Laos Plans to Raise Minimum Government Salary by 2025
The Lao government plans to increase the minimum salary for civil servants to between one dollar 91.45 and one dollar 100.60 by 2025 due to economic challenges. Finance Minister Santiphap Phomvihane highlighted inadequacies in current salaries despite recent raises, citing inflation and currency issues. Further salary increases are being considered to bolster living standards.
The Lao government has announced plans to increase the minimum salary for civil servants to between LAK 2 million and 2.2 million (one dollar 91.45 – one dollar 100.60) by 2025, in response to rising living costs and economic challenges.
On 13 June, the Minister of Finance, Santiphap Phomvihane, addressed the National Assembly about the government's policy on salary and allowance increases.
Despite recent hikes, current salaries are insufficient to counteract inflation and currency depreciation.
In 2023, the minimum salary rose to LAK 1.7 million (one dollar 77.74), with an additional LAK 150,000 (one dollar 6.86) to cover living costs.
Another increase this year raised the minimum to LAK 1.85 million (one dollar 84.59).
Santiphap highlighted the priority of ensuring timely payments but acknowledged the economic challenges faced by government employees.
The Ministry of Finance is considering further salary increases, potentially reaching LAK 2 million to 2.2 million (one dollar 91.45 – one dollar 100.60) by 2025, representing an 8-18 percent rise.
This initiative is part of broader efforts to counteract inflation and currency depreciation.
As of June 13, official exchange rates are LAK 21,825 for one US dollar and LAK 694.45 for one Thai baht, with unofficial rates even higher.
Bounleua Sinxayvoravong, Governor of the Bank of the Lao PDR, has stated that high inflation is expected to persist through year’s end, likely preventing the government from reaching its 2023 inflation reduction goal of 9 percent.
On 13 June, the Minister of Finance, Santiphap Phomvihane, addressed the National Assembly about the government's policy on salary and allowance increases.
Despite recent hikes, current salaries are insufficient to counteract inflation and currency depreciation.
In 2023, the minimum salary rose to LAK 1.7 million (one dollar 77.74), with an additional LAK 150,000 (one dollar 6.86) to cover living costs.
Another increase this year raised the minimum to LAK 1.85 million (one dollar 84.59).
Santiphap highlighted the priority of ensuring timely payments but acknowledged the economic challenges faced by government employees.
The Ministry of Finance is considering further salary increases, potentially reaching LAK 2 million to 2.2 million (one dollar 91.45 – one dollar 100.60) by 2025, representing an 8-18 percent rise.
This initiative is part of broader efforts to counteract inflation and currency depreciation.
As of June 13, official exchange rates are LAK 21,825 for one US dollar and LAK 694.45 for one Thai baht, with unofficial rates even higher.
Bounleua Sinxayvoravong, Governor of the Bank of the Lao PDR, has stated that high inflation is expected to persist through year’s end, likely preventing the government from reaching its 2023 inflation reduction goal of 9 percent.
