As of 1 January 2025, significant updates to
Article 20 of the Law on Personal Income Tax
(GPMĮ) in Lithuania will affect the way the
non-taxable income amount (NPD) is applied to
individuals. These changes reflect an adjustment to the
minimum monthly wage (MMA) and introduce a revised
NPD formula. The State Tax Inspectorate
(VMI) has issued updated commentary to clarify the new
calculations and their impact on payroll and employee taxation.
Key Changes to the NPD Calculation
Effective 1 January 2025, the MMA in Lithuania will
increase to €1,038. In line with this, both NPD
formulas and the income thresholds have been revised. The updated
VMI commentary includes new examples to illustrate how the amended
legislation will affect monthly payroll calculations.
