Minimum monthly salary (MMA) rises to 642 EUR
We would like to inform you that the 14th of October, 2020 Government of the Republic of Lithuania ruling No. 1114 "Regarding the Minimum Wage” comes into force as of 1st of January 2021, setting that minimal salary rises by 35 EUR - from 607 EUR to 642 EUR and the hourly wage - from 3,72 EUR to 3,93 EUR.
This amendment is applied automatically to employees who receive a minimum salary or salary lower than 642 EUR (or respectively lower than hourly rate of 3,93 EUR). Minimum monthly/hourly wage increase will affect the mentioned above employees’ vacation, sick leave pay or any other pay that is calculated with average during the period of January to March 2021. This decision also will implies per diem pay for trips abroad are tax exempt when employee salary is higher than 1059.30 EUR (before was 1001,55 Eur) or hourly payment is higher than 6.49 EUR/h (6,485 Eur/h).
Also, non taxable income calculation formula’s coefficient changes from 0,19 to 0,18:
Monthly non-taxable income = 400 – 0,18 x (employment related income - minimum monthly salary applicable on the calendar years)
For persons who have limited capacity for work the monthly non-taxable amount stays unchanged.
Social insurance rate change for participants in Pensions savings scheme
Participants in Pensions savings scheme contribution rate increases from 2,1% to 2,4%. The rates for those whose rate was 3%, nothing changes.