Expert: The salary in Lithuania is one of the lowest in the European Union

“The economy is growing, average wages are growing, therefore the minimum wage has to be regulated. Because MMAs are given primarily to people who generally have no qualifications, they do not pressure the employer to increase their salary. That is why state intervention is necessary and it is good that it is being done, ”R. Lazutka told LNK television.

Although employer representatives are not very supportive of such an increase in MMA, the economist believes that companies would not make a big difference, as the country has a large shadow economy.

“You can roughly say that MMA should account for about 50 percent. Median salary, but it should be noted that the median salary in Lithuania is slightly reduced due to the prevailing shadow. People get additional income from business: cars, as well as a reward paid in envelopes. That is, I think, even if the minimum wage exceeds 50 percent. of the average wage, there would be no pressure on entrepreneurs, companies, etc. “, – says the economist.

According to R. Lazutka, it should be noted that labor productivity in Lithuania is higher than in other European Union countries, and wages are one of the lowest. Only Romania, Bulgaria and Hungary receive even lower wages.

“We need to have a starting point to measure the growth of wages and productivity. There was a long time after the crisis of 2008, when wages practically did not rise, but labor productivity increased. Now the opposite is true, but labor productivity in Lithuania it is still relatively higher compared to other countries and wages are lower. In terms of wages and taxes, Lithuania is the fourth largest country in the European Union: labor costs are cheaper and labor costs are more only in Romania, Bulgaria and Hungary. Therefore, entrepreneurs could not even complain that working in Lithuania is too expensive for them, “says the professor.

R. Lazutka also denies the often-heard view that living in the province is cheaper than in the big city. The economist doesn’t see much of a difference and argues that MMA certainly shouldn’t depend on where you live.

“I would not support the idea that living in the city is more expensive. This opinion prevails, because people who live in the province can bring firewood from the barn or pour water from a well, and in the city there are no such opportunities and you have to pay for all services. But it should also be noted that in the city and the quality of life is different. Yes, the people of the city spend more money, but that money is not spent in vain, they receive services for it. On the contrary, to ensure a similar quality of life in both urban and rural areas, those costs would be similar, ”the economist told LNK News.