Wondering what Lithuania’s average salary is or how it stacks up against other countries?
Lithuania, located in the Baltic region of Europe, has an average salary of 20,003 EUR per year. This amounts to about USD 22,104 per year, according to the exchange rates in April 2023.
Compared to the average salaries of developed nations like the United Kingdom (USD 88,924 per year) and the United States (USD 94,700 per year), Lithuania stands out as an attractive outsourcing destination for foreign nationals.
In this article, we’ll look at the statistics related to the average salary in Lithuania, how this Baltic state fairs compared to other countries, and why outsourcing to Lithuania is a good idea.
What is the average salary in Lithuania?
As of 2022, the average monthly salary in Lithuania is 1,666.9 EUR per month (gross salary). This equates to about USD 1,842 per month.
This average monthly salary includes transport, housing, and other allowances.
Note: Before officially using Euros in 2015, Lithuania used Lithuanian Litas as their currency.
Let’s look at some statistics to understand the average salary in Lithuania better.
1. Median salary
The median salary refers to the middle point of all salaries – this means that 50% of employees earn more than the median salary, while the other 50% earn less.
The median salary in Lithuania is 857 EUR per month. This equates to USD 947 per month.
2. Maximum and minimum salary range
In Lithuania, the average minimum salary is 240 EUR per month (USD 265), and the highest average pay is 4,228 EUR per month (USD 4,672).
However, the lowest minimum and highest salary can vary based on education, experience, location, etc.
Personal income tax rates for Lithuanian employees are 20% (for monthly salaries under 7,520.50 EUR) and 32% (for monthly salaries exceeding EUR 7,520.50 per year).
3. Average annual salary increase
Lithuanian employees usually enjoy an average 8% salary increment every 18 months.
While an ‘annual salary increase’ implies a salary increment every 12 months, that’s not always the case. How often salary increments are received, differs from company to company and will be mentioned in the job description.
Let’s take a look at the different increment values based on various factors.
A. Average annual increase by industry
Below are the average annual increase rates per industry.
|Industry||Average increase in percentage|
B. Average salary increase by experience
Here are the average salary increase rates based on experience.
|Experience level||Average increase in percentage|
4. Minimum wage
The minimum wage in Lithuania as of the first quarter of 2023 is 840 EUR per month. This equates to USD 928.
This is the minimum wage workers should receive, but they can receive more. For example, in Vilnius (the capital city), the average wage is 1,050 EUR per month.
The Labor Code states that the working hours must not exceed 40 weekly. That’s why the minimum wage is calculated considering a 40-hour work week (8 hours a day).
In Lithuania, the minimum wage is decided by the government under the recommendations of the Tripartite Council. This council consists of government representatives, employee and employer representatives, and three independent experts.
Now let’s take a look at the various factors that influence salaries in Lithuania.
Average salary comparison
The average salary in Lithuania depends on several factors, including experience, educational level, field of work, job title, and location.
Here’s the breakdown of the salary comparison based on these crucial factors:
The more experience an employee has under their belt, the higher their compensation.
|Work experience level (in years)||Salary difference (in percentage)|
|<2 years||Base salary|
|2 to 5 years||32% more|
|5 to 10 years||36% more|
|10 to 15 years||21% more|
|15 to 20 years||14% more|
|20+ years||9% more|
2. Education level
In Lithuania, 57% of citizens aged 25-34 have a tertiary-level education.
Let’s see how a difference in educational qualification affects your salary in Lithuania.
- An employee with a certificate or diploma earns 17% more salary than one with a high school degree.
- A person with a Bachelor’s degree earns 24% more than those with just a diploma or certificate.
- An employee with a Master’s degree earns 29% more than people with a Bachelor’s degree.
- And lastly, a Ph.D. holder earns 23% more than those with a Master’s degree.
Ultimately, the career field can greatly affect salaries. This is because salaries can vary across:
- Sectors (public sector and private sector).
- Professions ( information technology, human resources, medical field, etc.)
Monthly salaries also change according to job types (freelance, part-time, or full-time employee, etc.) within each sector.
According to Salaryexplorer, the highest paying business jobs in Lithuania are in the healthcare sector and the judicial system. The highest salary belongs to surgeons and doctors (3,533.36 EUR per month).
Here’s a closer look at some other jobs and their average monthly salary in Lithuania:
|Profession||Average monthly salary|
|Market research analysts||1,146.89 EUR|
|Management analysts||1,120. 82 EUR|
|Project manager||1,057.11 EUR|
|Software developer/ programmer||981.81 EUR|
|Software engineer||941.26 EUR|
|Human resources specialists||897.82 EUR|
|Marketing specialists||874.65 EUR|
|Real estate agent||822.52 EUR|
|Loan officers||622.68 EUR|
|Internal compliance officers||593.72 EUR|
|Sales representative||596.61 EUR|
Your location in Lithuania also affects your salary.
