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Laos gov't supervises enterprises to ensure increases of minimum wage flowing to workers

Xinhua, May 4, 2015 Adjust font size:

Factories and manufacturing assembly plants are in the sights of Laos' officials as the government seek to ensure recent increases of the minimum wage flowing to workers, Lao News Agency KPL reported Monday.

The minimum monthly wage for unskilled labor increased to 900, 000 kip (111.25 U.S. dollars) from 626,000 kip (77.39 U.S. dollars) as a result of regulations that came into force on April 1.

The Ministry of Labor and Social Welfare began inspections of businesses in the capital to ensure compliance with legislation and expects to complete its nationwide inspection by September.

Ministry of Labor and Social Welfare's Director of Labor Management Phongsaysack Inthalath said the minimum wage of 900,000 kip had been calculated based on a typical basket of necessities including rice, meat, fish, electricity and water.

The rate applied to staff deemed unskilled, inexperienced and without vocational qualifications employed by manufacturers, retailers and service providers and social sectors as well as to domestic workers and those engaged in the non-formal sector.

Meanwhile, employees with trade or professional skills and related vocational qualifications should be paid more.

He said some businesses were ahead of others in implementing the pay rise.

"Some companies have asked for the postponement of the new minimum wage payment to improve their pay roll or be better prepared," Phongsaysack was reported as saying. Endi