From January 1, 2027, a number of changes will come into force in Lithuania that will affect salaries, taxes, families with children, benefits and social guarantees for employees.
For some residents, this means more money after raising the minimum wage or tax breaks. For others, costs may rise, in particular due to increased excise taxes on alcohol, tobacco products and e-liquids.
We have collected the main changes in one place.
From January 2027, the minimum monthly wage (MMA) will increase from €1153 to €1245 before taxes.
This means an increase of 92 euros per month, or about 8%.
The minimum hourly wage will also increase:
According to calculations, the minimum wage after taxes will be about 902 euros "on hand". This is about 56 euros more than the current amount.
The increase in the minimum wage will directly affect about 140 thousand workers.
At the same time, the actual amount that a person will receive in a bank account may differ depending on his tax situation.
Good news for families with children - from 2027 there will be an additional tax benefit.
Parents working under an employment contract will be provided with an additional annual non-taxable income of 1044 euros for each child.
For people who work independently, there is a tax credit of €208.80 for each child.
Important: the money will not necessarily appear in the salary in January.
The benefit will be taken into account when declaring income for 2027. Therefore, it will be possible to use it for the first time in 2028, when residents will submit declarations for 2027.
If there are two parents in the family, only one of them receives the right to a benefit for one child. The parents themselves must agree on who will use it.
From 2027, the rules for the payment of maternity benefits are changing.
In cases provided for by law, the benefit will be paid for 126 calendar days - four months.
This is especially important for women who, due to the circumstances of pregnancy and childbirth, are now receiving benefits for a shorter period.
Some changes apply to women who gave birth to a child at 22-30 weeks of pregnancy, if the child did not live 28 days, as well as cases of stillbirth.
Now, in such situations, the benefit can only be paid for 28 calendar days.
The amount of the benefit remains at the level of 100% of compensated earnings.
In case of difficult childbirth or the birth of two or more children, an additional 14 days of payment are provided.
The changes will also affect people who have been assigned guardianship of a newborn child.
From 2027, the allowance will be paid from the date of appointment of guardianship until the child reaches 126 days.
Now the payment is provided only for up to 70 days.
That is, for guardians of newborns, the period of receiving benefits will increase significantly.
The changes provide for the possibility for a woman to return to work earlier after the birth of a stillborn child or the death of a child during the maternity benefit period.
At the same time, she should not lose the right to the assigned benefit.
This change is primarily aimed at allowing a woman to decide for herself when to return to work in such a difficult life situation.
The new rules will be important for people who work for two or more employers at once.
If a person does not receive the minimum wage at any of the jobs, from 2027, employers will have to take into account the aggregate situation when paying social contributions.
As a result, the general base for social contributions should correspond to at least the level of the minimum wage.
For example, if a person works for two employers, the minimum base will be distributed between them. If there are three employers, it will be between three, and so on.
The change may affect more than 8000 workers.
Another notable change concerns the transparency of salaries.
From January 1, 2027, employers will transfer more information about salaries and working hours of employees to Sodra.
The following will be taken into account:
On the basis of these data, it will be possible to calculate the average hourly wage and the difference in pay between men and women in the respective job groups.
The employee will be able to contact the employer in writing and receive information about their salary, as well as the average hourly and annual salary of employees of a certain gender in the same job group.
If there is a difference between salaries, the employer will need to have an objective explanation. For example, the differences may be related to qualifications, skills, responsibilities, or working conditions.
The employer will not be able to ask the candidate how much he earned at his previous job.
That is, when hiring for a new job, the salary should be determined based on the requirements of a specific position and objective criteria, and not only on the person's previous salary.
From 2027, excise taxes on a number of alcoholic beverages will increase.
For example, the rate for beer will increase from 12.74 to 14.85 euros for 1% alcohol and hectolitre.
For wine and other fermented beverages with a strength of up to 8.5%, the rate will increase from 148 to 173 euros per hectoliter.
For stronger drinks - from 296 to 346 euros per hectoliter.
The excise duty on ethyl alcohol will increase from 3130 to 3530 euros per hectoliter of pure alcohol.
It is important to understand that an increase in the excise tax does not automatically mean an increase in the price in the store by exactly this amount. The final cost is also affected by VAT, the purchase price, the manufacturer's costs and the trade margin.
The increase in excise taxes will also affect tobacco products.
From 2027:
The excise tax on e-liquids will increase especially noticeably.
It will rise from 1.56 to 3.91 euros per milliliter.
Thus, the excise duty for a 10 ml bottle alone will be 39.10 euros.
The final price in the store, of course, will depend not only on the excise tax.
In short, from 2027, it is worth paying attention to several main points.
If you receive the minimum wage: it will rise to 1245 euros before taxes.
If you have children: there will be a new tax benefit, but it will be possible to use it for the first time when declaring income for 2027 in 2028.
If you are expecting a child: the rules for paying maternity benefits will change, including in some cases of premature birth.
If you work in several places at once: the procedure for social contributions will change.
If you are looking for a new job: the employer will not be able to ask about your salary at your previous job.
If you buy alcohol or tobacco products: from 2027, excise taxes will increase, which may lead to an increase in retail prices.
The year 2027 will bring additional opportunities for the people of Lithuania to save money and new expenses at the same time.
The most notable changes are the minimum wage of €1,245, about €902 after taxes, a new allowance for parents of €1,044 of additional NPD per child, and a significant increase in excise duty on certain goods.
If you live and work in Lithuania, it is especially worth checking in advance which changes apply to your situation: salary, having children, working for several employers or receiving benefits.
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