Sodra Lithuania 2026: Social Insurance Rates 19.5% and Cap — Lithuania
Lithuania's mandatory social insurance system (Sodra) funds pensions, healthcare, unemployment, maternity/paternity benefits. Employee contributions 19.5% plus employer contributions make total burden approximately 21-22%.
Sodra Lithuania 2026: Social Insurance Rates 19.5% and Cap
Lithuania's mandatory social insurance system (Sodra) funds pensions, healthcare, unemployment, maternity/paternity benefits. Employee contributions 19.5% plus employer contributions make total burden approximately 21-22%.
Employee Contributions 2026
Pension, sickness and maternity insurance 12.52% (capped at 60 average salaries, €138,729/year) plus health insurance 6.98% (no cap). Automatically withheld from gross salary.
When annual income exceeds 60 times average monthly salary (€138,729 in 2026), only health insurance 6.98% continues. Pension and other contributions stop.
If you participate in Tier II pension accumulation, an additional 3% of gross salary is deducted. Participation is voluntary. State contributes 1.5% of average salary. Can opt out.
Employer Contributions
Employer pays 1.77% for permanent employees. Plus additional funds: Guarantee Fund 0.16%, Long-term Employment Fund 0.16%, Accident Insurance (varies by risk).
Higher rate 2.49% for fixed-term contracts. Plus same additional funds as permanent employees.
Combined employee+employer minimum €245.24 based on minimum wage €1,153. Applies if earning less than minimum wage.
Self-Employed Contributions
From 2026, unified base: contributions calculated on 90% of taxable income from business certificate activities. Rates vary by activity type.
Pay both employee and employer portions if conducting individual activity. Must pay on at least minimum wage basis if primary activity.
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Personal Income Tax 2026
Major reform in 2026: most income types combined into progressive three-tier system (20%/25%/32%). Replaces previous two-tier system. Administered by State Tax Inspectorate (VMI).
03Business Taxation
Corporate tax rate increased to 17% from 2026. Startups get preferential 0%/7% rates. Investment Account scheme for deferring investment taxes. Group taxation regime.