On March 17, during a meeting of the Lithuanian Tripartite Council (TT), discussions began on a new methodology for calculating the minimum monthly wage (MMW) starting from 2027. Trade union representatives are sending a clear message: any “technical” adjustments to the formula must not become a tool to slow down wage growth.

While employers emphasize that the MMW has been rising too rapidly (it increased by about 80% from 2020 to 2026, reaching 1,153 EUR), employee representatives stress that Lithuania is still catching up with its neighbors, and the real cost of living remains tight.

No agreement on the MMW was reached during the meeting, and the employers’ side proposed moving the issue to a bilateral format, with negotiations only between trade unions and employers.

According to the employers’ proposal, the MMW from January 1 of next year would be based on the previous year’s average wage (AW), excluding bonuses and additional payments, with only the projected growth for the current year added. It is also proposed to change the target ratio between the MMW and AW—from aligning with the highest-performing European Union countries to the overall EU average (within a 45–50% range).

Dalia Jakutavičė, acting head of the Lithuanian Trade Union Confederation (LPSK), warns that the proposed changes could fundamentally alter the direction of the MMW. According to her, attempts to shift the benchmark from the highest EU standards toward the “average” are dangerous.

“Adjustments to the formula may appear to be technical refinements, but their economic impact is clear—the growth of the MMW would slow, and its link to rising wages would weaken,” Ms. Jakutavičė emphasized.

According to her, if the lowest wages grow more slowly, not only individual households would suffer, but the entire national economy would be affected, as domestic consumption would weaken.

Meanwhile, Artūras Černiauskas, chairman of the Lithuanian Railway Workers’ Trade Union Association, points to the gap between statistics and real life. Although Lithuania’s MMW growth looks impressive in macroeconomic charts, the actual incomes of workers still do not provide a sufficient sense of security.

In Mr. Černiauskas’s view, decisions on the MMW cannot be based solely on mathematical formulas or business competitiveness indicators—they must reflect the real situation of workers and their purchasing power.