VILNIUS – The Lithuanian government on Wednesday approved in principle the Social Security and Labor Ministry's proposal to raise the minimum monthly wage by 88 euros to 730 euros from January 1, 2022.
Social Security and Labor Minister Monika Navickiene told the Cabinet that the proposal was in line with the Finance Ministry's updated economic development projections.
"The number of people who have acquired immunity from COVID-19 is growing, there are almost no restrictions on economic activity, the number of unemployed is decreasing and the number of jobs is growing, and economists are forecasting rapid economic growth," she said in a statement.
The ministry says this would be one of the most significant minimum wage increases in a decade.
Earlier proposals called for raising the minimum wage by 61 euros, or 9.5 percent, to 703 euros.
The proposal is expected to the submitted to the Tripartite Council, which brings together the government, employers and trade unions, on Friday.
The Cabinet will likely adopt its final decision in October before sending next year's draft budget to the parliament for approval.
The minimum monthly wage was last increased last January, to 642 euros (before tax), from 607 euros.
The Lithuanian Labor Code allows paying the minimum wage only for unskilled labor.