What are your views on the proposed minimum wage increase?

The authorities will raise the amonthly minimum wage, which currently stands at 1,100,000 kip, to 1,200,000 kip in August and further to 1,300,000 kip in May 2023. Such an increase will give people much-needed extra income and improve the welfare of workers at the bottom of the wage scale, while helping to reducing inequality. Vientiane Times asked people for their views on this development.

Ms Phoutthana, an employee in Xaythany district:  I think it’s good news as it comes at a difficult time when we’re all facing problems, especially as living expenses are rising much faster than incomes. I know that almost everything we use is imported and prices are greatly influenced by exchange rates. However, along with raising the minimum wage, the authorities should take steps to cap product prices and strengthen the value of the kip. This would go some way to ensuring that incomes match the cost of living.
Mr Saiyasis Nidmaniphon, an employee in Luang Prabang province:  I’m glad that the government has approved a minimum wage increase. I think this is essential because it will be a welcome boost to low-income workers. Even now, the cost of living is more than twice the level of usual salaries. A pay rise will improve their lives while also improving Laos’ image and the workplace atmosphere. If possible, the wage increase should be rolled out quickly and all minimum wage earners should have access to this pay rise. 
 Ms Sengmany, an employee in Xaysettha district of Vientiane: It’s good that the government is increasing the minimum wage. Everyone is facing more hardship these days because of the rising cost of living, with prices rising every day. I think the pay rise will encourage people to do better work, to become qualified, and help develop a more skilled workforce. This will help Laos reach regional and international levels of development. However, it will be good if the government can also control the inflation rate, make the Lao kip stronger, monitor the prices of products, and supply enough fuel to meet the demands of the public.
Ms Daly, an employee in Sikhottabong district of Vientiane: This is very good news, and a good way to improve the lives of workers. Even if the increase is not  much, it is better than not having any increase at all. However, the pay rise should be implemented effectively to ensure it has the right impact. The authorities should be careful in administering the scheme because there could be more disadvantages than advantages if there are no good plans or regulations. I think workers will be pleased with this raise, and they will watch to see how effectively it is carried out.
 
Ms Dor Inthavong, an employee in Xaysomboun province: It’s true that the cost of living is relatively high, with prices rising every day along with rents and other expenses. I would like to give a million thanks to the government for providing opportunities to everyone to develop and learn new job skills, but any wage increase should match living costs. Now, a monthly salary of two million kip is not enough for our living costs because the price of everything is very high. I urge the authorities to do more to keep prices in check, especially for fuel and other essentials. Unfortunately, prices always rise when the government approves a pay raise.

By Lamphone Pasanthong
(Latest Update June 17, 2022)