Manual Labour 

The Prime Minister's Office of Laos issued notice No. 1502/PMO for the adjustment of the minimum wage in August 2023. The local minimum wage increased from 1,300,000 LAK per person per month to 1,600,000 LAK per person per month on October 1, 2023. This increase is a continuation of the incremental minimum wage increases that began in mid-2022. If the employer employs a worker labouring in a hazardous area with difficult living conditions, the minimum wage must be increased by at least 15% of the minimum wage specified in the notice.    

According to the most recent data from the Ministry of Planning and Investment (Statistical Yearbook, 2022), the average wage of Lao employees varies by industry. Agriculture and industry have comparable minimum wage rates, while the service sector pays more than 3,011,000 LAK per person per month.  

Since June 2022, this is the third minimum wage increase in Laos. Depreciation of the Lao kip against foreign currencies and inflation in the cost of daily consumption products are two of the primary causes of this increased frequency of minimum wage hikes. These incremental increases also demonstrate the government's proactive approach to addressing the Laos cost-of-living crisis and its impact on low-wage workers. 

The demand for manual labor has increased, but it is difficult to obtain due to rising inflation rates. As a result, skilled labor is being attracted to neighboring nations where the minimum salary is greater. The organization seeking to employ workers must adhere to legal regulations that establish non-discrimination in terms of both employment and wages. Employers are obligated to comply with the government's regulations regarding the minimum wage and working hours. The labor might be hired either through an official work organizing business or through individual contracting.