Čibirienė: Economic risks extend beyond minimum wage hike

The Lithuanian government has approved an 8% increase in the minimum monthly wage (MMA) set to take effect next year. This decision aims to adjust income levels, but experts caution about its broader economic implications.

Daiva Čibirienė, president of the Lithuanian Accountants and Auditors Association (LBAA), expressed skepticism that the wage hike alone will effectively address income inequality. She argued that the increase might not be sufficient to bridge the gap between high and low earners.

Furthermore, Čibirienė highlighted potential risks associated with the upcoming full implementation of the EU Transparency Directive. This directive, set to become fully operational next year, is expected to introduce new compliance requirements and potential economic challenges for businesses, adding another layer of complexity to the economic outlook.

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This will not reduce income inequality, and the EU Transparency Directive, which will fully enter into force next year, will also pose additional risks.