News2023.05.05 11:10

Lithuania’s Tripartite Council approves minimum wage increase to €924

BNS 2023.05.05 11:10

Lithuania’s Tripartite Council, representing the country’s government, employers, and trade unions, on Friday approved a proposal to increase the minimum monthly wage by 10 percent to 924 euros next year.

The council also approved a 20 percent increase in the non-taxable income threshold in 2024 and called for decisions to be taken as quickly as possible.

The Finance Ministry proposed to increase the minimum wage by 84 euros, or ten percent, to 924 euros before tax, from the current 840 euros, and to raise the non-taxable income threshold, currently set at 625 euros, by 20 percent.

Deputy Finance Minister Mindaugas Liutvinskas said the Tripartite Council's decision is important for the government, which will make the final decision on the minimum wage.

“It is good to see that it is possible to find consensus on a 10 percent increase next year, so such a recommendation from the Tripartite Council to the government would be valuable and an important factor in making the decision,” he said.

The Finance Ministry also backs in principle a 20 percent increase in the non-taxable income threshold, but final decisions on this issue will be made when planning next year’s budget, according to Liutvinskas.

A 20 percent increase in the threshold would cost the state an estimated 210 million euros, he said.

Andrius Romanovskis, president of the Lithuanian Business Confederation, which represents employers’ interests in the Tripartite Council, said it was necessary to decide on next year’s minimum wage as soon as possible so that businesses can have more clarity in planning their budgets.

Ričardas Sartatavičius, director general of the Lithuanian Confederation of Industrialists, said that he supported such a minimum wage hike despite the economy being in a technical recession.

“Even though it may not be the right time to raise wages, [...] we understand everything and take responsibility, and, just like the state, we are flexible and make compromises,” Sartatavičius told the meeting.

Inga Ruginienė, chair of the Lithuanian Confederation of Trade Unions, said that the minimum wage should not be lower than 700 euros after tax.

Social Security and Labour Minister Monika Navickienė told reporters after the meeting that the minimum wage after tax would reach 709 euros.

The central Bank of Lithuania estimates that the minimum wage could rise by 113 euros, or 13.4 percent, to 952.84 euros before tax next year.

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