Social security reform in Lao People’s Democratic Republic gains momentum

VIENTIANE, Lao People’s Democratic Republic (ILO News) – The reform of the 2018 Law on Social Security in Lao People’s Democratic Republic is progressing.

In a week-long workshop from 13 to 17 November 2023, legal and actuarial experts on social security from the International Labour Organization (ILO) collaborated with the Lao Social Security Organisation (LSSO) to share technical insights on the amendments of the law.

Padeumphone Sonthany, Vice Minister of Labour and Social Welfare, who opened the workshop, expressed gratitude for the ILO's support, emphasizing its crucial role in the legal amendment process.

Thongphanh Xayyalath, Deputy Director General of LSSO and Chair of the Social Security Law Amendment Committee, highlighted the importance of aligning the law with international standards and the national socio-economic context: “LSSO is now in the process of amending the Social Security Law. ILO’s support to this revision process will greatly contribute to the reform of some benefits and ensuring that the articles are aligned with international standards, especially Convention No. 102, and the national socio-economic context,” he said.

The workshop will be followed by a nationwide tripartite dialogue process, led by the Ministry of Labour and Social Welfare. The dialogue will seek inputs from representatives of ministries and government organizations at central and provincial levels as well as representatives of worker unions and national and sectoral employer associations. The dialogue is expected to highlight the problems and bottlenecks in the current law from each organization’s perspective and debate the proposed reform measures.

“The work that we are doing now will help to reform the social security scheme and make it more sustainable in the long run. Ultimately, this enhances protection for people throughout their lives as they face various risks and vulnerabilities,” said Loveleen De, Social Protection Programme Manager, ILO.

The amendment of the Law on Social Security is expected to improve the financial sustainability of the National Social Security Fund in the medium to long term and contribute to better compliance with international labour standards on social security, particularly the flagship Social Security (Minimum Standards) Convention, 1952 (No. 102).

ILO is supporting the reform of Lao PDR’s legal framework on social security and health insurance through its ILO/Korea Partnership Programme “Supporting the Implementation of Sustainable Social Protection Floors for Workers and their Families in ASEAN – Phase III” and its Luxembourg-funded project “Building social protection floors for all: support to the extension of social health protection in Asia” as well as the "Accelerating Universal Social Protection for Achieving the SDGs and Ending Poverty through Strengthened Governance and Digital Transformation" project.