Lao business operators agree minimum wage revision
Lao business operators agree minimum wage revision
Business operators have agreed to revise the minimum wage but the rise should not take it above 800,000 kip a month.
If the minimum wage goes over this figure it may impact on investment and increase overseas competition, the Lao Garment Industry Association's President Mr Onesy Boutsivongsakd told Vientiane Times recently.
He said as gross domestic product (GDP) in the country has grown about eight percent per annum since the last revision, the minimum wage should only be increased by 24 percent to make it about 780,000 kip.
On average workers are currently getting more than one million kip a month when their food allowance, overtime and bonuses are added, Mr Onesy said.
Investors, especially in the garment sector, also pay for transportation, dormitory fees and other accommodation for labourers, he commented.
However, he acknowledged that the minimum wage of Lao workers is lower than in some neighbouring countries, particularly Thailand and Vietnam, but that was because Lao labourers had poorer skills and training.
Most Lao labourers still have a casual attitude to work, accepting no responsibility and taking time off whenever it suits them.
The government last revised the minimum wage in 2011, increasing it to 626,000 kip a month (24,076 kip a day).
This will be the sixth time the minimum wage has been adjusted after the concept was first established in 1991, which was then only 26,000 kip a month or 1,000 kip a day according to the Lao Trade Union.
The monthly and daily rates were first amended in 1997 to 36,400 kip (1,400 kip a day), followed by 93,600 kip (3,600 a day) in 2000, 290,000 (11,500) in 2005, 348,000 (13,400) in 2009.
Minimum wage improvement will help to solve the Lao labour shortage and encourage more people to take up this type of employment.
A minimum wage adjustment needs to be discussed with many different sectors, however, to ensure it doesn't impact too heavily on businesses and investment plans before it is submitted to the government for consideration.
This month and next month, the Ministry of Labour and Social Welfare will cooperate with the Lao Trade Union and the Lao National Chamber of Commerce and Industry to open a consultation meeting which will report to the government.
Mr Onesy requested that before increasing the minimum wage, the government should first establish the true price of goods in the marketplace because most of these traders will amend their pricing when they consider it necessary.
vientiane times
