Lao PDR Raises Statutory Minimum Wage from August 2022

As the costs of essential commodities continue to soar, driven by the unfettered weakening of the Lao Kip (“LAK”), the pandemic, and other external factors, many people in the Lao PDR are having a hard time making ends meet. In consideration of the ongoing monetary crisis and following a tripartite discussion between the Lao Federation of Trade Unions (LFTU), the Ministry of Labor and Social Welfare (MLSW) and the Lao National Chamber of Commerce and Industry (LNCCI), the Lao government has decided to increase the national statutory minimum wage from LAK1,100,000 to LAK1,300,000. As announced by the Prime Minister’s Office under Notification No. 829/PMO dated 13 June 2022, the increase will take place in two phases: in the first phase, the minimum wage will increase to LAK1,200,000 effective from 1 August 2022, and in the next phase, effective from  1 May 2023, it will increase to LAK1,300,000.

The said notification has requested the government authorities, employers and other stakeholders, including the trade unions, to work collectively to ensure the above minimum wage structure is implemented effectively. In addition, the Prime Minister’s Office has notified all employers to ensure strict compliance with the employee welfare requirements under the Labor Law No. 43/NA dated 24 December 2013 and the Law on Social Security No. 54/NA dated 27 June 2018.

In 2018, pursuant to the Prime Minister’s Office Notification No. 560/PMO, the national minimum wage was increased from LAK900,000 to LAK1,100,000, effective from 1 May 2018.

For more information on the minimum wage structure and employment regulations of the Lao PDR, please contact the VDB Loi Laos office: Meckhala Vilivong ([email protected]) or Arbear Sydavong ([email protected]).