Lithuania to raise minimum wage next year

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Lithuania to raise minimum wage next year

The minimum monthly wage would increase by 15 percent, and the tax-exempt income threshold by almost 16 percent.

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 Wednesday. Draft decisions have not been publicly available so far.

Lithuania's Tripartite Council, representing the country's government, employers and employees, failed to reach an agreement on raising the minimum wage next year, and will submit different opinions to the government.

Deputy Finance Minister Mindaugas Liutvinskas said at the Council last week that the government would have to make a decision somewhere in the middle between 800 and 888 euros.

Prime Minister Ingrida Simonyte said that the factors that should be considered while negotiating the minimum wage should include the potential slowdown in the growth of the economy and wages next year.

This year, the non-taxable income rate is at 540 euros, while the pre-tax minimum monthly wage is 730 euros, or 550 euros after tax.