Good for Business, Lithuania, Quality of life, Taxation, Wages
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Wednesday, 24.04.2024, 21:55
Ministry proposes to raise Lithuania's minimum wage to EUR 430
The
ministry's proposal came after the Tripartite Council, which brings
together the government, some employers and trade unions, failed to reach a
compromise on an increase in the minimum wage.
The
government is expected to discuss the ministry's proposal shortly.
According
to a government resolution drafted by the ministry, the measure "will
raise pay for workers on the lowest income and will increase their purchasing
power".
However,
"it may make it harder for young people to enter the labor market,
may slow down the decline in unemployment, may worsen the financial
situation of not very profitable businesses and will lead to a rise
in prices for goods and services," it reads.
The minimum
hourly wage will likely rise by 18 euro cents to 2.63 euros, with the actual
wage to reach 3.39 euros.
The
ministry's figures show that around 36,000 employees of budgetary establishments
currently receive less than 430 euros monthly, which means that an additional
13 mln euros in public funds will need to be allocated next year to increase
their pay.
A total of
around 47,000 workers in Lithuania earned a minimum wage in July and about
99,600 received less, according to the ministry.
The minimum
monthly wage was raised by 20 euros to 400 euros last January.