The new tax reform will come into power from January 1, 2019. This includes changes to the financial expression of wages, albeit in many cases this will only lead to a gross wage increase. Vilnius University Department of Law lecturer, lawyer dr. Vida Petrylaitė notes that the new changes could lead to confusion because the changes are coming into power all at once, lrt.lt writes.
© DELFI / Karolina Pansevič

The jurist reminds that wages will grow "on paper", however this illusion should not conceal that net wages will see no real change. While employers have been asked to multiply agreed wages by 1.289, leading to increased gross wages, due to taxation changes there will be no changes in net wage.

The only exception to this could be related to changes in the untaxed income size for employees, who use second stage pension savings, depending on their choices, V. Petrylaitė points out.

State and municipalities receive EUR 174 mln in unplanned revenue

Lithuania's state and municipal budgets received 5.344 billion euros in revenue in January-June, 3.4...

Sevcovic: EU funding for Baltic synchronization should be sufficient

Lithuania, Latvia and Estonia can further expect sufficient funding for the synchronization of their...

Prime Minister and Vilnius mayor to discuss use of former prison and stadium funding

Lithuanian Prime Minister Saulius Skvernelis is meeting with Vilnius Mayor Remigijus Simasius on...

Numavicius' company plans EUR 200 mln investment in Riga

M.M.M. Projektai , a real estate company owned by Lithuanian businessman Nerijus Numavicius ,...

Prime Minister: government mulls new taxes on property and polluting cars

Lithuanian Prime Minister Saulius Skvernelis says the governmen t is considering broadening the...