Trilateral Council Begins Discussions on 2027 Minimum Wage

Delfi, a prominent Lithuanian news source, reports on crucial discussions surrounding the minimum wage (MMA) for 2027. The current MMA stands at 1153 euros gross, representing an 11.1% increase this year, funded by 37.3 million euros from the state budget. The established formula, designed to ensure the MMA remains between 45-50% of the average wage (VDU) and aligns with EU benchmarks, is at the heart of the debate.

Employer representatives have voiced concerns, suggesting that incorporating projections of future VDU growth into the MMA calculation is flawed. They argue this practice creates an artificial demand for wage increases rather than reflecting genuine market conditions. Their proposal to exclude these future projections and maintain the existing MMA-VDU ratio, while considering a five-year EU average, aims to moderate the pace of MMA increases. This perspective reflects a common concern among businesses about the potential impact of rapidly rising labor costs on competitiveness.

“

Tai yra klaidinga – taip VDU augimas, anot jų, iššaukiamas priverstinai, o ne pagal rinkos situaciją.

Conversely, trade union representatives firmly oppose these suggestions. They contend that altering the formula in the way employers propose would inevitably lead to slower MMA growth, potentially hindering efforts to improve living standards for low-wage workers. From the unions' viewpoint, the current formula, despite its complexities, is essential for ensuring that the minimum wage keeps pace with economic progress and provides a fair income. The ongoing debate underscores the perennial tension in Lithuania, as in many countries, between the need to support workers and the imperative to maintain a competitive business environment.

“

Tai prisidėtų prie mažesnio MMA augimo.