Analytics, Economics, Financial Services, Legislation, Lithuania, Wages
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Friday, 26.04.2024, 15:24
Lithuanian PM: minimum wage to grow moderately, not to harm economy
"Speaking
about the minimum wage growth, it will increase consistently by around 5%. This
is really a consistent growth compared with previous years," Skvernelis
said on LRT Radio on Tuesday morning.
"We have agreed at the Tripartite Council that
this would not be a political decision and that the minimum wage would be tied
to the average wage and would not exceed 50% (of the average wage). We will now
reach that limit, which will be in line with the indicators of most
countries," the prime minister said.
"Thus, I really don't see any threat here,"
he added.
The Tripartite Council brings together the government,
employers and trade unions.
An International Monetary Fund (IMF) mission that
concluded its visit to Vilnius on Monday warned the Lithuanian government that
further minimum wage increases might undermine the country's competitiveness.
The fund's experts recommended that "the emphasis
should be on rebalancing taxes away from labor towards capital and wealth, and
on improving compliance".
The government last month decided to increase the
minimum monthly wage by 20 euros to 400 euros next January. The minimum wage
was last raised to 380 euros last July.