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(KPL) The Ministry of Labour and Social Welfare convened a meeting in Vientiane on July 24 to discuss the determination of the minimum wage for workers in the manufacturing, service, and agriculture sectors.
(KPL) The Ministry of Labour and Social Welfare convened a meeting in Vientiane on July 24 to discuss the determination of the minimum wage for workers in the manufacturing, service, and agriculture sectors.
The meeting was presided over by Minister of Labour and Social Welfare, Ms. Baikham Khattiya.
Since 1991, the minimum wage has been revised ten times, with the latest adjustment in 2023 setting it at 1,600,000 kip per month. However, Minister Khattiya noted that this amount no longer aligns with the current living costs of workers.
A survey conducted by the Ministry in late 2023 examined wages and living costs for workers in 27 labour units across Vientiane's manufacturing, service, and agriculture sectors.
The survey revealed that the average monthly wage for workers is 2,849,383 kip, while the average living cost is 3,357,956 kip per month. Based on these findings, the study suggests that the minimum wage should be approximately 4,191,504 kip per month.
The determination of the minimum wage also considers the Consumer Price Index (CPI), gross domestic product (GDP), inflation rates, and exchange rates.
"The research and adjustment of the minimum wage are crucial, particularly for unskilled workers, as the region and country continue to face economic and financial challenges. These challenges include instability in fuel prices, fluctuating goods prices, inflation, and the depreciation of the kip, all of which negatively impact the economy and the livelihood of workers," said Minister Khattiya.
The current economic conditions have made it difficult for workers to enter the domestic labour market, as their incomes do not cover their living expenses. "These urgent and significant issues need to be addressed collectively to find effective solutions," added the Minister.
KPL
