Calculate Salary in Lithuania
Lithuania Salary Calculator 2026
Build accurate, tax-compliant salary packages for Lithuanian employees with confidence. Calculate gross to net salary in Lithuania instantly, including income tax (GPM), employee social insurance (Sodra), and total employer cost in EUR.
Start Hiring in Lithuania
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
From Cost to Candidates in One Click
Learn how Qureos helps recruiters cut hiring costs and connect with pre-qualified talent faster in Lithuania
What's Included
Everything you need to build a Lithuania offer
Gross to Net Salary Calculator
Enter any gross monthly salary and instantly see the exact net take-home after income tax (GPM mokestis), employee social insurance (Sodra), and the non-taxable income allowance (NPD).
Social Insurance (Sodra) Breakdown
See all statutory Sodra contributions itemised, covering pension, health, and sickness insurance, with employee and employer shares clearly split for accurate total cost budgeting.
Non-Taxable Allowance (NPD) Support
Apply the neapmokestinamasis pajamų dydis (NPD) automatically based on salary level. This income-dependent allowance significantly reduces the GPM tax base for lower and mid-income employees.
Total Employer Cost View
Instantly see total employer cost including all employer Sodra contributions, essential for headcount budgeting and workforce planning when hiring in Lithuania.
How It Works
Three steps to a confident Lithuania offer
01
Enter Gross Salary
Input the gross monthly salary in EUR. Lithuanian salaries are quoted as monthly gross figures and must not fall below the statutory minimum monthly wage (minimalus mėnesinis darbo užmokestis) set by the government.
02
Select Employment Type and Dependants
Choose the employee's employment category and number of dependent children. These affect the applicable NPD (non-taxable income allowance), directly reducing the GPM tax liability.
03
Get Full Breakdown
Instantly see gross salary, employee Sodra contributions, GPM income tax after NPD, net take-home pay in EUR, and total employer cost including all employer Sodra contributions.
Try other Salary tools for
Lithuania Salary Guides
What Is Gross Salary in Lithuania?
Gross salary in Lithuania (bruto darbo užmokestis) is the total monthly compensation agreed in the employment contract before employee social insurance contributions (Sodra) and personal income tax (GPM, gyventojų pajamų mokestis) are deducted. Lithuanian salaries are quoted as monthly gross figures in EUR. When making salary offers for roles in Vilnius, Kaunas, Klaipėda, or Šiauliai, the gross monthly figure is the standard reference in employment contracts. The gross salary must not fall below the statutory minimum monthly wage (MMA) set by the government each year. Lithuania adopted the euro in 2015 and all payroll calculations are conducted in EUR.
What Is Net Salary in Lithuania?
Net salary (neto darbo užmokestis) is what the employee actually receives after employee Sodra social insurance contributions and GPM personal income tax have been deducted. Understanding the gross to net Lithuania calculation is essential for recruiters and hiring managers making competitive offers in the country. Lithuanian employees typically retain approximately 72% to 78% of their gross salary as net take-home, depending on income level and the applicable non-taxable income allowance (NPD, neapmokestinamasis pajamų dydis). The NPD is income-dependent and phases out at higher salary levels, making it particularly beneficial for lower and mid-income earners. Lithuania's atlyginimo skaičiuoklė must correctly apply the NPD to accurately reflect actual take-home pay.
What Is GPM (Personal Income Tax) in Lithuania?
GPM (gyventojų pajamų mokestis) is Lithuania's personal income tax on employment income. Lithuania applies two GPM rates depending on the level of annual income:
GPM is applied on the taxable income, which is the gross salary minus employee Sodra contributions and the applicable NPD (non-taxable income allowance). For the vast majority of Lithuanian employees earning below EUR 8,425 per month, only the 20% rate applies. The 32% rate applies only to the portion of income exceeding the threshold, not to the entire salary.
What Is NPD (Non-Taxable Income Allowance) in Lithuania?
