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June 21, 2022

Laos Raises Minimum Wage

On June 13, 2022, Laos’ Prime Minister’s Office issued Notification No. 829/PMO modifying the country’s minimum monthly wage.

The notification calls for two increases over the next 11 months. The first increase will occur on August 1, 2022, when the minimum monthly wage will become LAK 1,200,000 (approx. USD 81). The second increase, to LAK 1,300,000 (approx. USD 88) will take effect on May 1, 2023.

This raising is the first minimum wage increase in Laos since May 2018, and it comes at a time when the Lao kip is facing sharp depreciation against the US dollar, in conjunction with heightened inflation.

Despite this increase, the cost of labor in Laos remains among the lowest in the region. In Cambodia the minimum daily wage is KHR 40,000 (approx. USD 10), with a minimum monthly wage of USD 194 for regular workers in the garment, textile, and footwear industries. The minimum wage in Myanmar is MMK 600 per hour, or MMK 4,800 (approx. USD 2) for an eight-hour work day. In Thailand, the minimum daily wage ranges from THB 313 to 336 (approx. USD 9–10), depending on the province. In Vietnam, which has recently updated its wage guidance, the minimum wage also varies by location, with daily minimums of VND 15,600–22,500 (approx. USD 0.7–1) and monthly minimums of VND 3,250,000–4,680,000 (approx. USD 141–203).

For more details about the new minimum wage, or any other labor and employment matters in Laos, please contact Dino Santaniello at [email protected] or +856 21 262 355.

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