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, 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.

Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

Welcome to Vilnius workshops to support foreign talent relocating to Lithuania’s capital

This Tuesday Vilnius’ business development and tourism agency Go Vilnius at the Workland Business...

2018 was marked as the best year for Lithuanian cinema market after the restoration of independence

The Lithuanian film centre have summarized the local box office results - in 2018 distribution reached...

The number of foreign startups choosing Lithuania for starting their businesses is growing

Last year, the Startup Visa received 178 applications of foreign companies for participation in the...

Lietuvos Geležinkeliai starts Rail Baltica territory planning (1)

Lietuvos Geležinkeliai [Lithuanian Railways] is initiating the European gauge Rail Baltica...

Internet connection in Lithuania – one of the cheapest in the European Union

According to the study of the European Commission , Lithuania is among four Member States of the...