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Taxes in Lithuania

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Lithuania.

Taxation of salaries is divided into two parts: the Employer Taxes listed below are paid on top of the gross salary whereas the Employee Taxes listed below are withheld from the gross salary. The total cost of employment consists of the gross salary amount indicated in the employment contract plus the taxes paid on top of the gross salary.

Employer
0.32%

guarantee fund and long-term unemployment fund

1.47% – 3.5%

social security contributions including unemployment social security (lit. nedarbo socialinis draudimas) and social insurance against accidents at work and occupational diseases (lit. nelaimingų atsitikimų darbe ir profesinių ligų socialinis draudimas)

Employee
19.50% - 22.5%

social security contributions (lit. socialinio draudimo įmokos)

20% or 32%*

personal income tax (lit. gyventojų pajamų mokestis), noting that the 32% personal income tax rate in Lithuania is applicable only to employment income exceeding an annual salary of EUR 81,162.

8.72 %

pension insurance (lit. pensijų draudimas)

2.4% - 3%

additional pension insurance (optional) (lit. papildomas pensijų draudimas)

6.98%

health insurance (lit. privalomasis sveikatos draudimas)

2.09%

sickness social security (lit. ligos socialinis draudimas)