“Lithuania’s strategic goal is to equalise the tax-exempt amount of income with the minimum salary. The question is in what period of time. Lately, when discussing the minimum salary, a rational line of thought prevailed that the tax-exempt amount of income should be raised by as much as the minimum salary or even somewhat more so that it would catch up. Otherwise, the tax-exempt amount of income will never catch up with the minimum monthly salary,” the president’s adviser told the radio Žinių Radijas on Thursday.
Therefore, he said that in 2023 the tax-exempt amount of income should be raised from EUR 540 to at least EUR 640.
“If based on the agreed formula we see that the minimum salary should rise by 18-19%, then, in this case, the tax-exempt amount of income should grow by at least EUR 100 next year,” said Augustinavičius.
In June, the Bank of Lithuania suggested raising the minimum monthly salary from EUR 730 to EUR 867.67, which accounts for an 18.9% increase.