2012-05-16 11:02

Lithuanian Prime Minister links minimum wage rise tol labor relations liberalization

Lithuanian Prime Minister Andrius Kubilius reiterated the government's proposal to raise the minimum monthly salary by 50 litas (EUR 14.5) to 850 litas in July, saying that a further 50-litas increase, which employers and trade unions are calling for, could be possible at the start of next year, but only if labor relations are liberalized.
Pinigai
money / BFL nuotr.

"We proposed to increase the minimum salary in two stages. (The first stage would be) by 850 litas starting 1 July. If legislation changing labor conditions were adopted in the meantime, we would then see a possibility of raising it to 900 litas on 1 January," he told Lithuanian Radio on Tuesday.

Before the minimum salary can be raised to 900 litas, conditions must be put in place to encourage businesses to create more jobs, Kubilius maintains.

"We are concerned about job growth and about conditions that would allow businesses to create more jobs. Jobs do not emerge on their own, or just because the finance minister or the prime minister orders that. Jobs emerge when businesses are capable of creating more of them. And that growth agenda, which is much talked about in Europe in the wake of the French presidential election, must first of all be linked to the putting in place of conditions that would enable businesses to grow and create new jobs," he said.

The Tripartite Council, which brings together representatives of the government, employers and trade unions, in April proposed to the government that the minimum salary be raised by 100 litas to 900 litas. President Dalia Grybauskaitė has also proposed to increase the minimum salary to 900 litas.

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