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ARTICLE · 22 OCTOBER 2025

How Lithuania's 2026 Minimum Wage Increase Impacts Payroll And Taxes

Starting January 1, 2026, Lithuania's minimum wage will increase by approximately 11.1%, following a decision approved by the government.

LithuaniaEmployment and HR

Starting January 1, 2026, Lithuania's minimum wage will increase by approximately 11.1%, following a decision approved by the government. This adjustment is part of a broader strategy aiming to improve income levels and ensure better social security contributions for workers.

New Minimum Wage and Hourly Rate

From the beginning of 2026, the new gross minimum monthly wage (MMA) will be set at €1,153, up from €1,038 in 2025. Meanwhile, the minimum hourly rate will rise to €7.05, compared to the current €6.35.

Impact on Contributions and Thresholds

These changes will also have an impact on several related contributions and thresholds:

  • Health Insurance (PSD): Mandatory monthly health insurance contributions (PSD) will increase to €80.48, as they are calculated as 6.98% of the minimum wage.

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