Irena, who earns 500 euros a month: I don’t know what will happen next

Irena, who earns 500 euros a month: I don’t know what will happen next
Irena, who earns 500 euros a month: I don’t know what will happen next

“It’s difficult, especially when prices have risen now. I don’t know what will happen next,” said the woman.

Irena believes that the salary for such a job should be at least 1 thousand. euros. The only problem is that no one pays that much.

“At my age, I don’t know if I would find a job,” Irena continued.

Algimant’s experience is similar. Manages the environment of the city of Panevėžys, works eight hours a day, and receives 537 euros in his hands.

“That’s all you’re trying to do,” said Algimantas.

The Ministries of Social Security and Labor and Finance propose to raise the minimum monthly wage to 110 euros from January. Therefore, instead of the current 730 euros on paper, you have to pay 840 euros.

“For me, 100 euros is already money,” said Irena.

It is proposed to increase the amount of non-taxable income (NPD). This is the part of the salary from which the state does not calculate personal income tax. Now NPD stands at 540 euros, and would rise to 625 euros. The minister calculates how much a person’s income would increase as a result of both decisions.

“A person’s salary would increase by 83.5 euros. We would achieve this effect both with an increase in the minimum monthly wage and with an increase in NPD. It would be possible for a person’s income to reach 633 euros,” said Minister of Social Security and Labor Monika Navickienė.

The entire LNK report is in the video:

These proposals will be presented at the tripartite council at the end of September. Until now, employers and employees have not been able to come to an agreement on their own. Industrialists aim for a minimum wage of 800 euros on paper, trade unions – 88 euros more.

“We don’t adhere to the agreed formulas, because it is agreed between 45-50 percent, so that the ratio is maintained, so we have fallen below 45 percent.” limits”, said Dalia Yakutaviče, the chairperson of the Federation of Industrial Trade Unions.

The minimum wage is 26 thousand. or less than 2 percent of all people working in the country.

Economists have no doubt that when raising the lowest earners, employers will also have to raise those who earn a little more.

“There are quite a few employees who earn 10-20 percent. more than the minimum wage. When the minimum wage rises by 15 percent, all companies must preserve differentiation and raise wages for other employees as well,” said economist Nerijus Mačiulis.

At my age, I don’t know if I would find any work.

NPD will be relevant only for those earning up to the average wage.

“NPD would increase to 1,926 euros for people who receive the planned average salary until next year,” said Finance Minister Gintarė Skaistė.

The Government will decide on the minimum wage. So far, it has not made a decision, and the Seimas will discuss the NPD with next year’s budget. It is estimated that due to the increase in NPD, the state budget would lose 164 million. euros.

“I think it is not the best decision. The government took the position of employers rather than employees,” said Seimas member Algirdas Sysas.

As a result of raising wages, some companies may have to either raise prices or go bankrupt altogether.

“We will see rising labor costs being passed on to final prices for consumers, and inflation will be fueled again.” At the same time, an even worse trend is the increase in the unemployment rate,” said N. Mačiulis.

The government believes that the impact on inflation will be small, only 1 percent. The Bank of Lithuania also stated earlier that the impact on inflation will be small.

The article is in Lithuanian

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