Lithuanian Social democratic MP suggest more taxes on below-minimum wage

DELFI / Kiril Čachovskij

Under to the proposal, if an employee works part-time and is therefore paid less than minimum monthly wage, his or her employer would still have to pay social insurance instalments calculated for full-time salary.

Mr. Sysas says that “if someone can bypass the law and claims that one can live on a 100-euro wage, I cannot believe that. <…> Everyone has to take part in the social insurance system, because everyone wants to get benefits from it, but some refuse to pay instalments.<…> A person who does not work full working day is left without social insurance coverage and everyone else will have to give that person part of their collected money. It is therefore in everyone‘s interest to get all the people in the system.“

Eligijus Masiulis, the leader of the Liberal Movement, says that “an employer will have to pay social insurance and health insurance taxes for a person who works two or three hours a day. That means it will be harder for small businesses to survive in the regions, because if they could hire people full time, they would. In other words, Mr. Sysas wants to tax income that Lithuanian citizens do not receive.”

Mr. Sysas counters that Estonia has not bankrupted its small businesses after introducing similar amendments.

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