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In the case of the Covid-19 pandemic in the face of an uncertain economic situation, it was previously agreed that the MMA rate of € 642 could be revised after the Ministry of Finance updated its forecasts in December.
The Tripartite Council decided that the MMA could change if more than 8.5 percent were expected in 2021. unemployment rate and less than 2%. wage growth.
However, the economic development scenario published this Monday predicts that the unemployment rate will be 8.2 percent in 2021, and the average monthly gross salary will reach 1,475.9 euros and 4.1 percent. higher than in 2020.
Although it was proposed to remove the MMA issue from the agenda, the council, made up of government representatives, workers and businessmen, decided to exchange arguments again. Employers have suggested that MMA not increase yet.
“Now it is too early to raise the minimum wage, especially considering the coronavirus outbreak,” said Ričardas Sartatavičius, director general of the Lithuanian Confederation of Industrialists.
For their part, worker representatives said the agreed size could be changed unless it is increased
“We have to follow the agreed formula and we do not understand why we have to consider this issue today, when the previously agreed conditions are not met,” said Inga Ruginienė, president of the Lithuanian Trade Union Confederation.
According to data from the Department of Statistics, in the third quarter of 2020, the unemployment rate in Lithuania reached 9.3 percent.
According to the formula
For several years, the MMA in Lithuania has been calculated according to the formula: the forecast of the average salary for that year is multiplied by the coefficient obtained by calculating the average of a quarter of the countries of the European Union with the MMA / VMU ratio highest.
According to the representatives of the Lithuanian Trade Union Confederation, according to such a formula, the MMA in 2021 should reach 663 euros, and the economist Justas Mundeikis indicates the amount as high as 682 euros.
“Calculating the average of the five EU countries with the highest proportion of MMA and VMU, the coefficient is 0.481. The Vytautas Magnus University will reach 1417.4 euros this year, we obtain that the MMA of next year should reach: 0.481 x 1417.4 = 681.8 euros, and rounded – 682 euros “, he wrote in a comment published this Tuesday.
The uncertainty about the results of the formula is due to the different sizes of VMU used. Some depend on payment with bonuses and bonuses, others without them.
Currently, MMAs in Lithuania are 607 euros “on paper” or about 447 euros “on hand”. Increasing it to € 642 and taking into account changes in the amount of tax-free income, employees should receive at least around € 468, that is, around € 20 more (assuming no savings in the pension fund) .
According to Sodra, in October he earned up to 607 euros per month for 137.89 thousand. employees, and between 607 and 700 euros, another 105.62 thousand.
The size of the MMA is determined by a government resolution. The new Government of Ingrida Šimonytė has not yet mentioned plans to change the size established by the previous Government of Saulius Skvernelis.
“It would be good for us to be able to comply with those agreements,” Monika Navickienė, Minister of Social Security and Labor, said at the beginning of the Tripartite Council meeting on Tuesday.
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