Minimum Wage Fixing Convention, 1970 (No. 131) - Lithuania (Ratification: 1994)

Replies received to the issues raised in a direct request which do not give rise to further comments (CEACR) - adopted 2019, published 109th ILC session (2021)

The Committee notes the information provided by the Government, which answers the points raised in its previous direct request and has no further matters to raise in this regard.

Direct Request (CEACR) - adopted 2012, published 102nd ILC session (2013)

Article 3 of the Convention. Criteria for determining the minimum wage. The Committee notes the Government’s indication that the national minimum wage rate was not increased during the period 2008–12 owing to the difficult economic and financial situation in the country. It was only in June 2012 that the Government approved an increase of the minimum monthly and hourly rate to 850 and 5.15 Lithuanian litas (LTL) respectively (approximately €246 and €1.50), which represents a little more than 6 per cent increase in four years.

The Government states that this moderate increase is in line with the country’s macroeconomic situation and financial prospects, and that unemployment levels should not increase because of this decision. The Government also refers to a pending amendment to section 187 of the Labour Code, which will provide for the annual readjustment of the minimum wage either by the Government upon proposal of the Tripartite Council or by the Parliament, based on the average inflation rate in the previous year and other factors. The Committee requests the Government to keep the Office informed of all further developments concerning the amendment of section 187 of the Labour Code and the possible indexation of the minimum wage as provided for in section 190 of the Code. The Committee also requests the Government to specify the legal provision(s) which set out the socio-economic criteria to be used in revising the minimum wage as required under Article 3 of the Convention.

Article 5 and Part V of the report form. The Committee notes that according to the information provided by the Government, around 15 per cent of private sector employees are currently paid at the minimum wage rate. It also notes that the minimum wage in Lithuania is among the lowest in the European Union, representing 38 per cent of the average wage in the country, and that it has lost over the last few years much of its purchasing power due to rising inflation. The Committee would be grateful if the Government would continue to supply up-to-date information on the practical application of the Convention, including, for instance, comparative statistics on the evolution of the minimum wage rates and economic indicators such as the inflation rate; the approximate number of workers or proportion of the country’s workforce remunerated at the minimum wage rate; copies of activity reports or surveys undertaken by the Tripartite Council; and labour inspection results concerning compliance with the minimum wages in force.

Direct Request (CEACR) - adopted 2007, published 97th ILC session (2008)

The Committee notes the information provided in the Government’s report and the attached documents.

Article 2, paragraph 1, of the Convention. Minimum wage system. The Committee recalls its previous comment in which it had noted that the minimum wage rates had not been adjusted for several years due to the difficult financial situation. The Committee notes with interest that the minimum wage system has now resumed its proper function, the minimum monthly and hourly pay rates being revised on an annual basis by government resolution, taken upon the recommendations of the Tripartite Council, in accordance with section 187 of the Labour Code of 2002 which superseded the Wages Act of 1991. The Committee notes that the minimum monthly and hourly rates are currently set at 700 and 4.19 litas (approximately 203 and 1.2 euros) respectively, which represents an increase of 27 per cent in two years. The Committee requests the Government to keep it informed of all future developments in this respect, especially with regard to the possible indexation of the minimum wage to which the Government had referred in its previous report.

Article 4. Consultations with the social partners. The Committee notes the information provided by the Government according to which the social partners submit annually proposals for the determination of minimum wage levels which are then analysed by the tripartite Standing Commission on remuneration for work before a final recommendation on a new amount is transmitted to the Tripartite Council. The Committee also notes that a new tripartite agreement was concluded in June 2005 with a view to pursuing tripartite cooperation in various areas of employment and social protection, including the determination of the minimum wage. The Committee would appreciate receiving a copy of the 2005 Agreement on tripartite cooperation, and additional explanations regarding the possibility of signing tripartite agreements on minimum wages in case of necessity, to which reference was made in the Government’s report.

