Work and Wages

Minimum Wage

Minimum wage in Lithuania is set by the Government on the recommendation of the Tripartite Council which is composed of representatives from Government (four relevant ministries), employer and employee representatives (four members each) and three independent experts. Upon the recommendation of the Tripartite Council, the Government may establish different minimum rates of hourly pay and monthly wage for different sectors of economy, regions or categories of employees. Minimum wage is set while taking into account the wage level in the previous year, average wage level in the country, need of workers and their families, cost of living/Consumer Price Index,  economic development, productivity, size of the private sector, level of employment and the capacity of the employers to pay. Under the amended Labour Code 2017, minimum wage can be paid only for unskilled labour.

Minimum wage can also be set through collective bargaining, provided that it is not lower than the minimum wage set by the government.

Compliance with provisions of Labour Code is the responsibility of the State Labour Inspectorate. Trade union also has the responsibility to play a role in implementation of the minimum wage rates. In the case of non-payment of minimum wage (set by government or under collective agreement), a fine is imposed on the employer. Such sanctions are part of the Latvian Administrative Violations Code.

Sources: §8 & 12 of Principles and Procedure of Determination of the Minimal Remuneration for Work; §141 of Labour Code 2016, last amended in 2017; §99 of the Code of Administrative Offenses of the Republic of Lithuania No. XII-1869, 2017

Regular Pay

A wage is defined as remuneration for work performed by an employee under a contract of employment. A wage comprises the basic salary and all additional payments directly paid by the employer to an employee for the work performed. The wage of an employee depends upon the amount and quality of work, the results of the activities by the enterprise, establishment or organisation as well as the labour demand and supply on the labour market.

Wages must be paid to employees at least twice a month or once a month on the request of an employee. Labour Code requires that wages be paid in cash. All the employees must be given pay slips by the employer indicating gross pay, take-home pay and deductions, as well as the duration of the time worked by the employee, specifying the duration of overtime work. The specific time periods, place and procedure of wage payment is specified in collective agreement or contract of employment.

A deduction in wages may be made only in accordance with the law (to recover debt, advance loan, etc.). The total amount of deductions from the wage should not exceed 20% of the minimum monthly wage established by the Government in the normal cases. In certain cases, up to 50% deductions are allowed.

Sources: §139, 140, 144-150 of Labour Code 2016, last amended in 2017

Regulations on Work and Wages

  • Lietuvos Respublikos darbo kodeksas (2016), paskutinį kartą redaguotas 2017 metais / Labour Code 2016, last amended in 2017
  • Minimalaus darbo užmokesčio nustatymo principai / Principles and Procedure of Determination of the Minimal Remuneration for Work Labour Code 2002, last amended in 2013

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