What Does the Change Mean for Employers?

The minimum monthly wage in Lithuania applies to workers performing unskilled labor—tasks that do not require special qualifications, skills, or professional expertise. It is important to note that collective agreements may set higher minimum wage rates for certain sectors or industries. Employers must ensure they comply with the new minimum wage requirements.

Minimum Wage in Lithuania: the Tripartite Council's Role

The minimum wage rates in Lithuania are recommended by the Tripartite Council, which comprises representatives from trade unions, employers’ organizations, and government officials. The council takes into account various factors, such as national economic trends and indicators, to set the minimum wage for the year. Each year, the council presents its recommendations to the government by June 15.

Employers should also keep in mind that the Tripartite Council plays a key role in influencing the minimum wage in Lithuania, and this process is subject to annual reviews. As a result, wage levels may change periodically to reflect the economy's development.

Payroll Requirements

In terms of payroll frequency, Lithuania’s labor code requires that employees receive their salaries at least twice per month, or once a month if agreed by the employee. Salaries must be paid within 10 working days of the end of the month. Employers failing to meet the deadline may face late fees, which are determined by the Minister of Social Security and Labour.

Furthermore, if an employee's contract is terminated, all employment-related payments, including wages, must be paid to the employee. The employer must make these payments within 10 working days unless the employee agrees to a different payment schedule. In the case of delays, employers will be charged a forfeit based on the employee’s average monthly wage, multiplied by the number of months the payment is overdue, up to six months.

Implications for Employers in Lithuania

Employers in Lithuania need to ensure they are fully compliant with the updated minimum wage regulations for 2025. This includes adjusting payroll systems to reflect the new minimum monthly wage of EUR 1,038 for unskilled labor. It’s also essential to stay informed about any future recommendations from the Tripartite Council, as changes could affect wage structures in the future.

For global companies, navigating these updates requires diligence in reviewing local employment laws and ensuring that payroll and compliance systems are up to date.

How Atlas HXM Can Support

For companies with operations in Lithuania, managing payroll and compliance with the minimum wage regulations can be complex. Atlas HXM provides comprehensive global payroll and compliance solutions, enabling businesses to stay on top of evolving labor laws. Our platform helps companies ensure that their workforce is paid in accordance with local regulations, reducing the risk of compliance issues and ensuring smooth operations across multiple regions.