News

2019.07.02 17:00

Minimum wage in Lithuania set to rise 9.4 percent to €607

BNS 2019.07.02 17:00

The minimum monthly wage in Lithuania is set to rise 9.4 percent from €555 to €607 before tax, starting next year. The minimum hourly rate will also grow 9.7 percent to €3.39, from the current €3.72.

The state budget will need to find around €17 million euros a year, and the government is set to make the decision on Wednesday.

In late May, Lithuania's Tripartite Council uniting the government, employers and trade unions failed to reach agreement on how much to raise the minimum monthly wage as of 2020, leaving the decision to the government.

Trade unions and government representatives suggested raising the minimum wage by around 10 percent to €607 before tax. Meanwhile, employers proposed increasing it to €580.

Last year, the Tripartite Council also failed to reach agreement on raising the minimum wage as of 2019, leaving the government to propose the rate.

The Tripartite Council has decided that the minimum monthly wage should amount to 45-50 percent of the average salary. Once raised to €607, it will amount to 47.5 percent, compared to EU rates ranging from 45 to 51 percent.

Around 156,000 people in Lithuania including around 28,000 employees of budgetary institutions earn the minimum monthly wage, or less.