Article 5 and Part V of the report form. The Committee notes the statistical information concerning the number of inspection visits and the infringements observed in relation to the payment of the statutory minimum wage in the period 2001–06. The Committee would be grateful if the Government would continue to supply up to date information on the practical application of the Convention, including for instance comparative statistics on the evolution of the minimum wage rates and economic indicators such as the inflation rate; the approximate number of workers or proportion of the country’s workforce remunerated at the minimum wage rate; copies of activity reports or surveys undertaken by the Tripartite Council, the tripartite Standing Commission on remuneration for work or other bodies responsible for matters related to wage policy and minimum wage fixing; and labour inspection results concerning compliance with the minimum wages in force.

Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

The Committee notes the Government’s report and the attached documentation furnished in response to its previous comment.

Article 2, paragraph 1, of the Convention. The Committee notes the Government’s indication that the minimum monthly and hourly wage rates are currently fixed at 430 and 2.53 litas respectively and that these rates have not been increased since 1999 in view of the difficult financial situation. It also notes that, according to the Tripartite Cooperation Agreement of 29 May 2002, signed by the Government, trade unions and employers’ organizations, it has been agreed that priority action should be taken to improve the system of labour remuneration by preparing a strategy for the indexation of the minimum wage. The Committee requests the Government to keep it informed of any developments in this regard. It would also appreciate receiving up-to-date information on the evolution of indicators such as the national average wage or the consumer price index in recent years to better evaluate the adequacy of current minimum wage levels in ensuring a decent standard of living for all workers and their families.

Article 5 and Part V of the report form. The Committee notes the statistical information regarding the results of inspection visits carried out in the period 2000-01, including the number of infringements observed and penalties applied. It also notes the Government’s statement that, as regards the application of section 41-4 of the Code on Administrative Offences, as last amended by Act No. VIII-1486 of 21 December 1999, the Government may temporarily exempt certain enterprises experiencing serious financial difficulties from the imposition of sanctions for breach of the laws and regulations concerning the payment of wages. Recalling that the Convention does not provide for any exceptions to the principle of the binding force of minimum wages and that it calls for the application of effective sanctions to ensure compliance with its provisions, the Committee asks the Government to supply additional information on this point, specifying the number of exemptions granted so far as well as the approximate number of workers concerned by any such measures. The Government is also requested to continue to provide general information on the application of the Convention in practice, such as the minimum wage rates in force, available data on the number and different categories of workers covered by minimum wage provisions, and any other particulars bearing on the operation of the minimum wage-fixing machinery.

Direct Request (CEACR) - adopted 2000, published 89th ILC session (2001)

The Committee notes the information supplied by the Government in its report.

Articles 1 and 4 of the Convention.  The Committee notes the Government’s indication that in 1999 the Ministry of Social Security and Labour developed the principles and the procedure for the determination of minimum wages. According to the system of minimum wage fixing so established, proposals for the determination of the amount of minimum wage are submitted by the Permanent Labour Remuneration Committee of the Tripartite Board of the Republic of Lithuania which consists of representatives of trade unions, representatives of employers’ organizations, and government officials of the Ministry of Social Security and Labour, the Ministry of Finance, the Ministry of Economics and the Ministry of Agriculture. The Committee further notes that on 11 February 1999 a tripartite agreement was signed by the Government, trade unions and employers’ organizations regarding the minimum monthly salary and the minimum wage rate per hour, and that a similar agreement fixing or adjusting the minimum wage has to be signed each year before 1 December. The Committee requests the Government to supply a copy of both the 1999 establishment of the principles and the procedure for the determination of minimum wages, and of the tripartite agreement of 11 February 1999.

Articles 2 and 5 of the Convention and Part V of the report form.  The Committee notes that according to the 1999 report of the State Labour Inspection, violations of the labour legislation were detected in 70 per cent of inspected enterprises, while infringements of the Law on Wages were observed in 30 per cent of inspected enterprises, including delayed payment or non-payment of the minimum wage, bonuses and other allowances. The Committee draws the Government’s attention to the need to adopt the necessary measures to establish appropriate sanctions in the event of infringements of standards respecting minimum wages with a view to guaranteeing workers the payment of such rates. In this regard, the Committee notes that by Act No. VIII-1486 of 21 December 1999, the Government revised the administrative code setting higher fines for breach of the laws and regulations concerning the calculation and payment of labour remuneration. The Committee requests the Government to forward a copy of the aforementioned Act.

