The government has given its agreement: the minimum wage will increase to 924 euros next year

Social Security and Labor Minister Monika Navickienė claimed that if the proposal is approved, 709 euros will be “in the hands” of the MMA. At the government meeting, she was pleased that the size of the MMA had been agreed in the Tripartite Council.

“We have two good news. One good news is that with this project we will increase the income of the lowest paid Lithuanian residents, and the other good news is that for the first time after a five-year break we will agreed on what the size should be,” Mr. Navickienė said.

Such a proposal was approved by the Tripartite Council in early May. At the same time, the council proposed to increase the amount of non-taxable income (NPD) by 20%, in which case the NPD from 2024 would be 751 euros. However, legislatively, parliament will be able to vote on the NDP and do so in the fall, during deliberations on the 2024 election. budget.
Finance Minister Gintarė Skaistė said in mid-May that the MMA issue would only be discussed at the government meeting when a consensus on tax reform was reached.

According to her, this is because the Trilateral Council has found a solution linking the growth of the MMA and the NDP, and the NDP is defined in the Personal Income Tax (PIT) Bill, which is linked. to tax reform.

The tax reform bill presented by the government indicates that one of the essential objectives is the planned unification of the NPD and the MMA by 2028. In that year, it is estimated that the NPD and the MMA could reach almost 1200 euros .

It is estimated that next year the decision will cost about 200 million. euros, and until 2028 its burden on the state budget would reach 573 million. euros.

From 2023 the start of the MMA has increased to 840 euros, or 15%. from 730 euros previously, the minimum hourly wage is increased to 5.14 euros instead of 4.47 euros set last year. The minimum hourly wage has increased by 0.67 euros, or also around 15%. NPD from 2023 January 1 In Lithuania – 625 euros.

According to Sodros in May, those who earned less than 840 euros before taxes (before the current MMA) have more than halved in one year. In March, there were 9% of all people insured, up from 22% last year. Last year, until MMA (which reached 730 euros in 2022) gained 9.9%. workers.

Source: The Delfi





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