How to Use the Lithuania Salary Calculator

A Lithuania Salary Calculator is an online tool designed to help employees and employers estimate net salary after income tax (GPM), social security contributions (Sodra), and non-taxable income deductions (NPD).

Why Use a Salary Calculator in Lithuania?

Understanding your take-home pay in Lithuania can be tricky due to the multiple deductions applied to your gross salary. These include:

• Income tax (GPM) is at 20% for most employees.
• Social contributions (Sodra) are at different rates depending on your employment type.
• Non-taxable income (NPD) deductions that reduce your taxable base, with higher deductions for dependents.

This calculator simplifies the process by showing you exactly how much you’ll take home after deductions.

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How to Use the Calculator

1. Enter your gross salary (€):
   This is the total amount your employer pays before taxes and deductions.
2. Enter the number of dependents:
   Each dependent adds an allowance, reducing taxable income.
3. Select your social contribution rate:
   • 19.5% → Standard employment contracts.
   • 12.52% → For certain reduced categories (e.g., authors, small business contracts).
4. Click “Calculate Net Salary”:
   The calculator will instantly show you:
   • Your income tax (GPM).
   • Your social security contributions (Sodra).
   • Your non-taxable income allowance (NPD).
   • Your final net salary (take-home pay).

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Example Calculation

• Gross Salary: €2000
• Dependents: 1
• Social Security Rate: 19.5%

Calculation breakdown:

• NPD: ~€583 (adjusted for income level and dependent)
• Taxable Income: €1417
• Income Tax (20%): ~€283
• Social Security (19.5%): €390
• Net Salary: ~€1327

This means if you earn €2000 gross, you’ll take home around €1327 after taxes and contributions.

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FAQ – Lithuania Salary Calculator

Q1: What is the difference between gross and net salary?
A: Gross salary is the amount agreed with your employer before deductions. Net salary is what you actually receive in your bank account after taxes and contributions.

Q2: What is NPD (Non-Taxable Income Deduction)?
A: NPD is an allowance that reduces your taxable income. It varies depending on your salary and family situation (dependents).

Q3: How is income tax (GPM) calculated in Lithuania?
A: Standard GPM is 20%. For higher incomes (above €60,000/year), an additional 32% bracket may apply, but this calculator focuses on the standard rate.

Q4: What are social contributions (Sodra)?
A: These are payments made to the Lithuanian social security fund to cover pensions, healthcare, and other benefits. The standard employee contribution is 19.5%, with a reduced rate of 12.52% for some contracts.

Q5: Can this calculator be used by freelancers or self-employed people?
A: The current version is tailored for employees. Freelancers and self-employed individuals may have different contribution rates and tax rules.

Q6: Is this calculator 100% accurate?
A: It provides a close estimate based on standard rates and simplified formulas. Actual amounts may vary depending on your exact situation, additional deductions, or government updates.

Q7: Why is my NPD smaller when my salary is higher?
A: The NPD decreases as your gross salary increases. Once your salary is high enough, your NPD may even be reduced to zero.