2024-07-30 02:54:15
SADM submitted a new proposal to the Government regarding the increase in the minimum monthly wage (MMA) from next year. According to this proposal, from 2025 January MMA should increase by 12 percent. and reach 1038 euros. LVK notes that this new calculation was not discussed in the Trilateral Council, where the social partners have already submitted their conclusions.
According to them, the employers, based on the calculations and proposal of the Bank of Lithuania (LB), agreed on 10%. of MMA growth (1016 euros). LB’s proposal was based on caution, emphasizing that too fast an increase in MMA could harm Lithuania’s competitiveness. Therefore, the arguments of the new proposal presented by SADM are not clear to the business.
In the opinion of LVK, even in the conclusions of the Tripartite Council, the growth of MMA fixed (10%) would cause difficulties for some businesses. First of all, it would affect small and regional businesses, because these companies are much more dependent on MMA. The transport and service sectors would also feel more pressure. Therefore, an even greater growth of MMA could lead to undesirable consequences for some Lithuanian businesses.
“Although wage growth contributes to consumption within the country, for an exporting country like Lithuania, their excessive growth can be harmful. Rapidly rising wages adjust the competitiveness of exporting businesses.
According to the data of the Organization for Economic Cooperation and Development, in the last five years, according to the growth rate of MMA, Lithuania was in the lead and surpassed a considerable number of neighboring countries. Therefore, SADM’s proposal to increase MMA growth faster must be considered carefully – there is a lack of clarity on what arguments the ministry is relying on when proposing a higher MMA growth than the weighted LB proposal, said LVK president Andrius Romanovskis. –
In the tripartite council, we discussed the growth of MMA based on estimates provided by several institutions. SADM’s calculations were not there, so their proposal that appeared after the conclusion of the social partners raises questions – is it based on economic calculations, or is it simply a desire to score political points before the elections?”
According to him, the business accepted the MMA growth proposal presented by LB because it best reflected the economic realities. LB’s expert opinion on this issue is important, so the business wants to hear his position on the new offer as well.
2024-07-30 02:54:15