Lithuania's new government boosts minimum wage

By bne IntelliNews December 20, 2012

bne -

Acting swiftly on campaign promises, Lithuania's new government has pushed through a 17.6% increase in the minimum wage. The hike is the second for the subsistence level in the last 12 months, as the harsh austerity of the last few years is eased.

Starting in January, the minimum wage will rise from LTL850 to LTL1,000 (€289), the new government announced in a statement, according to Bloomberg. "We're starting to implement the pledges given to voters," Prime Minister Algirdas Butkevicius, who took office last week with his four-party cabinet, said in the statement.

The last hike, from LTL800, was implemented in July by the former right-wing government in a bid to ease the electorate's weariness over the tough austerity followed since 2009. However, that could not save it from defeat at the October ballot, with voters plumping for the looser purse strings promised by the Social Democrats. However, the new PM has said the government will remain committed to continued fiscal consolidation, and is seen as having limited space to relax fiscal consolidation efforts.

The change in the minimum wage will improve living standards for about 200,000 workers, including about 50,000 public sector employees, the government said. A working group, including industry representatives, will report by the end of January on its study of suggestions that a lower minimum-wage requirement could be applied to small and mid-sized companies so that they aren't tempted to fire workers or pay wages illegally, the government statement said.

Related Articles

Latvia’s Citadele Bank pulls IPO

bne IntelliNews - Latvia's Citadele Bank has postponed its initial public offering (IPO), citing “ongoing unfavourable market conditions”, the bank announced on November 11. The postponement ... more

BOOK REVIEW: “Europe’s Orphan” – how the euro became a scapegoat for policy ills

Kit Gillet in Bucharest - The euro, conceived as part of a grand and unifying vision for Europe, has, over the last few years, become tainted and often even blamed for the calamities that have ... more

Mystery Latvian linked to Scottish shell companies denies role in $1bn Moldova bank fraud

Graham Stack in Berlin - A Latvian financier linked to the mass production of Scottish shell companies has denied to bne IntelliNews any involvement in the $1bn Moldovan bank fraud that has caused ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss