The respective amendments to the Law on Income Tax, which were initiated by President Gitanas Nauseda, were passed in a vote of 111 to zero, with one abstention.
According to Nauseda, a higher tax-free income threshold would leave lowest-paid workers with higher disposable income.
Previously, the authorities planned to lift the tax-free income threshold to 400 euros early in 2021.
However, the Seimas turned down another initiative put forward by the president, who called to reduce the income tax rate by 5 percentage points until the end of December.