For example, living in the capital area, Vilnius, the average salary is higher than in other parts of Lithuania.
Let’s look at how Lithuanian cities fare regarding average monthly salaries.
|City||Average salary per month|
With these four factors considered, an agreed-upon employment contract between employer and employee determines the final remuneration per worker.
Disclaimer: The salary information presented in this article is intended to serve as a guide only. It’s based on various salary surveys, and the actual salary may differ based on multiple factors.
Curious to see how Lithuania compares to other European countries?
Average salaries of other European countries
Let’s see how other European countries stack up against Lithuania in terms of monthly salaries.
|Country||Average monthly salary|
|Norway||5,090.13 USD (134.46% more)|
|Estonia||2,868.37 USD (96.79% more)|
|Montenegro||2,795.09 USD (94.79% more)|
|Czech Republic||2,620.80 USD (89.73% more)|
|Latvia||1,935.93 USD (63.98% more)|
|Ukraine||620.13 USD (46.655% less)|
Compared to the above-listed countries, Lithuania would be a European country toward the lower end of the spectrum.
Now let’s take a closer look at the benefits offered to employees in Lithuania.
Additional employee benefits offered by employers in Lithuania
Here are a few benefits you would offer your employees in Lithuania:
- Social security: In Lithuania, employers and employees make social security contributions. These funds go towards maternity, sick leave, unemployment, and insurance.
- Sick leave: Employees are entitled to a minimum of 28 days per year of paid sick leave in Lithuania.
- Maternity and paternity leave: In Lithuania, mothers receive a total of 126 days of maternity leave. Fathers receive 30 days of paternity leave.
- Vacation days: Employees working a 5-day week are entitled to 20 working days off, and employees working a 6-day week are entitled to 24 working days off. These annual leave days may be used after six months of employment.
Note: Health insurance in Lithuania is funded through mandatory contributions (6.98%) from employees.
Now let’s see what makes Lithuania an attractive destination for outsourcing.
3 significant benefits of outsourcing to Lithuania
When it comes to outsourcing, Lithuania has a lot to offer. The country is known for its high quality of work, cost efficiency, and booming IT sector.
1. Highly skilled workforce
A huge reason why businesses from Canada, Europe, and other locations outsource to Lithuania is the availability of highly skilled workers.
According to a 2021 Eurostat report, Lithuania ranks 3rd in Europe for the highest number of people (aged 25-34) who’ve attained tertiary education. Currently, there are 27,400 IT professionals employed and about 750 future professionals graduating annually.
There are also 22 universities in the country producing high-quality graduates yearly.
Additionally, Canadian and European companies state that Lithuanians have impressive English-speaking abilities.
In Lithuania, English is the most popular foreign language that’s learnt and spoken. Around 30% of Lithuanians speak English which makes the country a prime destination for western businesses looking to outsource.
Quick fact: Labor statistics show the Lithuanian employment rate reached an all-time high of 74.40% in the second quarter of 2022. According to Statistics Lithuania, the current unemployment rate in Lithuania is 5.7%, which is less than in some Baltic states like Latvia (7.10%).
2. Booming IT sector
Lithuania’s technology sector has developed into a hub for international companies who want to utilize a proficient workforce. This boom in the Information Technology sector means a greater demand for IT professionals.
From AI-driven solutions to software engineering and game development, Lithuania’s tech sector offers expertise and innovation.
Huge global enterprises such as Google, Nasdaq, IBM, Uber, etc., have already set up Research and Development centers in Lithuania. Investments like these from companies from the United States and other countries have further led to substantial growth in the Lithuanian IT industry.
3. Free economic zone (FEZ)
Perhaps one of the most significant advantages of outsourcing to Lithuania is the Free Economic Zone, which refers to large designated areas reserved for local and outsourcing companies. These can be found in cities like Kaunas, Klaipėda, etc.
How does the FEZ work?
By starting a company in the FEZ and employing 20-plus Lithuanians (or permanent residents), your business can be exempt from:
- Contribution to corporate profit taxes during the first ten years.
- Paying dividends and real-estate tax throughout your contract.
These tax exemptions and the industrial sites offered by Lithuania make the country a popular destination for growing businesses.
Plus, Lithuania has an impressive GDP of 11857.10M EUR, the highest GDP per capita of the Baltic states. Since a country’s GDP serves as a great indicator of its economy and its total output, it’s clear why Lithuania is a good country for outsourcing.
The average salary in Lithuania is relatively low compared to most other European countries and Baltic states.
With a nation of highly skilled individuals, an ever-evolving IT sector, and the Free Economic Zone, Lithuania provides benefits worth investing in.
You can utilize this average salary Lithuania guide to understanding if the country is the best fit for outsourcing your business processes.