It has been a great decade for all three Baltic states, and increasing minimum wages is just one good example of showing that.
From humble EUR 238 in 2010 to still modest EUR 607 (Lithuania). That's quite an impressive growth in "just" 10 years.
For me observing minimum wages in the Baltic states has always been interesting, here you can find some of my previous articles on this topic:
- Minimum wages in Baltic states 2013
- Minimum Wages in the Baltic States 2015
- Minimum Wage Set to Rise in the Baltic States in 2018
Why do I care so much about minimum wages in the Baltic states? Simple, I've been building a dividend-paying stock portfolio and one of the mine goals is to reach a monthly dividend income level in the same level as a minimum wage.
Currently, I'm competing against Latvian minimum wage set at EUR 430 in 2020. The current best dividend income month has been June 2019, when I made EUR 267. In general, when planning next year's investments I must keep in mind the minimum wage increases. Tough. But that's what I'm loving being a dividend growth investor - a healthy competition. See dividend income. As there is no planned minimum wage increase in Latvia for this year, it will be easier for me to get closer to that number.
Estonia (EUR 584)
Estonia's minimum wage has more than doubled from EUR 278 in 2010 to EUR 584 in 2020
There has been a long debate to increase the minimum wage to 40% of the nation's average wage.
Representatives of the Estonian Trade Union Confederation (EAKL) and the Estonian Employers' Confederation (ETTK) accepted the public conciliator's proposal on Tuesday according to which the minimum monthly wage in Estonia will increase to €584 and the hourly minimum wage to €3.48 next year.
Latvia (EUR 430)
From EUR 256 in 2020 to EUR 430 in 2020.
The minimum wages stays intact in Latvia, which last time was raised two years ago in 2018, hopefully, there is awaited a steeper increase in 2021
The minimum wage could be raised to €500 in 2021, but the differentiated non-taxable minimum could be raised in 2020, according to the Finance Ministry's report on fiscal space measures and expenditures for priority measures next year and in 2020-2022, which the Cabinet will review September 6.
Lithuania (EUR 607)
From EUR 238 in 2010 to EUR 607 in 2020. Just like in Estonia, the minimum wage in Lithuania has more than doubled.
In recent years Lithuania changed the way how minimum wage is calculated, which led to some great boost. 607 EUR is the new minimum wage in Lithuania starting 2020. Why such an odd number? Probably to be 3 EUR ahead of neighboring Poland? Who knows
- Lithuania’s monthly minimum wage is to increase by 9.4% to 607 euros (U.S. $685.18) for 2020, up from 555 euros (U.S. $626.48) for 2019, the country’s Ministry of Social Security and Labor said July 3 in a news release (Lithuanian).