The NPD (neapmokestinamasis pajamų dydis) is Lithuania's non-taxable income allowance, deducted from the GPM tax base before the income tax rate is applied. The NPD is income-dependent and reduces as monthly gross salary increases, phasing out entirely at higher income levels. In 2026, the NPD formula is:
- Monthly gross salary up to EUR 747: Full NPD of EUR 625 per month
- Monthly gross salary EUR 747 to EUR 2,864: NPD = 625 − 0.42 × (gross − 747), tapering to zero
- Monthly gross salary above EUR 2,864: NPD = 0
The NPD significantly reduces the effective GPM rate for employees earning up to approximately EUR 2,864 per month, making Lithuania's income tax system more progressive in practice than the flat headline rate suggests. For an employee earning the minimum wage of EUR 1,038 per month, the NPD reduces the taxable base substantially, resulting in very low effective income tax.
What Are Sodra Contributions (Social Insurance) in Lithuania?
Both employees and employers in Lithuania contribute to the Sodra state social insurance fund. Sodra covers pension insurance, health insurance, sickness benefits, maternity and paternity leave, and unemployment benefits. The 2026 contribution rates are:
Total employee Sodra contributions are 19.5% of gross salary (8.72% + 3.48% + 6.98% + 0.16% + 0.16% for pension fund II). Total employer Sodra contributions are approximately 1.77% + 1.47% + 3.0% + 0.16% + 0.16% = 6.56% of gross salary. Note that employees may also contribute to the second pillar pension fund (pensijų kaupimas II pakopa) at an additional 3% of gross salary, but this is a separate voluntary/mandatory funded element and is not included in the base calculation here.
What Is the Second Pillar Pension in Lithuania?
The second pillar (pensijų kaupimas, II pakopa) allows employees to contribute an additional 3% of gross salary to an individual funded pension account. This contribution reduces the GPM taxable base, making it tax-efficient. The state adds a matching contribution of 1.5% of the average national wage for all participants. Second pillar participation is approaching near-universal coverage among working-age Lithuanian employees.
How to Manage Payroll in Lithuania
Lithuanian payroll is regulated by the Labour Code (Darbo kodeksas) and administered by the State Tax Inspectorate (VMI, Valstybinė mokesčių inspekcija) and Sodra (State Social Insurance Fund Board). Key compliance requirements when hiring in Lithuania include:
- Registering as an employer with Sodra and the VMI before the employee's first working day.
- Registering each employment contract with Sodra before the start date via the Sodra electronic self-service system.
- Withholding and remitting GPM monthly to the VMI by the 15th of the following month.
- Paying employee and employer Sodra contributions monthly to Sodra by the 15th of the following month.
- Issuing a monthly payslip (darbo užmokesčio žiniaraštis) detailing gross pay, all deductions, and net pay.
- Adhering to the statutory minimum monthly wage (MMA) of EUR 1,038 gross per month in 2026.
- Submitting monthly payroll declarations (FR0600 form) to the VMI by the 15th of the following month.
- Ensuring compliance with any applicable sector-level collective agreements (kolektyvinės sutartys).
How Much Tax Is Applied on Salary in Lithuania?
For an average employee earning EUR 1,800 gross per month:
- Employee Sodra: 19.5% of gross salary
- GPM income tax: 20% on taxable income (gross minus Sodra minus NPD) up to EUR 101,094/year
- NPD: EUR 625/month at minimum wage, tapering to zero above EUR 2,864/month
- Employer Sodra: approximately 6.56% on top of gross salary
Minimum Wage in Lithuania
Lithuania's minimum monthly wage (minimalus mėnesinis darbo užmokestis, MMA) is set annually by the government. As of January 2026, the MMA is EUR 1,038 gross per month. The net take-home at the minimum wage level after Sodra and GPM deductions (with full NPD applied) is approximately EUR 786 per month. Lithuania has been increasing the minimum wage significantly each year as part of a policy to converge with Western European wage levels, with the MMA nearly doubling over the past decade. The minimum wage in Lithuania applies to all employees on full-time employment contracts regardless of sector, region, or employer size.
Average Salary in Lithuania
The average salary in Lithuania is approximately EUR 1,900 to EUR 2,200 gross per month across all sectors according to Statistics Lithuania data for 2026. After Sodra and GPM, net take-home is roughly EUR 1,380 to EUR 1,580 per month. Vilnius typically pays 25 to 40% above the national average. IT and technology, financial services, manufacturing, and professional services pay well above average. Lithuania has one of the fastest-growing wage levels in the EU.
