(KPL) The Ministry of Labour and Social Welfare currently inspects business units in Vientiane Capital to find out whether the government policy on raising minimum wage from 626,000 kip to 900,000 kip is being observed.  The government’s announcement of the increase of the minimum wage took effect on 1 April 2015. 

The ministry expects to complete its nationwide inspection by September of this year.

“Currently, district and provincial officials across the country are inspecting business units and sectors to find out whether they are paying the new minimum wage and it is expected that the inspection will be completed sometime between August and September 2015. The results will then be publicized,” said on Wednesday Mr Phongsaysack Inthalath, Director of Labour Management, Ministry of Labour and Social Welfare.   

“Since the announcement was made, many units have begun preparing to translate into reality the government policy on increased minimum wage. However, some companies have asked for the postponement of the new minimum wage payment to improve their pay roll or be better prepared,” said Mr Phongsaysack.  

The minimum wage of 900,000 kip has been calculated based on monthly expenses including rice, meat, fish, electricity and water. It is not calculated to ensure saving purposes or other expenses such as car buying or wedding invitations. The minimum wage only applies to workers working at production units, businesses or services of business and social sectors, and non formal workers and domestic workers who are unskilled, inexperienced and possess no vocational qualifications and except those working in organizations which have internal statures put in place, Mr Phongsaysack said. 

Those with labour skills, professional skills, vocational qualifications must be paid higher pay or wage than the minimum wage, added Mr Phongsaysack.                                                   

KPL