Questioning what Lithuania’s common wage is or the way it stacks up in opposition to different nations?
Lithuania, situated within the Baltic area of Europe, has a mean wage of 11,382 EUR per yr. This quantities to about USD 11,947.29 per yr, in line with the trade charges in December 2022.
In comparison with the common salaries of developed nations like the UK (USD 86,516.69 per yr) and america (USD 94,700 per yr), Lithuania stands out as a sexy outsourcing vacation spot for overseas nationals.
On this article, we’ll have a look at the statistics associated to the common wage in Lithuania, how this Baltic state gala’s in comparison with different nations, and why outsourcing to Lithuania is a good suggestion.
Let’s go.
What’s the common wage in Lithuania?
As of 2022, the common month-to-month wage in Lithuania is 1,666.9 EUR per 30 days (gross wage). This equates to about USD 1,749.69 per 30 days.
This common month-to-month wage contains transport, housing, and different allowances.
Observe: Earlier than formally utilizing Euros in 2015, Lithuania used Lithuanian Litas as their forex.
Let’s have a look at some statistics to know the common wage in Lithuania higher.
1. Median wage
The median wage refers back to the center level of all salaries – which means that 50% of staff earn greater than the median wage, whereas the opposite 50% earn much less.
The median wage in Lithuania is 984.70 EUR per 30 days. This equates to USD 1037.21 per 30 days.
2. Most and minimal wage vary
In Lithuania, the common minimal wage is 240.38 EUR per month (USD 253.12), and the best common pay is 4,228.54 EUR per month (USD 4,452.73).
Nevertheless, the bottom minimal and highest wage can fluctuate primarily based on training, expertise, location, and many others.
Observe:
Private revenue tax charges for Lithuanian staff are 20% (for month-to-month salaries beneath 7,520.50 EUR) and 32% (for month-to-month salaries exceeding EUR 7,520.50 per yr).
3. Common annual wage enhance
Lithuanian staff normally take pleasure in a mean 8% wage increment each 18 months.
Whereas an ‘annual wage enhance’ implies a wage increment each 12 months, that’s not all the time the case. How usually wage increments are acquired, differs from firm to firm and shall be talked about within the job description.
Let’s check out the completely different increment values primarily based on varied components.
A. Common annual enhance by business
Under are the common annual enhance charges per business.
| Business | Common enhance in share |
| Journey | 8% |
| Banking | 7% |
| Building | 6% |
| Vitality | 5% |
| Training | 4% |
| Info Expertise | 3% |
| Healthcare | 1% |
Supply: Salaryexplorer.com
B. Common wage enhance by expertise
Listed below are the common wage enhance charges primarily based on expertise.
| Expertise degree | Common enhance in share |
| Junior | 3-5% |
| Mid-career | 6-9% |
| Senior | 10-15% |
| High administration | 15-20% |
Supply: Salaryexplorer.com
5. Minimal wage
The minimal wage in Lithuania as of the third quarter of 2022 is 730 EUR per 30 days. This equates to USD 769.40.
That is the minimal wage employees ought to obtain, however they will obtain extra. For instance, in Vilnius (the capital metropolis), the common wage is 1,050 EUR per 30 days.
The Labor Code states that the working hours should not exceed 40 weekly. That’s why the minimal wage is calculated contemplating a 40-hour work week (8 hours a day).
In Lithuania, the minimal wage is set by the federal government beneath the suggestions of the Tripartite Council. This council consists of presidency representatives, worker and employer representatives, and three unbiased specialists.
The 2021 annual imply wage of 4.47 EUR per hour is predicted to extend as of January 1, 2023. The minimal hourly wage shall be elevated to five.14 Euros.
Now let’s check out the assorted components that affect salaries in Lithuania.
Common wage comparability
The common wage in Lithuania is dependent upon a number of components, together with expertise, academic degree, discipline of labor, job title, and placement.
Right here’s the breakdown of the wage comparability primarily based on these essential components:
1. Expertise
The extra expertise an worker has beneath their belt, the upper their compensation.
| Work expertise degree (in years) | Wage distinction (in share) |
| <2 years | Base wage |
| 2 to five years | 32% extra |
| 5 to 10 years | 36% extra |
| 10 to fifteen years | 21% extra |
| 15 to twenty years | 14% extra |
| 20+ years | 9% extra |
Supply: Salaryexplorer.com
2. Training degree
In Lithuania, 57% of residents aged 25-34 have a tertiary-level training.
Let’s see how a distinction in academic qualification impacts your wage in Lithuania.
- An worker with a certificates or diploma earns 17% extra wage than one with a highschool diploma.
- An individual with a Bachelor’s diploma earns 24% greater than these with only a diploma or certificates.
- An worker with a Grasp’s diploma earns 29% greater than folks with a Bachelor’s diploma.
- And lastly, a Ph.D. holder earns 23% greater than these with a Grasp’s diploma.
3. Career
Finally, the profession discipline can drastically have an effect on salaries. It’s because salaries can fluctuate throughout:
- Sectors (public sector and personal sector).
- Professions ( info expertise, human sources, medical discipline, and many others.)
Month-to-month salaries additionally change in line with job sorts (freelance, part-time, or full-time worker, and many others.) inside every sector.
In response to Salaryexplorer, the best paying enterprise jobs in Lithuania are within the healthcare sector and the judicial system. The best wage belongs to surgeons and medical doctors (3,533.36 EUR per 30 days).