Your Questions Answered
How is net salary (neto atlyginimas) calculated in Lithuania?
Net salary in Lithuania is calculated by deducting employee Sodra contributions (19.5% of gross) and GPM income tax (20% on gross minus Sodra minus NPD) from gross salary. For an employee earning EUR 1,800 gross per month, the approximate net salary is EUR 1,280 to EUR 1,340. The NPD at this salary level is approximately EUR 119 per month, which reduces the taxable base. The atlyginimo skaičiuoklė above gives the precise figure instantly based on gross salary and dependants.
What is NPD and how is it calculated?
The NPD (neapmokestinamasis pajamų dydis) is Lithuania's non-taxable income allowance that reduces the GPM tax base. In 2026, the full NPD of EUR 625 per month applies to employees earning up to EUR 747 gross per month. For incomes between EUR 747 and EUR 2,864 per month, the NPD tapers using the formula: NPD = 625 − 0.42 × (gross monthly salary − 747). Above EUR 2,864 gross per month, the NPD is zero. This means lower-income employees pay significantly less GPM than the headline 20% rate suggests, as a substantial portion of their income is not taxable.
What is Sodra and what does it cover?
Sodra (Valstybinio socialinio draudimo fondo valdyba) is Lithuania's state social insurance fund, administering contributions for pension insurance, sickness and maternity benefits, health insurance, and unemployment. Employee Sodra contributions total 19.5% of gross salary, covering pension insurance (8.72%), sickness and maternity (3.48%), health insurance (6.98%), and unemployment (0.16% + 0.16% for II pillar). Employer Sodra contributions are approximately 6.56% of gross salary. Sodra contributions have no annual ceiling for the standard rates.
What are total employer costs when hiring in Lithuania?
Beyond gross salary, Lithuanian employers must budget for employer Sodra contributions of approximately 6.56% of gross salary. For an employee earning EUR 1,800 gross per month, the total employer cost is approximately EUR 1,918 per month (EUR 1,800 + EUR 118 employer Sodra). Lithuania has one of the lowest employer social contribution rates in the EU, making it a highly competitive location for employment from an employer cost perspective. This low employer burden is one of the key reasons why Lithuania has attracted significant inward investment in shared services and technology sectors.
What is the minimum wage (MMA) in Lithuania in 2026?
The minimum monthly wage (minimalus mėnesinis darbo užmokestis, MMA) in Lithuania is EUR 1,038 gross per month as of January 2026. The net take-home at this level after Sodra and GPM (with full NPD applied) is approximately EUR 786 per month. Lithuania's MMA has been increasing significantly each year, nearly doubling over the past decade. It applies to all full-time employees regardless of sector, region, or employer size. The minimum hourly wage equivalent is approximately EUR 6.34 per hour for standard 40-hour working week arrangements.
What is the second pillar pension (II pakopa) in Lithuania?
The second pillar pension (pensijų kaupimas, II pakopa) is a funded individual pension account in Lithuania. Participating employees contribute an additional 3% of gross salary to their personal pension fund account. This contribution reduces the GPM taxable base, making it tax-efficient. The state also adds a matching contribution of 1.5% of the average national wage for all participants. The second pillar is separate from the base Sodra contributions and is shown as an additional optional deduction in detailed salary calculations. Participation has grown significantly and is approaching near-universal coverage among working-age Lithuanian employees.
Does Lithuania have a high income tax compared to other EU countries?
Lithuania's headline GPM rate of 20% is one of the lower income tax rates in the EU. However, the high employee Sodra contributions (19.5%) mean that total employee deductions are approximately 35 to 38% of gross salary for mid-income earners. The effective rate is reduced by the NPD allowance for employees earning below EUR 2,864 per month. For high earners above EUR 101,094 per year, the 32% GPM rate applies to the portion above the threshold. Overall, Lithuania's effective income tax burden is moderate by EU standards, particularly for mid-range earners benefiting from the NPD, and the low employer Sodra rate (6.56%) makes Lithuania very competitive on total employer cost.
