By Yoon Sat - Nov 19, 2024
Myanmar garment workers are increasingly interested in seeking employment in Laos due to the recent decision to raise the minimum wage there to as high as $14 per day.
Laotian employers have been recruiting Myanmar workers through local recruitment agents and brokers. In addition, agencies are now officially involved in sending Myanmar workers to garment factories in Laos.
Currently, Myanmar’s minimum wage, set in 2018, remains at 4,800 MMK (approximately $1) per day. Despite rising costs of living, the government has not increased this amount, except for two increments of 1,000 MMK as a subsidy. This stagnant wage has made it increasingly difficult for domestic workers to make ends meet.
“In Laos, the basic monthly salary was already around $200 in the past. Now, with the wage increase, more workers are getting interested. Many have gone in the past, even though informal routes, using one week passes or other means, determined to get there. Once they leave Myanmar and start working abroad, employers are actively hiring them. Now that official routes have opened, it’s become a new pathway,” said a foreign worker recruitment agent.
In Laos, workers are expected to earn between $200 and $250 per month for an eight-hour workday, without overtime. Meanwhile, in Myanmar, garment workers earn just 4,800 MMK per day plus a 2,000 MMK subsidy, which has driven many workers to seek opportunities in Laos.
“There were agencies sending workers to Laos even before the formal agreements. I haven’t sent any workers yet, but I’m observing the situation. Even if agencies aren’t involved, brokers are connecting workers to jobs across the border in China as well. Garment factories in Laos sometimes cover travel costs upfront, but then deduct it from the worker’s salary. While the wages are low, the lack of wage increases in Myanmar and the rising cost of living are pushing more workers to leave,” they added.
The Laotian government recently announced a new minimum wage policy, increasing it from $14 (300,000 Lao Kip) to $41 (900,000 Lao Kip) per month, effective October 1, as per a statement issued by the Ministry of Labor and Social Welfare on September 27.
“The wage increase is mainly for their own citizens. For Myanmar workers, there is an MoU guaranteeing monthly wages of $200 to $250, with 12-hour work shifts and no overtime. Conditions are good at some factories, but not at all. Workers are going because the process is faster, and they can secure jobs quickly,” said a factory owner.
In October, the Laotian Ministry of Labour and Myanmar military’s Ministry of Labour signed a Memorandum of Understanding (MoU) to cooperate on labor issues. This agreement includes provisions for legal work permits for Myanmar workers and the recognition of those already working informally in Laos. This development has further increased Myanmar workers’ interest in seeking employment opportunities in Laos.
