The Lithuanian government has approved a proposal to raise the minimum monthly wage before tax by 88 euros, or by almost 14%, to 730 euros from January 1, 2022.
The minimum wage after tax will increase to 518 euros and the minimum hourly wage will rise from 3.93 euros to 4.47 euros.
Social Security and Labour Minister Monika Navickiene has said that it would be one of the most significant minimum wage increases in a decade.
Economists at the central Bank of Lithuania estimate that the proposed 13.7% increase in the minimum wage would result in average wages rising by around 1.5 points faster in 2022.
Finance Minister Gintare Skaiste has said that now is a good time to raise the minimum wage, given the country’s good economic situation, favourable forecasts for next year and good budget revenue collection.
The Lithuanian Labour Code allows paying the minimum wage only for unskilled labor. (LRT/Business World Magazine)
