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Lithuanian gov't raises minimum wage to 380 euros per month

Xinhua, June 23, 2016 Adjust font size:

Lithuanian government decided on Wednesday to raise the minimum monthly wage up to 380 euros (430 U.S. dollars) as of July.

The minimum monthly pay is to rise by 30 euros, or by 8.6 percent. The minimum hourly pay will increase by 0.19 euro cents to 2.32 euros.

"It's already the fifth considerable minimum monthly pay rise since 2013, during the work of our government," the head of the social democrat led center-left ruling government Algirdas Butkevicius was quoted as saying in a press release.

Butkevicius noted that the government has already set aside additional reserves of 21.1 million euros needed for the minimum pay rise.

The government's decision to increase the minimum pay wasn't broadly welcomed by the businesses.

Lithuania's Minister of Social Security and Labor Algimanta Pabedinskiene admitted to local journalists on Wednesday that employers had approved the decision only partially at the country's Tripartite council. The body consists of representatives from trade unions, business organizations and the government.

Economists warn the rapid minimum wage rise may harm the competitiveness of the Lithuanian economy. Last year, real wage growth in Lithuanian economy was 6.1 percent.

Recently, the Bank of Lithuania warned that wage growth in the country had outpaced labor productivity for three years and "may jeopardize economic growth."

Despite the latest rise, the minimum monthly wage in Lithuania remains one of the lowest in the EU. Endit