Insights of experts

Why does your salary sometimes differ from the amount stated in your employment contract? This article explains the key factors that can affect an employee’s monthly net pay in Lithuania, including the application of the Tax-Exempt Amount (TEA), participation in the second-pillar pension scheme, social security contribution ceilings, personal income tax rates, annual leave pay calculations, and sickness leave benefits. Understanding these payroll and tax-related factors can help employees better interpret their payslips and the reasons behind variations in the salary they receive.

Changes to Lithuania's daily allowance rules take effect on 1 October 2026. Learn about new business trip regulations, taxation, rates and employer obligations.

Learn why PIT underpayments may arise when filing the Annual Income Tax Return — from TEA application and income fluctuations to reaching the Sodra ceiling or employer‑paid PIT adjustments.

We would like to inform that the 16th of October 2025 Government of the Republic of Lithuania ruling No. 709 "Regarding the Minimum Wage Applicable in 2026” will come into force as of 1st of January 2026 where minimum monthly salary is raised by 115 EUR – from 1 038 EUR to 1 153 EUR and the hourly wage – from 6,35 EUR to 7,05 EUR.

With the deadline for filing annual income tax returns approaching, GTB experts remind of the applicable social security contributions and PIT after reaching the income threshold of 60 national monthly average salaries

28th of August 2024 Government of the Republic of Lithuania ruling No. 709 "Regarding the Minimum Wage Applicable in 2025” comes into force as of 1st of January 2025 where minimal salary is raised by 114 EUR – from 924 EUR to 1038 EUR and the hourly wage – from 5,65 EUR to 6,35 EUR.

Grant Thornton Baltic tax experts break down the latest updates on the main tax changes in Lithuania as of September 2024

Uncover key tax changes in Lithuania for 2024. Our tax professionals break down the latest updates.

28th of June 2023 Government of the Republic of Lithuania ruling No. 516 "Regarding the Minimum Wage Applicable in 2024” comes into force as of 1st of January 2024 where minimal salary rises by 84 EUR – from 840 EUR to 924 EUR and the hourly wage – from 5,14 EUR to 5,65 EUR.

Tax laws changes affecting payroll as of January 1, 2023 in Lithuania

The most relevant changes to the Labor Code of the Republic of Lithuania are for the attention of company managers, managing accounting persons and human resources managers. Some of them have already entered into force since 2022 July 1. We invite you to check what is relevant for both the employer and the employee and for general payroll accounting.

Tax laws changes affecting payroll as of January 1st 2021

Social security contributions changes from 2018

Approved final decision - from 2018 1st of January Minimum monthly wage is raised by 20 € - from 380 € to 400 €