The Committee asks the Government to keep it informed of any future developments on the points raised above.

Direct Request (CEACR) - adopted 1998, published 87th ILC session (1999)

The Committee notes the information provided in the Government's report in reply to its previous comments.

Article 5 of the Convention and point V of the report form. The Committee notes, in the consolidated report of the State Labour Inspection (April-December 1997), a high rate (47.5 per cent) of violations in remuneration among the undertakings inspected (1,422 out of 3,000). It also notes a number of delayed payments of wages. The Committee requests the Government to provide further information and explanations on these cases of non-observance of the minimum wage regulations and to indicate the measures taken or envisaged to rectify this situation by ensuring an adequate enforcement of the minimum wage regulations.

[The Government is asked to report in detail in 2000.]

Direct Request (CEACR) - adopted 1997, published 86th ILC session (1998)

The Committee notes the information supplied in the Government's first report. It requests the Government to provide further information on the following points.

Article 1, paragraphs 1, 2 and 3, of the Convention. The Committee notes that article 2 of the Act on Wages, 1991, provides that "The State shall establish a minimum hourly wage (minimum monthly salary)", and that "An employee's hourly (monthly) wage may not be less than the one established by laws". The Committee also notes the Government's indication that these provisions are binding to all employees working according to employment contracts in enterprises, institutions and organizations, irrespective of their forms of ownership.

The Committee requests the Government to indicate if all categories or groups of workers are covered by the minimum wage provisions and, if not, to specify which of them are not covered by these provisions, and the reasons why. It also requests the Government to specify to what extent the representative organizations of employers and workers concerned, where such exist, have been consulted in the determination of the groups of wage-earners to be covered by the minimum wage system.

Article 4. The Committee notes the Government's indication that the Minimum Monthly Wages (MMW) are maintained and revised, and that, in accordance with section 2 of the Act on Collective Agreements and Collective Contracts, wages, including the minimum wages (in any case, not to be lower than the MMW specified by law) can be fixed or revised by a collective agreement. It also notes that, according to the Government, workers and employers' organizations may, through the Meeting Protocol of the Tripartite Commission, take part in the establishment of the Minimum Monthly Wages.

The Committee requests the Government: (i) to specify to what extent the representatives of employers' and workers' organizations or, of employers and workers concerned, have been consulted in the establishment, operation and revision of the minimum wage fixing machinery; (ii) to provide further information on the composition of the Tripartite Commission, including its Meeting Protocol; and (iii) to indicate, as the case may be, how the direct and equal participation of employers' and workers' organizations or employers' and workers' representatives is ensured in the operation of the minimum wage fixing machinery.

Point IV of the report form. The Committee requests the Government to indicate whether decisions have been taken by judicial or other bodies involving questions of principle relating to the application of the Convention and, if so, to supply copies of them.

Point V of the report form. The Committee notes the Government's reference to the State Labour Inspectorate's report on "The observance of the Laws on Labour Protection and Labour and other Standards Acts in Enterprises in 1996". According to this report, violations in respect of wages payment, including failure to meet the obligatory conditions of the employment contract, concealment of wages have been disclosed in more than one of the enterprises which have been inspected. Moreover, during the operations against illegal work, penalties amounting to 171.5 Litas have been imposed on 796 persons, including 722 employers, for the violations of the Laws on Employment Contract, 1991, and the Act on Wages, 1991. At last, according to the Government, sanctions for violations of labour laws have been increased up to 10,000 Litas as from 8 May 1996, and they should be increased again in future in the framework of projects to amend and supplement the appropriate articles of the Code of Administrative Violations of Law. However, the Government notes that violations of labour laws have been found to be less in enterprises in which trade unions operate.

The Committee requests the Government: (i) to provide information on the projects to increase the sanctions for the violation of labour laws, in particular violations of laws on minimum wages; and (ii) to continue to provide information required by these provisions of the Convention.