VIENTIANE, June 17 (Xinhua) -- The Lao government has agreed to increase the monthly minimum wage from 1,100,000 kips (some 72 U.S. dollars) to 1,300,000 kips (some 86 U.S. dollars) for private-sector employees in a bid to keep pace with the rising cost of living.
The increase will come into effect in August, and will be a boost to the millions of people struggling to survive during the current economic downturn, which has resulted in skyrocketing prices.
According to local daily Vientiane Times report on Friday, the wage increase was proposed by the Ministry of Labor and Social Welfare and was announced by the Prime Minister's Office on Monday.
The wage hike does not apply to government officials, who are paid through a different salary scale.
The announcement instructed the owners of garment and other factories in Laos to put the new minimum wage into practice. Employers will be subject to legal action if they fail to pay their employees the new minimum wage.
The Prime Minister's Office said it was the responsibility of the Lao Federation of Trade Unions to work with the relevant parties to negotiate individual or collective employment contracts, wages, policies and benefits.
A senior official from the Ministry of Labor and Social Welfare said employers should empathize with workers and help them to improve their circumstances, especially as they are the ones who enable their employers to make a profit.
The pay increase is considered essential to prevent people from falling into poverty and suffering hardship amid spiraling living costs. ■
