Lithuanian lawmakers propose an annual “13th salary”

Lithuanian lawmakers have proposed introducing a once-yearly employee bonus known as a “13th salary,” arguing that it could strengthen motivation and loyalty at work.

The amendments, registered by Karolis Neimantas of the Nemunas Dawn parliamentary group and other lawmakers, would allow employers to pay the bonus in December or January. Its value could not exceed the employee’s average monthly wage over the previous 12 months.

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For the employer, it would become an excellent way to reward responsible work, while for the employee it would provide a significant additional annual income.

Employers would be exempt from additional taxes on the payment, while employees would not pay compulsory health or social insurance contributions, provided the bonus stayed within the proposed threshold of two average wages from the latest quarter. Taxes and contributions would apply only to the portion above that limit.

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Receiving the bonus, the employee would become more loyal, more interested in staying in their position and in pursuing long-term annual results.

The lawmakers described the payment as discretionary rather than a mandatory profit-sharing scheme. Their explanatory note says it could reward responsible work, provide employees with meaningful additional annual income and encourage them to remain in their jobs while pursuing longer-term results.

The proposal cites Italy and Belgium as countries where a 13th salary is paid, and Spain and Portugal as countries where both 13th and 14th salaries are common. France does not apply an annual extra salary universally, but collective agreements often include it. The amendments would take effect on Jan. 1, 2027, if adopted. Lithuania’s current Labour Code allows employers to award bonuses for good work or individual and company performance, but does not establish an annual incentive payment.

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This is an employee incentive measure whose terms can be set by the employer.