Laos Tripartite Committee Reviews Minimum Wage Adjustment Amid Rising Living Costs
(KPL) On March 19, 2026, The National Labour Committee convened its third meeting of 2026 on Thursday at the Lao Federation of Trade Unions headquarters to review proposals for adjusting the national minimum wage in line with rising living costs and current economic conditions.
The session was co-chaired by Phongsaysack Inthalarath, Deputy Minister of Labour and Social Welfare; Vilay Vongkhaseum, Vice President of the Lao Federation of Trade Unions; and Xaybandith Rasphone, Vice President of the Lao National Chamber of Commerce and Industry. Representatives from government, labor, and employer organizations attended in full.
Proposed Wage Figures
Phongsavanh Xaykosy, Director General of the Labour Management Department, presented research based on the Consumer Price Index (CPI), summarizing proposals from three main sectors:
Labour Representatives (Lao Federation of Trade Unions): Recommended a minimum wage of 4,100,000 kip per month, citing rising living costs and the need to improve workers’ quality of life.
Government Side (Ministry of Labour and Social Welfare): Proposed a base wage of 2,710,451 kip, with an additional 900,000 kip cost-of-living allowance, bringing the total to 3,610,451 kip per month.
Employer Representatives (LNCCI): Suggested a base wage of 1,931,680 kip, totaling 2,831,680 kip with the allowance, aimed at maintaining business sustainability.
Path Forward
Phongsavanh Xaykosy said the research results will be submitted urgently to the Prime Minister’s Office for consideration, approval, and official announcement within 2026.
He added that strict inspections will follow to ensure compliance once the new wage takes effect. Additionally, labor skill testing regulations will be revised to ensure wages reflect workers’ actual knowledge and competencies.
“This minimum wage adjustment is critical for safeguarding the livelihoods of Lao workers,” said Phongsavanh Xaykosy. “It will help them manage the rising cost of living while maintaining economic stability for businesses.”
The National Labour Committee emphasized that the tripartite approach, incorporating government, labor, and employer perspectives, is essential for balancing worker welfare with sustainable business operations.