The Lao government has agreed in principle to raise the minimum wage amid rising living costs and rampant inflation in the country, The Lao Times reported. The decision was reached at a cabinet meeting chaired by Prime Minister Phankham Viphavanh in Vientiane in late April, the report said. The move comes amid cheers from low earners but serious dissatisfaction from business owners after the Malaysian government decided to drastically increase the country’s minimum wage by as much as 35 percent to 1,500 ringgit ($344). However, in Laos, the government has not yet agreed on the exact…
The Lao government has agreed in principle to raise the minimum wage amid rising living costs and rampant inflation in the country, lao times report.
The decision was reached at a cabinet meeting chaired by Prime Minister Phankham Viphavanh in Vientiane in late April, the report said.
The move comes after the Malaysian government Decide Raised the country’s minimum wage by a massive 35 percent to 1,500 ringgit ($344) amid cheers for low-income earners but serious dissatisfaction among business owners.
In Laos, however, after further discussions between the Ministry of Labour and Social Welfare and the Lao National Chamber of Commerce and Industry, the government has yet to make a decision on the exact amount and timeline for the rollout. The latter expressed concern that the pay rise would place a “heavy burden” on employers.
Current minimum wage ‘no longer viable’
Discussions on raising Laos’ minimum wage have been ongoing since March, after the Lao Federation of Trade Unions argued that the country’s current monthly minimum wage of 1.1 million kip ($88.80) would no longer be sufficient amid rising living costs and high prices. Feasible in markets that directly affect low-wage employees.
The federation proposes raising the minimum wage to 1.5 million kip ($122) per month.
Thai workers seek big pay rise
Meanwhile, in Thailand, businesses and employers have strongly opposed the proposed increase in the daily minimum wage from the current 313 baht ($9.14) to 336 baht ($9.82) by the Thai Labour Solidarity Committee and the State-run Workers’ Relations Federation. proposal. Nationally it reached 492 baht ($14.37).
The proposal comes amid a sharp rise in the prices of necessities including diesel, pork and poultry, and a surge in worker debt, with the average debt per worker household rising to 217,000 baht this year, the highest and highest in Thailand in 14 years. Rates in one of the countries Asia.
Employers disapprove of proposal
However, representatives of more than 40 employers’ associations in the country met with the labor minister to oppose the proposal. The Employers’ Federation of Thailand said it did not agree with the 492 baht proposal due to the current economic situation caused by the impact of the Covid-19 pandemic and the Russian-Ukrainian crisis.
The minister said the issue would be discussed by wage boards at the national and local levels, and a final decision was not expected until September this year.
