New minimum wage campaign for Lao garment sector

An education campaign to spread information about the new minimum wage in the garment sector, is being launched by the Ministry of Labour and Social Welfare (MOLSW) with the assistance of the International Labour Organization

Press release | 19 November 2015

Vientiane (ILO NEWS) – An education campaign to spread information about the new minimum wage in the garment sector, is being launched by the Ministry of Labour and Social Welfare (MOLSW) with the assistance of the International Labour Organization (ILO).

Labour Inspectors from MOLSW will be contacting employers in the garment sector to provide information and advice about the new minimum wage, which was introduced on 1 April 2015.  The campaign has been designed following consultations with key industry stakeholders.

Twenty companies will be visited by the Labour Inspectors, who will work with the employers on the correct application of the minimum wage regime. The Inspectors will offer tailored assistance to support employers and put in place processes to ensure future compliance.

The MOLSW Director General, Mr Phongxaysack Inthalath, said that the campaign’s aim was to ensure that employers were aware of their workplace responsibilities as well as how the labour inspectorate could help them apply the correct wage and build a culture of compliance.

The garment sector is Lao PDR’s largest manufacturing sector employer and makes a significant contribution to annual national exports. Around 30,000 workers are employed by about 60 exporting factories and 45 subcontracting firms, with production mainly in and around the capital, Vientiane.

This campaign is being coordinated with the assistance of the ILO project, Compliance through Inspection and Dialogue, which is financed by a multi-donor trust fund grant with contributions from the United States, Australia, the European Union, Germany, Ireland and a grant from the World Bank/International Development Association under the Lao PDR Second Trade Facility Project.

The aim of the project is to improve working conditions, productivity and competitiveness in the Lao PDR garment manufacturing sector, by strengthening the national labour inspection system, protecting workers’ rights and improving the garment sector’s competitiveness in global supply chains.

The ILO is the United Nations specialized agency that deals with labour and work-related issues. Its unique tripartite structure brings together representatives of governments, workers and employers to jointly shape policies and programmes, with the aim of promoting Decent Work for All.  In the context of this project the tripartite constituents are represented by the Ministry of Labour and Social Welfare, the Lao Federation of Trade Unions, the Lao National Chamber of Commerce and Industry and the Association of the Lao Garment Industry.

For more information on workplace rights and obligations please contact the Ministry of Labour and Social Welfare, Labour Management Division on 021 222 781.

For more information please contact

Ms Madeleine Jones
Chief Technical Advisor
Email