Notice Regarding Payment of Subsistence Allowance to Low-Income Employees
The Ministry of Labour and Social Welfare has issued Notice Regarding the Payment of Subsistence Allowance to Low-Income Employee No.3534/MLSF, dated 27 September 2024 (“Notice“).
The Notice provides that employers and entrepreneurs of production, business and service entities are to pay subsistence allowances to employees who have no profession, educational qualifications, or training who work under their responsibility, in the amount of LAK900,000 per person/month. The total wage or salary of an employee including the subsistence allowance shall not be less than LAK2.5 million per person/month.
The target people who will receive subsistence allowances are (i) those who work in the labour unit both within and outside the system, and (ii) household employees, with less than LAK2.5 million per person/month in income excluding overtime money, welfare money and other policy money.
The Notice came into operation on 1 October 2024.
Decree on Private Education
The Government has issued the Decree on Private Education No.332/GOV, dated 19 July 2024 (“Decree“), which was published in the Lao Official Gazette on 30 September 2024. The Decree replaces the Decree on Private Education No.64/PM dated 14 August 1995.
This Decree applies to individuals, legal entities, and domestic and foreign state and private organisations that are active and undertake activities related to private education in Lao PDR.
The Decree defines private education as education in the national education system in which private entities (whether domestic or foreign) may invest with the permission of the education and sports sector authority.
In accordance with Article 11(1 and 2) of the Decree, individuals and legal entities, both domestic and foreign, that intend to invest in lease or concession activities, including activities in the controlled list, shall register their enterprises with the industrial and commerce sector authority as defined in the Law on Enterprises and apply for investment licences with the planning and investment sector authority as defined in the Law on Investment Promotion. After receipt of the enterprise registration certificate and investment licence, they must apply for a private education place establishment licence with the education and sports sector authority.
Individuals and legal entities, both domestic and foreign, who intend to invest in activities that are not in the lease or concession list and those that are not in the controlled list, must register their enterprises with the industry and commerce sector authority as provided in the Law on Enterprises. After receipt of the enterprise registration certificate, they are required to apply for a private education place establishment licence with the education and sports sector authority.
Notice to Suspend Receipt of Vehicle Import-Export Business Proposals
The Ministry of Industry and Commerce (“MIC“) issued the Notification on Suspending the Receipt of Vehicle Import-Export Business Proposals No.1662/PSO, dated 5 July 2024. MIC, through this notification, has informed the public that it will suspend receipt of vehicle import-export business proposals from 9 July 2024 to 31 December 2024. This is to manage the collection of statistics of vehicle importers and exporters for a more effective and accurate processing of business proposals. The receipt of vehicle import-export business proposals will resume on 1 January 2025.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice
