FAQ

Common questions about how Lithuanian salaries are calculated, and about how the tools on this site work.

The basics

What is the difference between gross and net pay?

Gross pay (bruto) is the figure you agree in your employment contract. Net pay (neto, or take-home pay) is what is left of it after income tax (GPM), social insurance (VSD) and health insurance (PSD) are deducted.

Job adverts in Lithuania usually quote the gross figure, which is why the gap comes as a surprise — showing it is exactly what this calculator is for.

What does the cost of employment mean?

It is the total your employer spends on your job: gross pay plus the employer's Sodra contribution. In 2026 that contribution runs from 1.77% to 3.75% of gross, depending on the contract type and the accident insurance group.

It is worth knowing when negotiating: the employer's budget is bounded by that total, not by what reaches your account.

Is the calculator free? Do I need an account?

Yes, it is free, and there is nothing to register for. No accounts, no subscriptions, and no limit on how many times you can calculate.

Can I calculate the other way round, from take-home pay to gross?

Yes. Pick the take-home (neto) direction at the top of the calculator and enter the amount you want — it will show the gross salary you would need to ask for.

Taxes

What are the 2026 income tax rates?

Income tax (GPM) is progressive: 20% on income up to €83,237.40 a year, 25% from there up to €138,729, and 32% on anything above that.

Your employer withholds 20% every month. You settle the remaining progressive portion yourself the following May, with your annual return (GPM311). Where your salary makes that relevant, the calculator shows the amount separately.

What is VSD and how much is it?

VSD is state social insurance — the Sodra share deducted from your pay: 12.52% of gross. It funds pensions and sickness, maternity and unemployment benefits.

It is not charged on an unlimited amount: above €11,560.75 a month, no further VSD is taken on the excess.

What is PSD?

PSD is compulsory health insurance, 6.98% of gross. It is what entitles you to state-funded healthcare. Unlike VSD, it has no ceiling.

What is the tax-free allowance (NPD), and why does it shrink as pay rises?

NPD is the portion of your pay that income tax is not charged on. The larger it is, the more you take home.

Up to the minimum monthly wage (€1,153) you get the full €747. Above that it falls by 49% of every additional euro, disappearing entirely at around €2,677. That is why your effective tax rate rises faster than the headline income tax rate suggests.

If a level of reduced capacity for work, disability, or special needs has been established, a fixed allowance applies instead — €1,127 or €1,057 — which does not depend on your salary. You can select it in the calculator's advanced settings.

What does the extra pension accumulation switch change?

It is additional saving into a second-pillar pension fund: a further 3% of gross is deducted, so the total Sodra share becomes 15.52% instead of 12.52%.

You take home less as a result, but this is not a tax — it goes into your own pension account.

How does a fixed-term contract change the calculation?

Fixed-term contracts carry a higher employer unemployment insurance rate. Your take-home pay does not change — only what the job costs the employer does.

Accuracy

Why does my payslip show a different amount?

The usual reasons: you did not work the full month, sick pay or holiday pay was involved, bonuses were added, a different tax-free allowance applies, or you work several jobs or less than full time.

The calculator assumes a full month under a single contract, so the simpler your situation, the closer it lands to your payslip.

Which year's tax rules are used?

The rules in force in Lithuania for 2026. The figures quoted on this page come from the same source as the calculator itself, so the two cannot drift apart.

Is this an official source?

No. It is an independent informational tool. The official sources are VMI and Sodra, and your actual pay is determined by the payslip your employer issues.

Data and privacy

Where does the salary statistics data come from?

From Sodra's open data, published on data.gov.lt (the insured persons' income analysis). It covers every insured person, including those who worked only part of a month, so the averages sit somewhat below a full-time salary.

The exact period the data covers is always stated on the statistics page.

Is the salary I enter stored anywhere?

No. Every calculation happens in your browser, and the amounts you enter are never transmitted or saved. The site uses no cookies. We collect only anonymous visit statistics that cannot be linked back to you.