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Rise in minimum wage to drive up prices for services in Lithuania

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Irmanto Gelūno / 15min nuotr. / Pinigai
Šaltinis: BNS
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Some building administration and cleaning services companies in Lithuania have already informed their customers that they will have to raise bills after the minimum monthly wages is raised to 850 litas (EUR 246.4), from the current 800 litas, starting next month, the daily Lietuvos Rytas reports on Thursday.

Employers who pay minimum wages to their employees say that they are forced to increase prices. Some 20.8 percent of the country's working population receives minimum wages.

People living in buildings administered by Corpus A have received a note from the administrator saying, "This (the rise in minimum wages) will have a great impact on our costs. Therefore, we are forced to increase prices for our services."

However, Jonas Guzavičius, vice-president of the Lithuanian Industrialists' Confederation, doubts if these employers are sincere.

"People are leaving the country because employers offer to pay them a net wage of 600 litas," he said, adding that the minimum monthly pay in Lithuania should be at least 1,000 litas.

BNS
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