What is Lithuania average salary How does it compare to other countries?
The average salary in Lithuania, located in the Baltic region of Europe, is €11,382 per yearAt December 2022 exchange rates, this equates to approximately US$11,947.29 per year.
compared to average salaries in developed countries England (US$86,516.69 per year) and America (US$94,700 per year), Lithuania stands out as an attractive outsourcing destination for foreigners.
In this article, we take a look at statistics related to average salaries in Lithuania, how this Baltic country compares to others and why outsourcing to Lithuania is a good idea.
Alright, let’s go.
What is the average salary in Lithuania?
Average Monthly Salary in Lithuania in 2022 is 1,666.9 EUR/month (gross salary). This equates to approximately $1,749.69 USD per month.
this average monthly income Includes transportation, housing and other allowances.
Note: Before officially adopting the euro in 2015, Lithuania used the Lithuanian litas as its currency.
Let’s take a look at some statistics to get a better idea of the average salaries in Lithuania.
1. Average salary
Median salary refers to the midpoint of all salaries. This means that his 50% of employees earn more than the median salary, and his remaining 50% less.
of Average salary in Lithuania teeth €984.70 per month. This equates to $1037.21 USD per month.
2. Upper and lower salary limits
The average minimum salary in Lithuania is 240.38 EUR Around Month (USD 253.12), the maximum average wage is 4,228.54 EUR Around Month (US$4,452.73).
However, minimum minimum and maximum salaries may vary depending on educational background, experience, location, etc.
Note:
The personal income tax rate for Lithuanian employees is 20% (if the monthly salary is less than EUR 7,520.50) and 32% (if the monthly salary is greater than EUR 7,520.50 annually).
3. Average annual salary increase
Lithuanian employees usually average 8% salary increase every 18 months.
“Annual pay increase” means a raise every 12 months, but this is not always the case. The frequency of salary increases varies by company and is stated in the job description.
Let’s look at different increment values based on different factors.
A. Average annual growth rate by industry
Below are the average annual growth rates by industry.
| industry | average growth rate |
| trip | 8% |
| banking | 7% |
| construction | 6% |
| energy | Five% |
| education | Four% |
| information technology | 3% |
| health care | 1% |
Source: Salaryexplorer.com
B. Average salary increase based on experience
Here are the average salary increases based on experience.
| degree of experience | average growth rate |
| Junior | 3-5% |
| Mid-career recruitment | 6-9% |
| Senior | 10-15% |
| top management | 15-20% |
Source: Salaryexplorer.com
5. Minimum wage
As of Q3 2022, the Lithuanian minimum wage is 730 euros per monthThis equates to US$769.40.
This is the minimum wage that workers should receive, but they can also receive higher wages. For example, in Vilnius (capital) the average wage is 1,050 euros per month.
Labor law stipulates that working hours should not exceed 40 hours per week. Therefore, the minimum wage is calculated taking into account: 40 hours work week (8 hours per day).
In Lithuania, the minimum wage is determined by the government on the recommendations of the Tripartite Council. This council is made up of government representatives, employee and employer representatives, and her three independent experts.
Average Annual Wage in 2021 4.47 euros per the time is January 1, 2023The minimum hourly wage will be increased to 5.14 euros.
Now let’s take a look at the different factors that affect salaries in Lithuania.
average salary comparison
The average salary in Lithuania depends on several factors such as experience, level of education, field of work, job title and location.
Here’s a breakdown of the salary comparison based on these key factors:
1. Experience
more experience The more employees are under their belt, the higher they are paid.
| Work experience level (years) | salary Difference (%) |
| <2 years | basic 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 |
| over 20 years | 9% more |
Source: Salaryexplorer.com
2.Education level
in Lithuania, 57% Percentage of citizens aged 25-34 who have a tertiary education.
Let’s see how differences in educational qualifications affect salaries in Lithuania.
- Employees with a certificate or diploma earn 17% more than those with a high school degree.
- Those with a bachelor’s degree earn 24% more than those with only a diploma or certificate.
- Employees with a master’s degree earn 29% more than those with a bachelor’s degree.
- And finally, a Ph.D. The owner earns 23% more than someone with a master’s degree.
3. Occupation
Ultimately, your career field can have a big impact on your salary. This is because salaries can vary as follows:
- Sector (public and private sector).
- Occupation (information technology, human resources, medical field, etc.)
Monthly salaries also vary depending on the type of work within each industry (freelance, part-time, full-time, etc.).
according to salary explorer, The highest paid jobs in Lithuania are in the medical sector and the judicial system. The highest salaries belong to surgeons and doctors (3,533.36 euros per month).
Let’s take a closer look at other jobs in Lithuania and their average monthly salaries.
| Profession | average monthly income |
| market research analyst | 1,146.89 Euro |
| management analyst | 1,120. 82 euros |
| project manager | 1,057.11 Euro |
| Software Developer/Programmer | 981.81 EUR |
| Software Engineer | 941.26 EUR |
| HR specialist | 897.82 EUR |
| marketing specialist | 874.65 EUR |
| Realtor | 822.52 euros |
| loan officer | 622.68 EUR |
| Internal Compliance Officer | 593.72 euros |
| sales representative | 596.61 EUR |
Source: Salaryexplorer.com
4. Location
Your place of residence in Lithuania also affects your salary.
