ID :
47689
Thu, 02/26/2009 - 10:10
Auther :
Shortlink :
https://oananews.org//node/47689
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Minimum wage rises by 20%
Minimum wage rises by 20%
(KPL) The Government has given notice of the increase in the minimum wage for workers from 290,000 kip to 348,000, an increment of 20 per cent.
This figure is lower than the 2008 proposal of the Lao Federation of Trade Unions to the National Assembly.
The increment will benefit many garment workers as the vast majority of this industry’s production workers are getting the present minimum wage salary scale.
The NA’s members’ proposal on the minimum wage increase to the National Assembly was 700,000 kip, but it received a cool reception from both from public and private sectors
One argument against such a hefty increase is that it would increase the expenditure of garment manufacturers during the present economic downturn.
According to a notice from the secretariat of the cabinet on 18 February, the government’s policy is to minimize the effects of the global economic crisis on the Lao economy. Concerning this matter, the Lao Garment Association convened an urgent meeting on 21 February, under the presidency of its Chairman, Mr Onsy Boutsivongsack to inform its members of the notice of the government on the minimum wage. During this meeting the members brainstormed on how to minimize the impact of the current global financial crisis and which is expected to worsen on the garment industry. “However, there is a piece of good news in the notice and it is that the rate of tax on the profit would be reduced from 35 per cent to 20 per cent, said Mr Onsy.
The notice also mentioned that the Lao kip would move within a range or band width of five per cent to the greenback or the United States dollar.
(KPL) The Government has given notice of the increase in the minimum wage for workers from 290,000 kip to 348,000, an increment of 20 per cent.
This figure is lower than the 2008 proposal of the Lao Federation of Trade Unions to the National Assembly.
The increment will benefit many garment workers as the vast majority of this industry’s production workers are getting the present minimum wage salary scale.
The NA’s members’ proposal on the minimum wage increase to the National Assembly was 700,000 kip, but it received a cool reception from both from public and private sectors
One argument against such a hefty increase is that it would increase the expenditure of garment manufacturers during the present economic downturn.
According to a notice from the secretariat of the cabinet on 18 February, the government’s policy is to minimize the effects of the global economic crisis on the Lao economy. Concerning this matter, the Lao Garment Association convened an urgent meeting on 21 February, under the presidency of its Chairman, Mr Onsy Boutsivongsack to inform its members of the notice of the government on the minimum wage. During this meeting the members brainstormed on how to minimize the impact of the current global financial crisis and which is expected to worsen on the garment industry. “However, there is a piece of good news in the notice and it is that the rate of tax on the profit would be reduced from 35 per cent to 20 per cent, said Mr Onsy.
The notice also mentioned that the Lao kip would move within a range or band width of five per cent to the greenback or the United States dollar.
