Minimum Wage in Lithuania in 2026

If you are planning to hire employees in Lithuania or are opening a Lithuanian company, understanding the minimum wage rules is essential. Besides determining the lowest salary you can legally pay, the minimum wage also affects payroll calculations and, in some cases, the amount of social insurance contributions an employer must pay.

What Is the Minimum Wage in Lithuania in 2026?

From 1 January 2026, the statutory minimum wage in Lithuania is:

• €1,153 gross per month for full-time employees.

• €7.05 gross per hour for employees paid on an hourly basis.

These rates are approved by the Lithuanian Government and apply to employees working under employment contracts.

Can an Employer Pay Less Than the Minimum Wage?

In most cases, no. If an employee works full-time under an employment contract, their gross monthly salary cannot be lower than the statutory minimum wage.

The exception is when an employee works part-time. In that case, the salary may be lower because it is calculated according to the agreed working hours.

For example:

• A full-time employee (40 hours per week) must receive at least €1,153 gross per month.

• An employee working 20 hours per week may legally receive approximately half of that amount, provided the hourly rate is not below the legal minimum.

Gross Salary vs. Net Salary

The minimum wage announced by the government is always the gross salary. This means income tax and employee social insurance contributions are deducted before the employee receives their salary.

The final net salary depends on several individual factors, including:

• the applicable tax-free allowance (NPD),

• pension accumulation,

• other deductions or benefits.

Because every employee's tax situation may differ, the net amount received can vary even if the gross salary is the same.

Part-Time Employees and Social Insurance Contributions

Many employers assume that if someone works part-time, social insurance contributions are always calculated only on the actual salary paid. In reality, this is not always the case.

If a part-time employee does not have another employer in Lithuania, the employer generally has to calculate and pay social insurance contributions as if the employee earned at least the monthly minimum wage. This is known as the minimum contribution base.

However, if the employee already works for another employer and is insured through that employment, this requirement usually does not apply. In that case, contributions are calculated only on the salary earned from the part-time position.

For example:

• Employee A works 20 hours per week and earns €600 per month. They have no other employer. In most cases, social insurance contributions must be calculated using the minimum monthly wage as the contribution base.

• Employee B also works 20 hours per week and earns €600 per month, but has another full-time job. In this situation, contributions are generally calculated only on the €600 salary.

Because there are several legal exceptions, employers should always verify an employee's insurance status before processing payroll.

Need Help with Payroll or Hiring Employees in Lithuania?

Whether you are opening a new company or expanding your team, BalticIncorp can help you stay compliant with Lithuanian employment and tax regulations.

We assist international entrepreneurs with company formation, payroll administration, accounting services, and ongoing business support, making it easy to hire employees and operate your business in Lithuania with confidence.