How much tax is paid on the €1,153 minimum wage?

In 2026 about €144.36 VSD, €80.48 PSD and €81.20 GPM are withheld from €1,153 gross, leaving roughly €846.96 net. That is about 26.5% of gross in total.

Is income tax progressive in 2026?

Yes. From 2026 there are three bands: 20% up to 36 VDU per year (€83,237), 25% between 36 and 60 VDU, and 32% above 60 VDU. Most employees pay only the 20% rate.

Is the NPD applied automatically?

Not always. Your main employer applies it, but you must submit a request first. If you have several jobs, it can be used in only one of them.

Will these rates stay the same next year?

Not necessarily. The minimum wage, VDU, NPD and rates are set every year, so always check vmi.lt and sodra.lt. This article reflects 2026 data.

Gross vs Net Salary in Lithuania 2026: How to Calculate

Your employment contract states one amount (gross), but a different one lands in your bank account (net). The gap is made up of personal income tax and social and health insurance contributions, reduced by the non-taxable income allowance (NPD). This guide gives the 2026 rates and fully worked examples. Tax parameters change every year, so check vmi.lt and sodra.lt before making important decisions.

Gross, net and employer cost

Gross salary is the amount on paper before taxes. Net salary is what you actually receive. There is also a third figure: the employer's total cost, which is gross pay plus the contributions the employer pays on top.

Since 2019 almost all Sodra contributions are calculated on, and paid out of, the employee's pay, so the gross figure already includes them. The employer pays only a small extra amount (roughly 1.5 to 2.7 percent of gross, depending on the risk group).

2026 rates and parameters

The table lists the main 2026 figures for an employee on a standard employment contract, based on data published by the tax authority (VMI) and Sodra.

Item	2026 value
Minimum monthly wage (MMA)	€1,153
VSD (pension and social) contribution, employee	12.52%
PSD (health) contribution, employee	6.98%
Income tax (GPM) up to 36 VDU per year (€83,237)	20%
GPM between 36 and 60 VDU (up to €138,729)	25%
GPM above 60 VDU	32%
Maximum NPD	€747 per month
VDU (national average wage)	€2,312.15

How the NPD works

The NPD is the part of your income on which no income tax is charged. In 2026, if monthly income does not exceed the minimum wage (€1,153), the NPD is €747. For higher earnings it shrinks by the formula 747 − 0.49 × (income − 1,153), and reaches zero at about €2,677.49 per month.

The NPD can be applied only at your main workplace and only after you submit a request. If you work in several places, you can use it in just one.

Step by step: €2,000 gross

Take a gross salary of €2,000. First calculate the insurance contributions, then the NPD and income tax. The taxable base is gross minus NPD (contributions are not deducted before income tax).

VSD: 2,000 × 12.52% = €250.40
PSD: 2,000 × 6.98% = €139.60
NPD: 747 − 0.49 × (2,000 − 1,153) = €331.97
GPM: (2,000 − 331.97) × 20% = €333.61
Net: 2,000 − 250.40 − 139.60 − 333.61 = €1,276.39

Comparison: how net changes as gross grows

Because the NPD shrinks as pay rises, the tax burden grows faster than salary. The table shows what remains of three different gross amounts.

Gross	NPD	VSD + PSD	GPM	Net	Total deductions
€1,153 (MMA)	€747.00	€224.84	€81.20	€846.96	26.5%
€2,000	€331.97	€390.00	€333.61	€1,276.39	36.2%
€3,000	€0	€585.00	€600.00	€1,815.00	39.5%

From net to gross: what the contract must say

Often you know the take-home pay you want and need the gross figure. There is no simple closed formula because the NPD depends on gross, so it is solved by iteration. For example, to take home €1,500 you need about €2,441 gross (NPD around €115.87, GPM around €465.03).

Between €1,153 and about €2,677 gross, each extra gross euro adds only about 51 cents of net, because the NPD falls at the same time. A raise is still worth having, but it feels smaller than the headline number.

Employer cost and what the example leaves out

The employer pays roughly 1.77% on top (guarantee fund, long-term benefits fund, unemployment and accident contributions; the exact rate depends on the risk group). A €2,000 gross salary therefore costs the employer about €2,035.

These calculations suit a standard employment contract. Self-employment, small partnerships (MB), extra NPD (for example for disability) and the annual VSD ceiling (60 VDU) can change the result. For a quick calculation use our salary calculator.