Right here’s a more in-depth have a look at another jobs and their common month-to-month wage in Lithuania:
| Career | Common month-to-month wage |
| Market analysis analysts | 1,146.89 EUR |
| Administration analysts | 1,120. 82 EUR |
| Venture supervisor | 1,057.11 EUR |
| Software program developer/ programmer | 981.81 EUR |
| Software program engineer | 941.26 EUR |
| Human sources specialists | 897.82 EUR |
| Advertising and marketing specialists | 874.65 EUR |
| Actual property agent | 822.52 EUR |
| Mortgage officers | 622.68 EUR |
| Inside compliance officers | 593.72 EUR |
| Gross sales consultant | 596.61 EUR |
Supply: Salaryexplorer.com
4. Location
Your location in Lithuania additionally impacts your wage.
For instance, residing within the capital space, Vilnius, the common wage is greater than in different elements of Lithuania.
Let’s have a look at how Lithuanian cities fare relating to common month-to-month salaries.
With these 4 components thought of, an agreed-upon employment contract between employer and worker determines the ultimate remuneration per employee.
Disclaimer: The wage info introduced on this article is meant to function a information solely. It’s primarily based on varied wage surveys, and the precise wage could differ primarily based on a number of components.
Curious to see how Lithuania compares to different European nations?
Common salaries of different European nations
Let’s see how different European nations stack up in opposition to Lithuania when it comes to month-to-month salaries.
| Nation | Common month-to-month wage |
| Lithuania | 1,666.9 USD |
| Norway | 5,090.13 USD (134.46% extra) |
| Estonia | 2,868.37 USD (96.79% extra) |
| Montenegro | 2,795.09 USD (94.79% extra) |
| Czech Republic | 2,620.80 USD (89.73% extra) |
| Latvia | 1,935.93 USD (63.98% extra) |
| Ukraine | 620.13 USD (46.655% much less) |
Supply: Salaryexplorer.com
In comparison with the above-listed nations, Lithuania can be a European nation towards the decrease finish of the spectrum.
Now let’s take a more in-depth have a look at the advantages provided to staff in Lithuania.
Further worker advantages provided by employers in Lithuania
Listed below are just a few advantages you’d supply your staff in Lithuania:
- Social safety: In Lithuania, employers and staff make social safety contributions. These funds go in direction of maternity, sick go away, unemployment, and insurance coverage.
- Sick go away: Workers are entitled to a minimal of 28 days per yr of paid sick go away in Lithuania.
- Maternity and paternity go away: In Lithuania, moms obtain a complete of 126 days of maternity go away. Fathers obtain 30 days of paternity go away.
- Trip days: Workers working a 5-day week are entitled to twenty working days off, and staff working a 6-day week are entitled to 24 working days off. These annual go away days could also be used after six months of employment.
Observe: Medical insurance in Lithuania is funded by necessary contributions (6.98%) from staff.
Now let’s see what makes Lithuania a sexy vacation spot for outsourcing.
3 vital advantages of outsourcing to Lithuania
With regards to outsourcing, Lithuania has loads to supply. The nation is understood for its prime quality of labor, value effectivity, and booming IT sector.
1. Extremely expert workforce
An enormous purpose why companies from Canada, Europe, and different areas outsource to Lithuania is the supply of extremely expert employees.
In response to a 2021 Eurostat report, Lithuania ranks third in Europe for the best variety of folks (aged 25-34) who’ve attained tertiary training. At the moment, there are 27,400 IT professionals employed and about 750 future professionals graduating yearly.
There are additionally 22 universities within the nation producing high-quality graduates yearly.
Moreover, Canadian and European firms state that Lithuanians have spectacular English-speaking talents.
In Lithuania, English is the most well-liked overseas language that’s learnt and spoken. Round 30% of Lithuanians converse English which makes the nation a major vacation spot for western companies trying to outsource.
Fast truth: Labor statistics present the Lithuanian employment fee reached an all-time excessive of 74.40% within the second quarter of 2022. In response to Statistics Lithuania, the present unemployment fee in Lithuania is 5.7%, which is lower than in some Baltic states like Latvia (7.10%).
2. Booming IT sector
Lithuania’s expertise sector has developed right into a hub for worldwide firms who need to make the most of a proficient workforce. This growth within the Info Expertise sector means a larger demand for IT professionals.
From AI-driven options to software program engineering and recreation growth, Lithuania’s tech sector affords experience and innovation.
What’s extra?
Large international enterprises equivalent to Google, Nasdaq, IBM, Uber, and many others., have already arrange Analysis and Improvement facilities in Lithuania. Investments like these from firms from america and different nations have additional led to substantial progress within the Lithuanian IT business.
3. Free financial zone (FEZ)
Maybe one of the vital vital benefits of outsourcing to Lithuania is the Free Financial Zone, which refers to giant designated areas reserved for native and outsourcing firms. These might be present in cities like Kaunas, Klaipėda, and many others.
How does the FEZ work?
By beginning an organization within the FEZ and using 20-plus Lithuanians (or everlasting residents), what you are promoting might be exempt from:
- Contribution to company revenue taxes throughout the first ten years.
- Paying dividends and real-estate tax all through your contract.
These tax exemptions and the commercial websites provided by Lithuania make the nation a well-liked vacation spot for rising companies.
Plus, Lithuania has a powerful GDP of 11857.10M EUR, the best GDP per capita of the Baltic states. Since a rustic’s GDP serves as an ideal indicator of its financial system and its whole output, it’s clear why Lithuania is an effective nation for outsourcing.
Ultimate ideas
The common wage in Lithuania is comparatively low in comparison with most different European nations and Baltic states.
With a nation of extremely expert people, an ever-evolving IT sector, and the Free Financial Zone, Lithuania supplies advantages price investing in.
You possibly can make the most of this common wage Lithuania information to understanding if the nation is the very best match for outsourcing what you are promoting processes.
