Minimum Wage in Lithuania 2025: What’s Changing?

From January 1, 2025, the minimum monthly wage (MMA) in Lithuania increases to €1038 gross, and the minimum hourly wage (MVA) will be €6.35 gross. This represents a 12% and 12.4% increase, respectively, compared to 2024 levels.

According to the resolution of the Government of the Republic of Lithuania, from 2025 the minimum wage changes as follows:

• MMA (gross): €1038
• MMA (net, with full NPD applied): approx. €777
• MVA (gross): €6.35/hour
• MVA (net): approx. €4.75/hour

For part-time work (0.5 FTE) with full NPD applied:

• Gross: €519
• Net: approx. €389

These changes will affect thousands of employees and employers, as MMA and MVA are key wage benchmarks in many sectors.

From 2025 the non-taxable income amount (NPD) is also increasing. It is planned to reach €747 (up from €740 in 2024). This means that employees earning the minimum wage will receive more in hand—even after tax increases. A higher NPD helps low-income earners maintain purchasing power as MMA rises.

Over three years, MMA has increased by nearly 42%, significantly impacting labor market dynamics.

As MMA increases, labor costs rise for employers. This is especially relevant for small businesses with many minimum wage employees. Higher wages mean not only more pay for workers but also higher Sodra and GPM taxes.

To optimize payroll accounting and manage costs efficiently, it’s worth using smart tools like a business management system and employee self-service portal, which help maintain accurate records, automate processes, and ensure smooth data management.

Who qualifies for full NPD?
Full NPD applies to residents whose monthly income does not exceed the set NPD threshold (in 2025 – approx. €1038 gross).

How does Lithuania’s minimum wage compare in the EU?
According to Eurostat, Lithuania is approaching the EU average but still lags behind Western European countries. However, MMA growth is among the fastest in the region.

When might MMA increase again?
New MMA rates are usually discussed mid-year and take effect from January 1 of the following year, if approved by the Tripartite Council and the Government.