Salary Calculator
Lithuania

Our payroll calculator for Lithuania helps businesses estimate employee net salaries based on gross earnings, tax regulations, and mandatory social contributions.

Simply enter the employee’s gross salary, and the calculator will automatically apply Lithuania’s income tax rate, along with employer and employee social security contributions, including health insurance and pension deductions.

With all statutory deductions accounted for, the calculator provides the final net salary, giving businesses a clear understanding of payroll costs and employee take-home pay.

The total salary cost in Lithuania consists of several components, including an income tax rate and contributions from both the employer and the employee.

Starting with the gross salary - it is considered the agreed-upon amount before any deductions and serves as the base for all calculations. Employers are required to contribute 19.5% of the gross salary for social insurance covering pension, health, and other mandatory insurance, while employees contribute 1.77% for social insurance.

After subtracting all these contributions from the gross salary, you get an overview of the net salary.

Employed individuals in Lithuania are subject to an income tax rate depending on the level of their income. 

A progressive income tax rate of 20% is applied to most employees with annual earnings below the upper limit of the social security threshold, which is variable and updated annually. Income exceeding the annual threshold is taxed at a higher rate of 32%, where the threshold is set at six times the average annual gross salary.

*Please note that these rates can vary based on legislative changes.

Lithuanian employees are entitled to a variety of employment benefits, including social protections and leave entitlements. 

Social security benefits are funded through employer and employee contributions, and they include pension plans, health insurance, unemployment benefits, maternity and paternity benefits, and others.

Lithuanian employees are also entitled to paid time off, including annual leave, sick leave, maternity and paternity leave, parental leave, and others.

Beyond the mandatory employee benefits, Lithuanian employers offer additional perks for their team members. Such benefits are not required by law but are increasingly common among Lithuanian employers.

Starting from private health insurance, many employers offer coverage for additional healthcare services such as dental care, specialist consultations, and quicker access to medical treatments. Some employers also offer perks like gym memberships, wellness programmes, and even mental health support programmes for their team members.

Finally, many Lithuanian employees receive childcare support, transportation reimbursements, meal vouchers, and other similar types of extra benefits. 

The terms gross salary and net salary represent different stages of an employee’s earnings after mandatory deductions. The gross salary is the total amount agreed upon between the employer and the employee before any deductions. It includes the base salary, bonuses or commissions, and any other taxable benefits. 

On the other hand, the net salary is the amount the employee takes home after all mandatory deductions have been subtracted from the gross salary. It includes employee social insurance contributions and personal income tax. 

In simple terms, the gross salary is the amount of salary before deductions, while the net salary is the take-home pay after taxes and contributions are deducted.