Lithuania to Raise Minimum Monthly Wage From Next July
Lithuania’s government plans to raise the minimum monthly wage by 6.3 percent from next July, three months ahead of a general election, Prime Minister Andrius Kubilius said.
The monthly wage will rise to 850 litai ($337.4) from the current 800 litai, Kubilius told journalists in Vilnius today.
The increase on the minimum paycheck, the lowest in the Baltic region, “will have a neutral effect on the budget deficit,” Giedre Balcytyte, spokeswoman for the Finance Ministry, said by phone. Average wages are expected to rise 5.5 percent next year, the ministry estimates.
“This seems a reasonable plan, going hand in hand with the developments in the labor market,” said Vilija Tauraite, a Vilnius-based economist with SEB Bank AB. “It will help increase consumer power and compensate for rising prices. Yet you can’t miss that it does fall nicely along with election campaign.”
Lithuanians will head to the polls in October 2012.
Estonia’s minimum wage is 278 euros ($380.8), while minimum paychecks in Latvia stand at 200 lati ($386).
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