Laos to increase private-sector minimum pay to LAK 3.4 million

Private-sector workers in Laos will be entitled to minimum monthly pay of LAK 3.4 million from January 2027, under a Prime Minister’s Office notice dated 21 October. The current minimum is LAK 2.5 million.

The revised amount includes a base wage of LAK 2 million and a living allowance of LAK 1.4 million. Private employers in business and services are among those covered, while government employees remain on a separate salary scale.

Authorities considered several options in March amid increasing living costs. The National Labor Committee sought LAK 4.1 million, compared with the government’s proposal of about LAK 3.6 million, based on consumer price data. Employers put forward about LAK 2.8 million.

Figures from the Lao Statistics Bureau show inflation rose from 5.1 per cent in January to 7.8 per cent in September. Fuel and school-related expenses contributed to the increase, with housing, water, electricity and gas registering the largest rise among spending categories.

The Ministry of Labour and Social Welfare introduced the living allowance in October 2024 to support workers who lacked formal training as prices increased.

For civil servants, the government set a LAK 3 million monthly minimum in January 2026, although some junior staff still receive less depending on rank. The Finance Ministry has proposed to the National Assembly that every civil servant receive at least that amount.