# Lithuania Payroll & Social Contributions

## Lithuania Payroll & Social Contributions

## Social insurance (Sodra) and payroll - 2025

- **Employer withholding overview** — Employers withhold personal income tax (GPM) and social insurance contributions (Sodra) from employees and pay an employer contribution on top. Standard employee contributions total roughly 19.5% of gross pay and the standard employer contribution about 1.77%.
- **Employee social insurance - total** — ~19.5% of gross salary (pension 8.72%, health 6.98%, plus sickness/maternity/unemployment) percent  _(Law on State Social Insurance (Valstybinio socialinio draudimo istatymas) — https://www.sodra.lt/en/benefits/contribution-rates/contribution-rates-for-employees)_
- **Employee pension contribution** — 8.72% (12.52% if enrolled in additional Pillar II accumulation) percent ((approx - confirm))  _(Law on State Social Insurance — https://www.sodra.lt/en/benefits/contribution-rates/contribution-rates-for-employees)_
- **Employee compulsory health insurance (PSD)** — 6.98% of gross salary percent  _(Law on Health Insurance (Sveikatos draudimo istatymas) — https://www.sodra.lt/en/benefits/contribution-rates/contribution-rates-for-employees)_
- **Employer social insurance - standard** — ~1.77% of gross salary (social insurance 1.45% + Long-term Employment Fund 0.16% + Guarantee Fund 0.16%) percent  _(Law on State Social Insurance — https://boundlesshq.com/guides/lithuania/taxes/)_
- **Social insurance contribution ceiling** — 60 times the average monthly wage per year (~EUR 138,270 for 2025); above the cap only 6.98% health insurance continues EUR ((approx - confirm))  _(Law on State Social Insurance — https://taxsummaries.pwc.com/lithuania/individual/other-taxes)_
- **Minimum contribution base** — Contributions calculated on at least the minimum monthly wage (EUR 1,038 in 2025) EUR  _(Law on State Social Insurance — https://mercans.com/resources/statutory-alerts/lithuania-updates-to-minimum-wage-non-taxable-amount-and-sodra-rate/)_
- **Minimum monthly wage (MMA)** — EUR 1,038 per month (2025) EUR  _(Government Resolution on the Minimum Monthly Wage — https://elvprojektai.lt/en/news/minimum-wage-in-lithuania-2025-2026/)_
- **Payroll income tax withholding (GPM)** — Employer withholds 20% GPM on salary (32% on the portion above the upper-rate ceiling), net of applicable NPD  _(Law on Personal Income Tax — https://taxsummaries.pwc.com/lithuania/individual/taxes-on-personal-income)_
- **Withholding remittance deadline** — GPM and Sodra contributions remitted by the 15th of the month following payment (Sodra declaration SAM/GPM313) ((approx - confirm))  _(Law on State Social Insurance — https://www.sodra.lt/en/benefits/contribution-rates/contribution-rates-for-employees)_