The minimum wage in Lithuania could exceed 1,000 euros per month next year, Finance Minister Gintare Skaiste admitted on Thursday.
As she said in an interview with the radio station “Žiniu Radijas”, the Tripartite Cooperation Council, made up of trade union, employer and government representatives, has already started discussions on raising the minimum wage.
“The Bank of Lithuania has offered estimates of what the minimum monthly salary would look like if we keep the formula on which the negotiations were based in previous periods. It is thought that next year the minimum monthly salary will exceed one thousand euros, but it must be understood that the situation is not unambiguous and is not the same everywhere. ” presented the minister.
“In part, the minimum wage, like the increase in wages in general, contributes to economic stimulation, increases people’s purchasing power, however, at the same time, there are sectors where the situation is not as rosy as others where productivity is increasing,” Skaiste explained.
From 2024, the minimum gross monthly salary in Lithuania has been increased to 924 euros. This year, the tax-free minimum in Lithuania is 747 euros per month. As a result of the changes, compared to last year, the income of minimum wage earners has increased by 75 euros to 708 euros.
The tax reform project envisages that the minimum wage and the non-taxable minimum will be equalized by 2028. It is planned that in 2028 the minimum wage and the non-taxable minimum will be 1,200 euros per month.
