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Photo by Vladimir Ivanovo (V)
Next year, the monthly minimum wage (MMA) will increase by almost 6% from the current 607 euros to 642 euros. Toknutarim was approved by the Government. At the same time, it found that if the economic situation deteriorated before the end of the year, the decision could be reversed.
Linas Kukuraitis, the Minister of Social Security and Labor, presented a draft resolution at a government meeting on Wednesday. January 1 the minimum hourly wage is set at EUR 3.93 and EUR 642 (before pay) or around EUR 460 in the hands of MMA. Therefore, the minimum wage next year will be 35 euros or approximately 5.7% more than last year.
The Cabinet of Ministers adopted a resolution without much discussion.
Recommend to the social partners to set amounts higher in collective agreements than the amounts of the hourly minimum wage and the monthly minimum wage established in this resolution, is established in the resolution.
The resolution was adopted by the Government in the session in which the draft budget for next year was approved and presented to the Seimas for its consideration.
Andrius Romanovskis, president of the Lithuanian Business Confederation, who participated in the meeting, urged the government not to rush to increase the MMA, as the situation remains uncertain. L. Kukuraitis agreed that there is a lot of uncertainty, but noted that in December, when the Ministry of Finance presents an update of the macroeconomic forecast for next year, the new Government will probably be able to address the issue of the minimum wage and review it in light of the situation.
Prime Minister Saulius Skvernelis emphasized that the government must adopt a resolution on increasing the MMA now: because it must be done in conjunction with the budget bill. But December will return to this topic.
[infogram id=”e70064be-4d4c-4b26-b76b-170e7517c707″ prefix=”te0″ format=”interactive” title=”Minimali mnesio alga 2021 m.”]The decision to increase the MMA in 2021 is based on the Bank of Lithuania’s calculations of what the minimum wage might be under current economic conditions.
While the decision to increase the MMA states that the decision will be made in accordance with the recommendations of the Trials Council, the Council, which brings together representatives of the Government, employers and employees for two weeks, did not reach a general agreement on the matter. .
The different opinions of the members of the Council of Trials on the increase of the MMA next year were transmitted to the government, leaving it to the Cabinet of Ministers to decide how to proceed.
Profsjung representatives demanded that MMA be increased from € 56 to € 663 (before tax) in 2021, at which point employer representatives spoke in favor of cooling MMA for at least half a year.
At that time, government representatives in the Council of First Instance agreed with the Bank of Lithuania’s calculations that next year the MMA could increase by 35 euros and reach 48.1% of the average salary (VMU). The proportion is now 47.5%.
The Trial Council has decided that MMA should be 45 to 50% of the average salary.
The Ministry of Finance recently announced that the average pre-tax salary in the country will grow 6.5% this year and in 2021. Juice growth rate up to 3.3%.
currently MMA is 607 Eur (before enrollment), 437 Eur. It has increased by approximately 10% since January of year i.
there are currently around 130,000 moni with incomes reaching MMA or less.
According to the Labor Code, MMA can only be paid for unskilled work.
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