Lithuania’s Finance and Social Security and Labour Ministries have proposed to the government to increase the minimum monthly wage by 110 euros, to 840 euros before tax, from January 1, 2023.
The ministries also proposed increasing the non-taxable income threshold by 85 euros, to 625 euros.
The Cabinet will consider the rates of the minimum wage and the non-taxable income, which will be applied from January 1, 2023, during its meeting on September 21. However, draft decisions have not been made public so far.
Lithuania’s Tripartite Council representing the country’s government, employers and trade union last week failed to reach an agreement on raising the minimum monthly wage from next year and would submit different opinions to the government.
Prime Minister Ingrida Simonyte said earlier that the potential slowdown in the growth of the economy and wages next year should be considered, while negotiating the rate of the minimum wage.
This year, the non-taxable income rate stands at 540 euros, while the pre-tax minimum monthly wage is 730 euros or 550 euros after tax. (LRT/Business World Magazine)