Guidelines on Adjusting Subsidies and Policy Funds

Article

Lao People's Democratic Republic
Peace, Independence, Democracy, Unity, Prosperity
Ministry of Finance No. /MoF
Vientiane Capital, December 9, 2024

Guideline
On Adjustment of Allowances and Various Policy Funds

- Pursuant to the Decree on the Organization and Operation of the Ministry of Finance (Amended) No. 353/PM, dated August 2, 2024;
- Pursuant to the Notification of the Office of the Prime Minister No. 236/OPM, dated November 14, 2024;
- Pursuant to the Guideline on Calculation of Basic Salary and Various Allowances for Civil Servants, Military, Police, Retirees, and Disabled Persons No. 2924/MoHA, dated October 19, 2012;
Based on the proposal of the State Budget Department, Document No. 102/ກງລ, dated January 5, 2024.

In order to implement the government's policy on increasing the cost of living and adjusting allowances and various policy funds to be consistent and close to the current situation.

The Ministry of Finance issues the following implementation guidelines:

1. Continue to implement the index and index structure as previously done, at a value of 7,350 kip per index, uniformly across the entire state salary system nationwide;

2. Implement a specific assistance policy for civil servants, retirees, and disabled personnel whose basic salary is below 1,700,000 kip; in cases where it is lower than 1,700,000 kip, the government will provide additional support to make up the difference;
3. Increase the cost-of-living allowance as additional benefits by 150,000 kip/person/month (third increase), combined with the previous two cost-of-living allowances, totaling 450,000 kip/person/month, to be provided to civil servants (active civil servants, civil servants with 95% attendance, civil servants studying domestically or abroad according to government policy), teachers, military personnel, police, retirees, disabled persons, and the five target groups under the state social security system, namely: basic disability, re-retirement, family members, legal guardians, and special disability caregivers, implemented uniformly nationwide;

4. Revise the administrative and technical position allowances of civil servants by merging the personal fuel allowance, telephone allowance (position types 1, 2, and 3) and purchase expenses
Books, pens, rulers, and other personal use items that were previously reimbursed under administrative expenses are now consolidated into a single allowance, paid centrally within the new salary structure of government officials, as follows:

1) Administrative position type 1: 1,200,000 kip/person/month
2) Administrative position type 2: 1,000,000 kip/person/month
3) Administrative position type 3: 850,000 kip/person/month
4) Administrative position type 4: 550,000 kip/person/month
5) Administrative position type 5: 450,000 kip/person/month
6) Administrative position type 6: 400,000 kip/person/month
7) Administrative position type 7: 350,000 kip/person/month
8) Administrative position type 8: 300,000 kip/person/month
9) Technical staff: 200,000 kip/person/month
For the implementation of position allowances for military and police, continue to follow the old rates that have been implemented in the past.

Adjustment of seniority allowance

Implement seniority allowance for employees-civil servants, military, police, retirees, disabled, rehired retirees, and family members of all service years, details as follows:

1) Service years 1-5 years: from 2,500 kip increased to 5,000 kip per year of service
2) Service years 6-15 years: from 5,000 kip increased to 10,000 kip per year of service
3) Service years 16-25 years: from 7,500 kip increased to 15,000 kip per year of service
4) Service years 26 years and above: from 10,000 kip increased to 20,000 kip per year of service

Adjustment of child policy allowance for employees-civil servants, military, police, retirees, and rehired retirees
From 37,240 kip/person/month increased to 100,000 kip/person/month;

Adjust the implementation of spouse policy allowance for civil servants, military, and police from 29,400 kip/person/month to 100,000 kip/person/month;

Adjust the professional allowance for military and police from 15% to 30% of the basic salary according to rank;

All allowances and policy payments not adjusted in this guideline shall continue to be implemented in accordance with Guideline No. 2924/GA, dated October 19, 2012, and other legislation adopted and promulgated in the past;

Let all ministers, heads of ministry-equivalent organizations, the Mayor of Vientiane Capital, all provincial governors, financial sectors, and relevant sectors nationwide acknowledge and proactively implement this guideline.
This document shall be complete and effective; in actual implementation, if difficulties or inconsistencies are found, promptly report to the Ministry of Finance.

This guideline is effective and shall be implemented from January 1, 2025 onwards.