PM on proposed NPD increase: We must evaluate responsibly

Lithuanian tripartite partners have reached an agreement to increase the minimum monthly wage (MMA) by 7.19% for the upcoming year. However, the government has indicated it will not support this proposal, opting instead to suggest its own figures for the MMA. The partners also proposed a 4% increase to the non-taxable income (NPD), which the government is also hesitant to approve.

Prime Minister Inga Ruginienė stated that while the government prioritizes income growth, any tax changes must be evaluated responsibly to maintain economic stability and job competitiveness. She emphasized the need for sustainable solutions that offer real benefits to citizens. The Finance Vice-Minister noted that implementing the partners' proposal for the NPD increase would reduce budget revenues by approximately 40 million euros next year.

Starting next year, a measure previously passed by the Seimas, based on a presidential proposal, will grant an additional NPD of 87 euros per child per month, or 1,044 euros annually, to parents raising children. This year, the NPD stands at 747 euros and applies to employees earning up to one MMA. The current MMA is 1153 euros before taxes, with the government confirming the final figure annually as part of the state budget.