Laos to Increase Minimum Wage from January 2027

On 21 October 2026, the Prime Minister’s Office issued Notice No. 1499 (the “Notice”), announcing increases to the minimum wage for employees working in production, business, and service establishments nationwide. The new rates will apply from 1 January 2027.

The monthly minimum wage will now be LAK3.4 million, an increase of LAK900,000 from the previous minimum wage of LAK2.5 million in 2024, representing a 36% increase.

For businesses and investors operating in the Lao PDR, this wage increase may have implications on operating costs, labor management, and overall business strategy.

We recommend that the companies review their payroll arrangements and employment terms against the revised rates and account for the increase in their 2027 staffing budgets. Any necessary adjustments should be ready for implementation from January 2027.

Should you have any questions or require assistance in reviewing your employment arrangements or compliance with the revised wage requirements, please contact the undersigned or your usual VDB Loi adviser.