Lithuania's Ministry of Social Security and Labour has proposed to the government to increase the minimum monthly wage in the country by 61 euros (9.5 percent) to 703 euros before tax.
The hourly rate would go up by 3.93 euros to 4.3 euros.
“To reduce income inequality and poverty, we propose increasing the minimum monthly wage and the minimum hourly rate from the start of next year. These goals are included into the government's programme, and the economic estimates for making the necessary decision are favourable,” Minister Monika Navickienė said in a statement.
The minimum monthly wage now stands at 642 euros before tax.
Earlier this month, the Tripartite Council of employer, trade union and government representatives failed to agree on how much the minimum wage should be increased next year.
Worker representatives wanted to set the minimum wage at 750 euros, while employers resisted any raise, citing uncertainty over the pandemic's effects on businesses.
Some employer representatives proposed backing an increase to 703 euros on condition that the government not cut post-pandemic assistance to businesses.
The minimum monthly wage was last increased in January, from 607 to 642 euros (before tax).
There were some 147,000 people in Lithuania earning the minimum wage or less in April.
The state budget would need around 15 million euros for the pay increases.