Employers and employees in Lithuania will need to adapt to an
increase in the minimum wage and in income tax in the New Year.
The New Year will bring changes to all employers and employees
in Lithuania.
Minimum wage
Firstly, the minimum gross monthly salary will rise from EUR 555
to 607, which corresponds to a 9.4% increase. In turn, the hourly
wage will increase from EUR 3.39 to 3.72. It is strongly
recommended that employment contracts and other employment related
documents that include the EUR 555 salary (or EUR 3.39 hourly wage)
are amended by January 2020.
Income tax raise
Secondly, the Parliament of Lithuania has approved the decision
to raise personal income tax to the employees receiving gross
salaries exceeding around EUR 9223.20 per month. While it was
initially decided at the end of 2018 that these employees would be
taxed with 27% personal income tax, it has now been decided that
from 1 January 2020, personal income tax will increase to 32%.
