Vientiane, Aug 27 (IANS): The Lao government is considering a proposal to increase supporting allowances for enterprise employees to tackle the rising cost of living.

Speaking at the government's monthly meeting for August, Lao Prime Minister Sonexay Siphandone emphasised the urgency of tackling critical issues, including economic and financial challenges, education, labour, impacts caused by natural disasters and other social issues.

Workers in Laos, where labour costs remain relatively low, have struggled with living expenses as the country has been hit with high inflation, Lao National Radio reported on Tuesday.

Despite the government's efforts to address rising prices and inflation, the inflation rate in Laos remained high at 26.1 per cent in July, Xinhua news agency reported quoting Lao National Radio.

High inflation and depreciation of the Lao currency mean workers have been paid less in real terms, undermining their spending capacity and widely believed to have forced many to seek employment abroad, leading to worsening domestic labor shortages.

The meeting, held in Lao capital Vientiane from Monday to Tuesday, also reviewed the electricity pricing structure for 2024-2028 and considered several draft laws.

The meeting also reviewed the cabinet's work performance for August and discussed a work plan for September.