The minimum wage in Lithuania could rise to 704 euros



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The issue of establishing the MMA in 2022 was discussed in a Tripartite Council made up of government, employer and union representatives on Tuesday.

“It just came to our notice then. So that we can attend the next meeting with certain positions,” said Inga Ruginienė, president of the Lithuanian Trade Union Confederation.

For his part, K. Tomaševičienė warned that the pandemic did not slow down the growth of wages in Lithuania. In 2020, they grew about 10 percent. and this has been registered in both the public and private sectors.

“Of course, there is a risk that the rise in MMA will make some people ‘more expensive’ and make it difficult for them to find work. We are currently conducting a study on this issue at the Bank of Lithuania,” he said.

Previously it was agreed that the MMA in Lithuania should be determined according to the formula: the average salary expected 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 relationship between the MMA and the highest average salary. .

This ratio should be between 0.45 and 0.5, and EU countries are selected on the basis of data from the last 3 years.

“Currently, we apply the average 48.1 percent,” said K. Tomaševičienė, adding that according to the formula, in 2022 the MMA could reach 703.56 euros “on paper.”

If there are no changes in the tax system, it would mean about 504 euros “in hand”, respectively 36 euros more than this year.

Although the formula was intended to depoliticize the MMA determination process, there is still disagreement about the different sizes of VMU used. Some depend on payment with bonuses and bonuses, others without them.

According to Sodra, in March MMA or less received 145,870 employees in Lithuania.

The size of the MMA is also relevant for the self-employed, since it pays mandatory contributions to health insurance (6.98% of the MMA monthly).

It is also important for workers who receive daily assignments, such as truck drivers. According to the established procedure, income tax on daily allowances can be avoided by paying a salary, which is calculated as: MMA x 1.65.

According to Sodra, in March, 76.7 thousand people worked in Lithuania. heavy truck and truck drivers. It was the profession with the most employees.

The MMA was last increased in January from € 607 to € 642.

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