Employment & Labour Law

Government approves Minimum Wage Increase

Date: 23 April 2018; Type: Legal News; Source: Vientiane Times

The government has approved a minimum wage increase from the present 900,000 kip to 1.1 million kip a month, according to the Prime Minister’s Office.

The pay rise is expected to take place from May 1 this year when Laos celebrates International Labour Day and should bring pride and pleasure to all Lao workers.

The Ministry of Labour and Social Welfare has been entrusted to play an active role in collaborating with other relevant sectors to implement the government’s notice.

Lao Federation of Trade Unions (LFTU)’s Labour Protection Department Director General, Mr Ounkham Ounyaseng told Vientiane Times on Monday the wage increase was vital to improving workers’ livelihoods.

“The pay rise should minimise workers’ hardships amid the rising cost of living in Laos, with product prices rising every month,” he said.

“900,000 kip a month is not enough to live on, and many items are increasingly expensive. Employers should sympathise with workers and help them to improve their living standards as labourers are the ones enabling employers to make a profit.”

Mr Ounkham explained that some employers didn’t understand the term ‘minimum wage’ which should exclude overtime payments and other allowances.

While some entrepreneurs argued the pay rise would definitely increase production costs of Lao goods for export, Mr Ounkham responded that if workers get more wages, employers can give more responsibility to workers and ensure the quality of the products produced.

Previously many factories and companies in Laos had jobs on offer but few people were interested in working for such low pay.

The low salaries offered by employers in Laos drive many people across the border to seek work in Thailand where the wages are higher.

“If workers get sufficient payment from employers, they will be happy to dedicate their energy and efforts to working for the companies,” Mr Ounkham said.

Over recent years, the increased cost of living has significantly contributed to driving the country’s burgeoning trade deficit.

Minister of Industry and Commerce, Mrs Khemmani Pholsena told a National Assembly session last year the prices of food staples in Laos are 10-20 percent higher than in Thailand and Vietnam.

In recent years, the government has approved increases in the minimum wage to enable workers to cope with the rising cost of living. In 2012 the government raised the minimum wage from 348,000 kip to 626,000 kip a month, and in 2015 ordered a further hike to 900,000 kip a month.

According to the Lao Federation of Trade Unions, last year Laos had about 551,200 labourers, many of whom are largely unskilled, with some 70 percent working in the industrial sector.

Notice: The Publishers of Asean LIP acknowledge the permission granted by the relevant official/ original source for the reproduction of the above/ attached materials. You shall not reproduce the above/ attached materials in whole or in part without the prior written consent of the Publishers and/or the original/ official source. Neither the Publishers nor the official/ original source will be liable for any loss, injury, claim, liability, or damage caused directly, indirectly or incidentally to errors in or omissions from the above/ attached materials. The Publishers and the official/ original source also disclaim and exclude all liabilities in respect of anything done or omitted to be done in reliance upon the whole or any part of the above/attached materials. The access to, and the use of, Asean LIP and contents herein are subject to the Terms of Use.

Get ASEAN LAW ALERT

Legal updates by e-mail. It's Free.

INDUSTRY UPDATES

Judge unconvinced by Rapist’s Excuse

A supreme Court judge labelled a 72-year-old man’s excuse that police threats were the reason he confessed to raping a minor in Kampong Chhnang province in 2013 as “unreasonable”.

Read More

INDUSTRY UPDATES

Customs Department offers Online Payment Services

BANGKOK, Jan 16 (NNT) - Businesses needing to make payments to the Customs Department can now do so through online banking.

Read More

INDUSTRY UPDATES

January 21 Special Non-Working Day in ARMM, Two Other Cities

MANILA, Jan 17 (PNA) - Malacañang has declared Jan. 21, 2019 (Monday), a special non-working day in the Autonomous Region in Muslim Mindanao (ARMM), Isabela City, and Cotabato City for the plebiscite of the Bangsamoro Organic Law (BOL).

