The minimum wage in Lithuania is one of the main indicators that directly affect the income of a large share of workers. The annual increase in the MMA helps to maintain the balance of purchasing power, reduce social exclusion and ensure that the incomes of the lowest earners grow in line with the economy. The changes approved for 2026 are significant and will affect not only workers, but also employers and the self-employed.
Changes to the minimum wage 2025-2026
The minimum monthly wage (MMA) is €1,038 in 2025, rising to €1,153 on 1 January 2026, giving a “hand-over” of around €846.96.
The hourly wage is also rising – from €6.35 to €7.05. This is particularly important for employees working on a rolling schedule, part-time or on an hourly basis.
This increase in the MBA is one of the measures to reduce income inequality and ensure a minimum standard of living. It increases cash inflows not only by working 5 days a week but also by working less.
What does this mean in practice?
▪ Reduces the likelihood of being paid less than the minimum subsistence wage.
▪ Increasing affordability of the cost of living as inflation rises.
▪ Companies need to review their pay systems if some workers are paid close to the MMA.
Additional taxes and changes in contributions
PSD, “Sodra floor” and remuneration for posted workers
As the MMA is linked to other taxes, a number of contributions also increase:
- PSD contribution: from €72.41 (2025) to €80.48 (2026)
- The “Sodros floor”: also rising with the MMA
- Minimum remuneration for seconded staff:
– 2025 m. – 1 713 € ,
– 2026 m. – 1 902,45 € - Hourly remuneration for seconded staff:
– 10,48 € → 11,63 €
This is important for companies that send staff to work in other EU countries – to qualify for tax-free daily subsistence allowances, their salaries must meet the thresholds.
What do employees need to know?
If the number of postings is high, the level of payments may be directly linked to the MMA, so some workers will receive higher tax-free amounts in 2026.
Changes to the NPD and the impact on the ‘hand’ wage
With the new methodology for calculating the NDL starting in 2026, even an increase in the MMA may result in a different amount “in hand”. For some employees, the amount payable may even increase more than the increase under the MMA.
There are also changes to the rates of some social contributions for the self-employed (business licences, farmers), which depend directly on the MMA.
All in all, the changes in the MMA between 2025 and 2026 are among the largest in recent years. They bring real financial benefits for workers and the need for employers to re-evaluate pay policies and budgeting.
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