MINIMUM AND AVERAGE SALARY IN LITHUANIA

In terms of average salaries today Lithuania is not inferior not only to its nearest neighbours in the Baltic region – Estonia and Latvia, but also to some other countries of the European Union. Therefore, employment in Lithuania in certain fields of activity is in demand among applicants from different countries. For example, foreigners are often interested in work as a driver of heavy vehicles, which can bring a monthly income of over 1,000 euros.

Many foreign entrepreneurs open a business in Lithuania and create additional jobs, which allows them to obtain a Lithuanian residence permit and settle in Europe for a long period of time. Lithuania has a population of only 2.7 million people. Unemployment fluctuates between 8-9% during the year. Next, let us outline the level of minimum and average salaries in Lithuania in 2024.

Minimum wage in Lithuania

According to the official information of the Lithuanian government, the minimum wage in Lithuania from 1 January 2024 is 924 euros per month. The hourly rate is equal to 5.65 euros. Compared to 2024, the remuneration of Lithuanian workers has increased by 84 euros or 10%. According to Article 144 of the local Labour Code, the standard working week in the country lasts 40 hours and the daily work period is 8 hours. Based on these indicators, the Lithuanian government sets the minimum wage.

It is worth noting that earlier the Republic of Lithuania was the penultimate in the European Union in terms of minimum wage. Today the rate is even lower not only in Bulgaria (475 euros), but also in Romania (665 euros), Hungary (695 euros), as well as in neighbouring Latvia (700 euros) and Estonia (820 euros). From such developed countries as Germany, France, Belgium and the Netherlands the lag is more than 2 times. For example, Dutch workers earn a minimum of €2,069.96 per month.

Average salary in Lithuania

According to the official data of the Lithuanian Department of Statistics, the average salary in Lithuania in 2024 is 2,097.3 euros per month before taxes. At the same time, local specialists in the public sector earn 2,116.4 euros and in the private sector 1,973.8 euros (including entrepreneurs). After all mandatory deductions, the net average salary in Lithuania is 1,296.50 euros. The salary of Lithuanian doctors averages 2,539.9 euros per month, and teachers 1,497.2.

Note. The significant increase in income in Lithuania was influenced by amendments to the tax system (1 January 2019), which, among other things, ensured an increase in the minimum wage and the basic amounts for calculating wages for civil servants and employees of budgetary institutions.

The level of average labour remuneration in Lithuania is influenced by an employee's profession, qualifications, experience and education. For example, graduates of Lithuanian universities can expect a higher salary than those without a higher education diploma. The capital of the Lithuanian state is considered to be the most attractive city for earning money. Working in Vilnius will provide a net average income of 1,300-1,400 euros per month and more. However, most young Lithuanians still prefer to look for work abroad.

Looking at individual sectors of the Lithuanian economy, the highest average salaries in 2024 are recorded in information and communication (3,766 euros) and the lowest in accommodation and catering (1,235.7 euros). Men in Lithuania earn on average 200 euros more than women – 2,257.9 euros and 2,060.3 euros respectively.

Note. Information on average wages by sector is based on official data from the Lithuanian Statistics Department.

Taxes on salaries in Lithuania

Low salaries in Lithuania by EU standards are compensated by relatively moderate taxes. In particular, the state has a fixed income tax, which is levied at the rate of 20%. In some cases, an increase to 32% is envisaged if annual income exceeds 60 average salaries (114,162 euros in 2024).

Tax rates on salaries in Lithuania in 2024

• Income tax – 20-32%

• Health insurance contributions – 6.98% (per employee)

• Social insurance tax – 19.5% (per employee)

Lithuanian employers pay 1.79% social security taxes on salaries of employees.

HIGHEST PAID OCCUPATIONS IN LITHUANIA

• Chief Executive Officers (CEOs)

• Doctors

• Programmers

• Financiers/bankers

• Lawyers

• Aviation pilots

• Engineers in management positions

• Sales managers

• Marketing and communications experts

• Energy specialists

Cost of living in Lithuania

Compared to most Western European countries, living in Lithuania is quite cheap. The most affordable city to live in is Klaipeda, Vilnius is second and Kaunas is third.

Basic costs in Lithuania:

• Rent: 550-650 euros per month for a one-bedroom flat in the centre.

• Utility bills: 150-200 euros per month.

• Food: 150-200 euros per month per person.

• Transport: 25-35 euros per month by public transport or 100-150 euros per month by car.

• Internet/mobile phone: 25-30 euros per month.

• Clothing and leisure activities: 200-300 euros per month.

Frequently asked questions about salaries in Lithuania:

1. What is the average salary in Lithuania?

• Before taxes, the average salary in Lithuania in 2024 is €2,097.3 per month.

2. What is the minimum wage in Lithuania?

• The minimum salary in Lithuania in 2024 is €924 per month (hourly rate – €5.65).

3. What is the highest earning job in Lithuania?

• The highest paid professions in Lithuania are programmers, doctors and CEOs of large companies.

4. What is the lowest paying job in Lithuania?

• Representatives of unskilled labour – cleaners, waiters, cooks' assistants, loaders, shop assistants, maids and so on – earn the least in Lithuania.

5. What is the average salary of programmers in Lithuania?

• The average income of programmers in Lithuania varies from 30,000 to 74,000 euros per year.

6. What is the payroll tax in Lithuania?

• The income tax rate in Lithuania is 20% (32% is stipulated if annual income exceeds 60 average salaries (€114,162 in 2024).

7. What is the average salary in Vilnius?

• The average salary in Vilnius in 2024 is 1,300-1,400 euros per month after taxes.

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