Read More

INDUSTRY UPDATES

White Paper on Defence to be tabled in Parliament this Year

KOTA KINABALU, Jan 17 (BERNAMA) - The Ministry of Defence will table a White Paper on Defence which will detail the tasks and roles of the Malaysian Armed Forces, said Defence Deputy Minister Senator Liew Chin Tong.

Read More

INDUSTRY UPDATES

Chief Justice calls for Government Audit on Rights of Indigenous People

KOTA KINABALU, Jan 17 (Bernama) - Chief Justice Tan Sri Richard Malanjum today proposed that the government conduct an audit on the rights of the indigenous people to ensure that they are in line with the United Nations declaration.

Read More

INDUSTRY UPDATES

Rape victim testifies that Sex with Convicted Man was ‘Consensual’

A man who was sentenced to 10 years’ imprisonment for a 2007 rape asked the Appeal Court on Tuesday to release him on bail as he was suffering from mental illness.

Read More

INDUSTRY UPDATES

PRRD appoints new Sandiganbayan Associate Justice

MANILA, Jan 16 (PNA) - President Rodrigo R. Duterte has appointed former Makati Regional Trial Court (RTC) judge Ronald Moreno as Associate Justice of the Sandiganbayan.

Read More

INDUSTRY UPDATES

Foreign Ministry continues Ban on UN Special Rapporteur Lee

THE government said it would not rescind its ban on UN Special Rapporteur Yanghee Lee from entering Myanmar, despite her recent request, a Foreign Ministry official said Monday.

Read More

INDUSTRY UPDATES

Pay the Minimum Wage or face Legal Action, Employers told

Employers in Laos will be subject to legal action if authorities discover they are failing to pay their workers the minimum wage.

Read More

INDUSTRY UPDATES

DLT introducing Electronic Licenses

BANGKOK, Jan 15 (NNT) - The Department of Land Transport (DLT) has officially begun to introduce electronic drivers licenses, launching a downloadable application that can digitally hold driver authorizations and vehicle details.

Read More

INDUSTRY UPDATES

DOLE vows Aid for Workers displaced by Hanjin Bankruptcy

MANILA, Jan 15 (PNA) - The Department of Labor and Employment (DOLE) on Tuesday vowed to assist 3,800 workers of Hanjin Heavy Industries and Construction Philippines (HHIC-Phil) who might be affected after the South Korean shipbuilder declared bankruptcy and applied for rehabilitation.

Read More

INDUSTRY UPDATES

Over 100 Medicine Brands for Treatment of Diabetes, Hypertension, High Cholesterol now cheaper under TRAIN Law

The Food and Drug Administration (FDA) has submitted to the Department of Finance (DOF) a list of over 100 medicines with their corresponding generic names and brands for the treatment and prevention of diabetes, hypertension and high-cholesterol, the sale of which are now exempted from the payment of the value-added tax (VAT) beginning Jan. 1 as provided under the Tax Reform for Acceleration and Inclusion Act (TRAIN).

Read More

INDUSTRY UPDATES

Tax Academy eyeing Campuses in Tagaytay, New Clark City

The Department of Finance (DOF) is planning to set up permanent campuses of the Philippine Tax Academy (PTA) in Tagaytay City in Cavite and New Clark City at the Clark Special Economic Zone in Pampanga.

Read More

INDUSTRY UPDATES

Courts urged to speed up Judicial Reform

Hanoi, Jan 14 (VNA) - General Secretary of the Communist Party of Vietnam and President Nguyen Phu Trong has stressed the need for courts at all levels to speed up judicial reform and improve the quality of judgment to minimise inaccurate verdicts and overlooking criminals.

Read More

INDUSTRY UPDATES

No Passport Data lost, breached: Government Printer

MANILA, Jan 14 (PNA) - No passport loss nor breach has occurred in the Department of Foreign Affairs (DFA), APO Production Unit Inc. (APUI), the current Philippine e-passport maker said Monday.

Read More