Analytics, Economics, Financial Services, Lithuania, Wages

Andrius Kubilius.

"Payment for work is a very important parameter and it depends first on the economy and business development. At this point, we still feel the consequences in the wake of a really severe economic downturn, and it would not be quite right to expect a rapid pay rise," the prime minister told the Ziniu Radijas on Thursday morning.

The prime minister stressed the role of an agreement between an employer and an employee, informs LETA/ELTA.

"I want to emphasise that the largest share of the Lithuanian economy is private and there are always possible agreements between business and employees, if the business and the workers think that there is a favourable situation to increase wages. Wages are set not by the Government, the Cabinet together with social partners can only consider the issue of the minimum monthly pay, but the discussions to date have shown that the issue is viewed very differently in different economic sectors and businesses," said Kubilius.

As reported,  the Government is to receive a proposal to raise the minimum monthly wage (MMA) to 900 litas (257.9 euros) on July 1 this year and to 1,000 litas (286.5 euros) as of 1 January 2012.

On Thursday, Elder of the Seimas' Christian political group Vidmantas Ziemelis is to present the parliamentary draft resolution on the increase of the minimum wage.

The resolution proposes increasing the amount of tax-exempt income gradually to ensure social justice without affecting the residents' interest in work.

The draft resolution stresses that the MMA increase would create a favourable total impact on central government sector finance, because the additional revenues of SoDra, the Compulsory Health Insurance Fund and the national budget would exceed expenditures. Currently, the minimum wage in Lithuania is 800 litas.