Lao government has approved raising the monthly minimum wage in Laos from 1,300,000 kips (66 U.S. dollars) to 1,600,000 kips (82 dollars), in a bid to keep pace with the rising cost of living.
Following the cabinet's monthly meeting for July, the Prime Minister's Office on Wednesday issued a notice on raising the minimum wage for workers in Laos starting on Oct. 1, according to a Laopattana report on Friday.
Members of the National Assembly (NA) discussed and proposed a minimum wage increase in June 2023, as soaring inflation rates have had a significant impact on the cost of living in Laos.
Depreciation of the Lao currency kip and skyrocketing inflation are the prime motives for Lao people to seek jobs in neighboring countries, resulting in labor shortages in Laos.
NA members expressed their concern over the continuing dire state of the economy, with more and more people leaving Laos for better-paid jobs in other countries.
So far this year, some 31,394 skilled workers have left Laos to work abroad, with more than 30,200 people going to Thailand, according to a report released by the Ministry of Labor and Social Welfare in April 2023.
In 2022, as many as 500,712 Lao nationals were working overseas, according to the report.
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