The companies are fighting for survival in everyday competition against other companies. Up until that, everything is fine. It stops being fine when authorities interrupt this process. Their decisions and insensitive approach – made without consideration for economic consequences – can be fatal for companies.
From 2012 to 2014 Lithuania increased its minimum monthly wage by almost one third (from 800 Litas in 2012 to 1,035 Litas in 2014). There are suggestions to increase the minimum wage in 2015 even more the supporters of the idea claim that companies would adapt. But is it all that simple? According to the survey conducted by LFMI, minimum wage increases come at a cost and they eventually bring several negative consequences.