Your first Lithuanian payslip, explained

Your first payslip in Lithuania can be a surprise. The number at the bottom is much smaller than the number in your contract. That is normal. This guide explains where the difference goes, so you can check your pay is right.

Gross and net

Two words matter most.

Gross (bruto) is your salary before anything is taken off. Your contract usually shows the gross amount.

Net (neto) is what is paid into your bank account. Many job adverts in Lithuania show the net amount, so always check which one you are looking at. "€900 net" and "€900 gross" are very different jobs.

What is taken off

Two main deductions come off your gross pay. Your employer calculates them and pays them to the state for you.

Social insurance — 19.5%. This is paid to Sodra, the state social insurance fund. It covers your pension, sickness pay, maternity and paternity pay, unemployment benefit, and your health insurance. It is 19.5% of your gross pay. On a payslip it may appear as VSD (social insurance) and PSD (health insurance) separately.

Income tax (GPM) — usually 20%. Income tax is 20% for most workers. Higher rates of 25% and 32% apply only to much larger annual incomes, so they will not affect most jobs we recruit for.

But income tax is not charged on all of your pay. That is because of the next item.

The tax-free amount (NPD)

Part of your monthly pay is free of income tax. This is called the NPD (neapmokestinamasis pajamų dydis).

In 2026, if you earn the minimum wage, the first €747 of your monthly pay is tax-free. If you earn more, the tax-free part becomes smaller, and above a certain salary it disappears.

The NPD only reduces income tax. It does not change social insurance, which is always 19.5% of gross.

An example

In 2026 the minimum monthly wage in Lithuania is €1,153 gross. Here is how that becomes net pay:

	Amount
Gross pay	€1,153.00
Social insurance (19.5% of €1,153)	−€224.84
Tax-free amount (NPD)	€747.00
Income tax (20% of €1,153 − €747)	−€81.20
Net pay	€846.96

So at the minimum wage, about €847 reaches your bank account each month.

At a higher salary the tax-free amount is smaller. For example, at €1,400 gross the net pay is about €972.

Optional pension saving

You may also see a deduction of around 3% for a private pension (the "second pillar"). In Lithuania many workers are added to it automatically. You can choose to leave it. If you are not sure whether you are in it, ask your employer or check your account on the Sodra website.

Extra pay you should check

Lithuanian law sets minimum extra pay for some hours. Look for these on your payslip if you worked them:

• Overtime — paid at least 1.5 times your normal hourly rate.
• Night work — paid at least 1.5 times your normal hourly rate.
• Work on a rest day not in your schedule, or on a public holiday — paid at least double.

Your contract or collective agreement can give you more than this, but never less.

Common words on a payslip

Lithuanian	English
Priskaičiuota	Earned (gross)
Išskaičiuota	Deducted
Išmokėti	To be paid (net)
GPM	Income tax
VSD	Social insurance
PSD	Health insurance
Viršvalandžiai	Overtime
Atostoginiai	Holiday pay

If something looks wrong

Payslips can contain mistakes. If your hours, overtime or net pay look wrong:

1. Compare the payslip with your own record of the hours you worked. Keep a simple note of your shifts every week.
2. Ask your employer or payroll to explain the calculation. You have the right to know how your pay was worked out.
3. If it is still not resolved, you can contact the State Labour Inspectorate (VDI), which handles pay complaints.

Rates and the tax-free amount change from year to year. The figures here are for 2026. If you are applying for a job with us, the vacancy shows whether the salary is gross or net — and if it does not, ask us.