Linas Jegelevičius
The year 2025 has ushered in plenty of novelties in Lithuania. Among the most significant changes are higher pensions, rising fuel prices, and more expensive alcohol and tobacco. However, for many Lithuanians, these changes may still feel intangible.
“As an accountant, I encounter new changes impacting our field every year, so staying up to date is essential to keep pace,” said Rūta Ūsaitė-Duonielienė, owner of UAB “Žinius”, an accounting and consulting company in Klaipėda, Lithuania’s third-largest city. “Living with the stress brought by changes in the profession is simply part of an accountant’s life,” she told BNN.
From 2025, the minimum monthly wage (MMW) will increase to 1 038 euros,
up by 114 euros or 12% from the current 924 euros. The minimum hourly wage will also rise to 6.35 euros from the current 5.65 euros. After taxes, individuals earning the MMW will see a net income increase of 69 euros, reaching 777 euros.
Old-age pensions will also increase.
In 2025, the average old-age pension will rise by approximately 73 euros to 673 euros. For those with the required length of service, the average pension will increase by 81 euros, reaching 721 euros. The average old-age pension will gradually approach 50% of the average net salary.
“I haven’t yet determined how much my pension will increase, but other pensioners have told me it averages 60 to 70 euros,” Adolfas Sendrauskas, an octogenarian resident of Palanga, Lithuania’s Baltic resort, told BNN.
Despite rising living costs, he is prepared to help his daughter purchase her own apartment and plans to spoil his grandchildren generously.
Starting from the 1st of January, the basic salary coefficients for the lowest-paid employees of budgetary institutions will increase.
Considering the MMW of 1 038 euros from 2025, the basic salary coefficients for qualified specialists will be higher than the salaries of unqualified workers, which are set at the MMW level, and increase by 5 to 12% – from 53 euros to 124 euros.
Teachers, school librarians, and educational specialists will receive salary increases starting the 1st of September 2025. The average gross salary for teachers will rise to 3 106 euros, an increase of 8.2%.
State pensions will increase by 1.75%, with the base rising from 72.35 euros to 73.62 euros. The single-person allowance and widow(er)’s pension will rise to 42.29 euros.
The base for social benefits will also increase.
The basic social benefit will rise to 70 euros, the social pension base to 248 euros, and the targeted compensation base to 208 euros. State-supported income will increase to 221 euros. As a result, other benefits such as child benefits, one-time childbirth grants, and allowances for studying or caregiving will also rise.
Unemployment benefits, calculated based on the MMW, will increase to a fixed amount of 241.54 euros, up from 215.01 euros this year. The average unemployment benefit will rise by approximately 52 euros to 525.5 euros.
“This is important for those unemployed, especially in small towns,” observes Vilma Dainienė, owner of VšĮ “Globalūs projektai.”
The mandatory health insurance contribution will increase, corresponding to 6.98% of the MMW, amounting to 72.45 euros per month. Those engaged in self-employment or holding business licenses will also face higher social insurance contributions.
Alcohol and tobacco prices will rise due to higher excise taxes,
with beer, wine, and spirits seeing price increases of up to 69 cents. Tobacco products will also become more expensive, with electronic cigarette liquid experiencing the steepest price hikes.
“When the state is cash-strapped, it always resorts to raising taxes and increasing the prices of alcohol and cigarettes. However, in my experience, there are far fewer smokers nowadays – not just because of the higher cigarette prices but also due to health concerns,” observes A. Sendrauskas.
Fuel prices are expected to rise due to increased excise taxes,
including a CO2 component. Gasoline prices could rise by 0.06 euros per litre, diesel by 0.13 euros, and liquefied petroleum gas by 0.04 euros.
Electricity prices will increase by about 4%, with “standard” one-zone tariffs rising to 20.5 cents per kWh. Natural gas prices will also rise for most users due to higher product costs.
Bank service fees will decrease:
the cost of the primary account services package will drop to 1 euro per month for regular users and 0.50 euro for low-income individuals. The cash withdrawal limit included in the package will increase to 800 euros.
An investment account innovation will be introduced, allowing tax deferral on reinvested income. However, tax reliefs for third-pillar pension funds and life insurance contributions will be discontinued for new agreements signed after 2024.
Meanwhile, the corporate income tax in Lithuania has increased by 1% from 2025.
“As the owner of a small company, I was paying a 5% rate until the beginning of this year. However, now I will have to pay 6%,” V. Dainienė told BNN.
From the 1st of January, driver’s licenses without valid medical certificates will be invalid. Medical checks will be automatically updated in the system.
Changes to the Labor Code will include stricter rules on additional work agreements and mandatory higher overtime pay for holiday shifts. Employers will also require written consent for overtime work.
“For me, this will be the most important change, as employers often ask employees to work extra hours without compensation, and mine is not an exception,” a Klaipeda-based worker told BNN.
New Labor Code provisions will explicitly prohibit harassment and violence against employees or employers.