The Lithuanian government on Wednesday backed a proposal to increase the minimum wage by 10% from next year to 924 euros (before tax).
If approved by parliament, the minimum hourly rate in Lithuania next year will be 5.65 euros excluding tax, compared to 5.14 euros currently.
Minister of Social Security and Labor Monika Navicienė said that the planned increase in the minimum wage, coupled with a 20% increase in the non-taxable minimum, means that low-income people will benefit from an increase of 76 euros of their after-tax salary next year.
The Ministry of Social Affairs and Labor estimates that the increase in the minimum wage will cost the state 31.4 million euros next year.
Currently, the minimum wage in Lithuania is 840 euros before taxes.
As previously reported by The Postedia Business, in Estonia the minimum monthly salary is currently 725 euros. In Latvia, since January 1, 2023, the minimum wage has been set at 620 euros.