(KPL) The Lao government has announced plans to increase allowances for civil servants, soldiers, police officers, retirees, and disabled employees as part of efforts to address the rising cost of living and alleviate financial hardships.

In a directive issued on December 13, the Ministry of Finance detailed the new policies, which will take effect on January 1. Among the changes, the government will maintain the index value of 7,350 kip across the state salary system and provide additional financial support for employees earning a minimum basic salary below 1,700,000 kip.

Civil servants, including permanent staff, newly recruited employees, and those pursuing studies under government policies, will receive an additional living allowance of 150,000 kip per month. This increase brings the total living allowance to 450,000 kip per month. The new rate also applies to teachers, police officers, soldiers, retirees, and individuals eligible under the public social security system.

The government will consolidate several existing allowances, such as fuel, telephone, and office supply expenses, into a single monthly payment. Administrative category 1 employees will receive 1,200,000 kip. Administrative category 2 employees will receive 1,000,000 kip. Administrative category 3 employees will receive 850,000 kip and technical position holders will receive 200,000 kip per month.

Military and police allowances will continue to follow existing rates.

The policy also increases tenure allowances for civil servants, soldiers, and police based on years of service including employees with 1–5 years of service will see their allowance double to 5,000 kip per year, those with 6–15 years of service will receive 10,000 kip per year, up from 5,000 kip, employees with 16–25 years of service will receive 15,000 kip per year, up from 7,500 kip and those with over 26 years of service will see their allowance rise to 20,000 kip per year, up from 10,000 kip.

Child benefits will increase from 37,240 kip to 100,000 kip per month, while allowances for spouses of civil servants, soldiers, and police will rise from 29,400 kip to 100,000 kip per month. Professional allowances for military and police personnel will increase by 15 to 30 percent of their basic salary, depending on rank.

The Ministry urged authorities to address any challenges promptly, as the updated policies aim to improve livelihoods and economic resilience across Laos.

KPL