Government left to decide on minimum wage

Trade unions and government representatives suggested raising the minimum wage by around 10 percent to 607 euros before tax. Meanwhile, employers proposed increasing it to 580 euros, from the existing 555 euros before tax.

"We have fixed positions of 607 euros from trade union and government representatives, and 580 euros from employers, with the latter definitely not calculated based on the set formula, meaning that the government will have to make the decision on June 15, pursuant to the Labor Code," Vice Minister of Social Security and Labor Egle Radisauskiene told journalists after the Council meeting on Tuesday.

Trade unions say 607 euros is the minimum amount negotiations could start from. Meanwhile Sigitas Gailius, head of the Panevezys Chamber, of Commerce, Industry and Crafts, representing employers, believes it would be enough to raise the minimum wage to 45 percent of the average salary in the country.

"Since our economy is slightly overheating, we believe about what will happen next, with sings of a possible crisis, so we suggest keeping the minimum threshold of 45 percent of the average salary," he said.

Last year, the Tripartite Council also failed to reach agreement on raising the minimum wage as of 2019, leaving the government to approve this rate.