For example, if you live in the capital Vilnius, the average salary is higher than in the rest of Lithuania.
Let’s take a look at the average monthly income in each city in Lithuania.
Considering these four factors, the employment contract agreed between the employer and the employee determines the final compensation per employee.
Disclaimer: of salary The information provided in this article is intended to serve as a guide only.based on various salary surveyand the actual salary It may vary depending on several factors.
i want to know how Lithuania Compared to other European countries?
Average salary in other European countries
Let’s see how other European countries stack up against Lithuania in terms of monthly salaries.
| Country | average monthly income |
| Lithuania | 1,666.9 USD |
| Norway | USD 5,090.13 (up 134.46%) |
| Estonia | USD 2,868.37 (up 96.79%) |
| Montenegro | 2,795.09 USD (94.79% higher) |
| Czech Republic | USD 2,620.80 (up 89.73%) |
| Latvia | USD 1,935.93 (up 63.98%) |
| Ukraine | USD 620.13 (down 46.655%) |
Source: Salaryexplorer.com
Compared to the countries listed above, Lithuania is a European country towards the lower end of the spectrum.
Now let’s take a closer look at the benefits offered to Lithuanian employees.
Additional Employee Benefits Offered by Lithuanian Employers
Here are some benefits we offer our employees in Lithuania:
- social security: In Lithuania, employers and employees pay social insurance contributions. These funds are used for maternity, sick leave, unemployment and insurance.
- Sick leave: In Lithuania, employees are entitled to at least 28 days of paid sick leave per year.
- Maternity/childcare leave: In Lithuania, mothers get a total of 126 days of maternity leave. A father can take her 30 days of parental leave.
- Vacation days: An employee who works five days a week gets 20 days of vacation, and an employee who works six days a week gets 24 days of vacation. Annual paid leave can be used from the 6th month after joining the company.
Note: Health insurance In Lithuania, it is funded by mandatory employee contributions (6.98%).
So let’s see why Lithuania is an attractive destination for outsourcing.
3 Big Benefits of Outsourcing to Lithuania
When it comes to outsourcing, Lithuania has a lot to offer. The country is known for its high-quality jobs, cost-effectiveness and a booming IT sector.
1. Highly skilled workforce
A big reason companies in Canada, Europe and elsewhere outsource to Lithuania is the availability of highly skilled workers.
according to Eurostat Report 2021, Lithuania ranks third in Europe for the number of people (aged 25-34) who have completed tertiary education. Currently, 27,400 of her IT professionals are employed and approximately 750 future professionals graduate each year.
There are also 22 universities in the country that produce high quality graduates every year.
Additionally, Canadian and European businesses say Lithuanians have an impressive ability to speak English.
English is the most popular, learned and spoken foreign language in Lithuania.around it 30% of Lithuanians speak English, making the country a prime destination for Western companies looking to outsource.
A quick fact: Labor statistics show Lithuania’s employment rate hits all-time high 74.40% Second quarter of 2022. According to statistics Lithuania, the current unemployment rate in Lithuania he is 5.7%, lower than the Baltic countries such as Latvia (7.10%).
2. A booming IT sector
Lithuania’s technology sector has developed into a hub for international companies looking to tap into its skilled workforce.in this boom information technology The sector means that demand for IT professionals will increase.
From AI-driven solutions to software engineering to game development, the Lithuanian tech sector offers expertise and innovation.
Besides?
Giant global companies such as Google, Nasdaq, IBM and Uber have already set up R&D centers in Lithuania. Such investments from companies in the US and other countries have further led to the significant growth of his IT industry in Lithuania.
3. Free Economic Zone (FEZ)
Perhaps one of the most important advantages of outsourcing to Lithuania is the Free Economic Zone. This refers to a large designated area reserved for local and outsourcing companies. These can be found in Kaunas, Klaipeda and other cities.
How does FEZ work?
By starting a company in FEZ If you employ 20 or more Lithuanians (or permanent residents), your business is eligible for the following exemptions:
- Contribution to corporate tax for the first 10 years.
- Dividends and property taxes are paid during the term of the contract.
These tax exemptions and the industrial land Lithuania offers make Lithuania a popular destination for business growth.
Furthermore, Lithuania has the highest per capita GDP among the Baltic countries with a GDP of 11,857.1 million euros. It is clear why Lithuania is a good country for outsourcing, as a country’s GDP serves as a good indicator of its economy and total production.
final thoughts
Average salaries in Lithuania are relatively low compared to most other European and Baltic countries.
With a country of highly skilled individuals, an evolving IT sector and a free economy, Lithuania offers advantages worth investing in.
This median salary Lithuania guide will help you decide if the country is a good fit for outsourcing your business processes.
