Laos likely to raise minimum wage, Thailand still indecisive
The government of Laos has agreed in principle to a minimum wage increase amid rising cost of living and rampant inflation in the country, Laotian Times reported.
The decision was reached during a cabinet meeting chaired by Prime Minister Phankham Viphavanh held in late April in Vientiane, the report said.
The move comes after Malaysia’s government decided to substantially raise the country’s minimum wage by up to 35 per cent to 1,500 ringgit ($344) amid much cheer of low-income earners, but serious discontent of business owners.
However, in Laos, the government has yet to make a decision regarding the exact amount of the pay rise and the timeframe for its rollout after further discussion between the Ministry of Labour and Social Welfare and the Lao National Chamber of Commerce and Industry. The latter has expressed concerns that the pay raise would put a “high burden” on employers.
Current minimum wage “no longer viable”
Discussions on raising the minimum wage in Laos were ongoing since March this year after the Lao Federation of Trade Unions argued that the current monthly minimum wage in the country of 1.1 million kip ($88.80) was no longer viable amid increasing cost of living and high prices at markets directly affecting low-wage employees.
The federation had recommended the minimum wage be increased to 1.5 million kip ($122) per month.
Thailand’s workers seek substantial raise
Meanwhile, in Thailand, businesses and employers are vehemently opposing a proposal by the Thai Labour Solidarity Committee and the State Enterprises Workers’ Relations Confederation to raise the daily minimum wage from the current range of between 313 baht ($9.14) and 336 baht ($9.82) to 492 baht ($14.37) nationwide.
The proposal comes amid a steep rise in prices for essential goods, including diesel, pork and poultry and ballooning workers’ debt which rose to 217,000 baht in average for each worker’s household this year, a 14-year high for Thailand and one of the highest rates in Asia.
Employers disapprove proposal
However, representatives from more than 40 employer associations in the country met with the labour minister to push back against the proposal. The Employers’ Confederation of Thailand said that due to current economic conditions caused by the Covid-19 pandemic and the fallout from the Russia-Ukraine crisis, it disagrees with the 492-baht proposal.
The minister said that the issue would be discussed by wage committees on the national and local level and a final decision would not expected before September this year.
The government of Laos has agreed in principle to a minimum wage increase amid rising cost of living and rampant inflation in the country, Laotian Times reported. The decision was reached during a cabinet meeting chaired by Prime Minister Phankham Viphavanh held in late April in Vientiane, the report said. The move comes after Malaysia’s government decided to substantially raise the country’s minimum wage by up to 35 per cent to 1,500 ringgit ($344) amid much cheer of low-income earners, but serious discontent of business owners. However, in Laos, the government has yet to make a decision regarding the exact...
The government of Laos has agreed in principle to a minimum wage increase amid rising cost of living and rampant inflation in the country, Laotian Times reported.
The decision was reached during a cabinet meeting chaired by Prime Minister Phankham Viphavanh held in late April in Vientiane, the report said.
The move comes after Malaysia’s government decided to substantially raise the country’s minimum wage by up to 35 per cent to 1,500 ringgit ($344) amid much cheer of low-income earners, but serious discontent of business owners.
However, in Laos, the government has yet to make a decision regarding the exact amount of the pay rise and the timeframe for its rollout after further discussion between the Ministry of Labour and Social Welfare and the Lao National Chamber of Commerce and Industry. The latter has expressed concerns that the pay raise would put a “high burden” on employers.
Current minimum wage “no longer viable”
Discussions on raising the minimum wage in Laos were ongoing since March this year after the Lao Federation of Trade Unions argued that the current monthly minimum wage in the country of 1.1 million kip ($88.80) was no longer viable amid increasing cost of living and high prices at markets directly affecting low-wage employees.
The federation had recommended the minimum wage be increased to 1.5 million kip ($122) per month.
Thailand’s workers seek substantial raise
Meanwhile, in Thailand, businesses and employers are vehemently opposing a proposal by the Thai Labour Solidarity Committee and the State Enterprises Workers’ Relations Confederation to raise the daily minimum wage from the current range of between 313 baht ($9.14) and 336 baht ($9.82) to 492 baht ($14.37) nationwide.
The proposal comes amid a steep rise in prices for essential goods, including diesel, pork and poultry and ballooning workers’ debt which rose to 217,000 baht in average for each worker’s household this year, a 14-year high for Thailand and one of the highest rates in Asia.
Employers disapprove proposal
However, representatives from more than 40 employer associations in the country met with the labour minister to push back against the proposal. The Employers’ Confederation of Thailand said that due to current economic conditions caused by the Covid-19 pandemic and the fallout from the Russia-Ukraine crisis, it disagrees with the 492-baht proposal.
The minister said that the issue would be discussed by wage committees on the national and local level and a final decision would not expected before September this year.
