Lithuania’s Minimum Wage Debate Highlighted by Dalia Jakutavičė

Economist Dalia Jakutavičė argues that Lithuania should compete on higher value rather than lower wages, urging a shift away from calls to keep the minimum monthly wage (MMA) low. She notes that the 2017 tripartite agreement between the government, employers and unions set a target of the MMA reaching 45‑50 % of average earnings, a goal later enshrined in an EU directive urging member states to ensure adequate minimum pay.

Jakutavičė points out that recent data show Lithuania’s wage‑to‑average‑salary ratio remains below EU recommendations, but the country has seen rising wages, increasing employment and one of the lowest unemployment rates in the EU. She warns that reducing the minimum wage in low‑pay regions would not spur growth, as those areas already face population decline and investment shortages. Instead, she calls for continued, gradual MMA increases aligned with European standards to support sustainable economic development.