• If you want to employ a worker, you must submit a 1-SD notice of the beginning of state social insurance to “Sodra”, notifying it of a newly recruited employee no later than the day before the employee starts work. The notification must be submitted no later than one business day before the employee starts working (the form must be submitted online).
  • This notice informs “Sodra” about the employment contract concluded and the start of your new employee's social insurance in your company.
  • When submitting a notice, your company will incur an obligation to pay the state social and compulsory health insurance (VSD and PSD) contributions for its newly recruited employee.

 

  An employed person is compulsorily insured by all types of state social insurance (pensions, sickness, maternity, unemployment, accidents at work and occupational diseases) as well as by compulsory health insurance.

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When you employ a person or multiple persons, you must submit SAM notifications to “Sodra” on a monthly basis, before the 15th day of the month. You should provide “Sodra” with a notice on salaries and state social insurance contributions calculated for employees every month. The notice for the current month is due by the 15th day of the next month.

With this notification, you are informing “Sodra” about your employees' monthly salaries and calculated state social insurance contributions for each month.

The policyholder has to sign all of his provided notifications (messages) in the Personal “Sodra” account with a qualified electronic signature.

  The SAM notification for the current month is due by the 15th day of the next month.

For example, you must submit a SAM notification by 15 February 2022 for the month of January 2022.

If the 15th day of the month is a rest day or a holiday, the notification may be submitted by the end of the next business day.

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Employing a person

When providing data regarding the employment of a person according to an employment contract, the policyholder will have to specify the type of the employment contract according to a classification (1-SD notification regarding the start of state social insurance, fields A7, A8, A40 and A41):

01 – permanent employment contract;

02 - fixed-term employment contract;

03 - temporary employment contract:

031 - temporary employment contract;

032 - temporary employment contract of indefinite duration;

04 - apprenticeship contract;

05 - project work contract;

06 – workplace sharing employment contract:

061 - fixed-term workplace sharing employment contract;

062 - workplace sharing employment contract of indefinite duration;

07 - employment contract with several employers:

071 - fixed-term employment contract with several employers;

072 - employment contract with several employers of indefinite duration;

08 – Fixed-term seasonal employment contract:

081 - fixed-term seasonal employment contract;

082 - seasonal employment contract of indefinite duration.

 

This information is necessary to provide in view of the division of unemployment social security contributions for employees:

  • employed according to employment contracts applied rate is 1.31 percent;
  • employed according to fixed-term employment contracts applied rate is 2.03 percent.

 

Providing data on the insured person’s work for several employers

If an employment contract is concluded with an insured person, which includes working for several employers, the first employer who will execute all of the employer’s functions, related to the planning of the working schedule, state social contribution calculation for this employee and provision of information regarding such an employee - must submit information to “Sodra”. This employer will have to pay all state social insurance contributions.

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In the event that the insured's salary is lower than the approved minimum monthly salary, the employer must calculate and pay not only the policyholder's but also the insured's social security contributions from at least the minimum monthly salary in order to reach the contribution "floor".

Exceptions to the lower limit of social insurance contributions apply, if in each month:

  1. The employee is already working for another employer or is insured by social pensions insurance from state funds (the employee brings up a child up to three years old, cares for an incapacitated person at home, serves in the army under the mandatory call program, is a priest and a monk, as well as is an artist of working age (part 2, 3, 4, 6, 7 of article 6 of the Law on SSI).
  2. The employee receives an old-age or disability pension, a disability or an old-age benefit, related to social insurance from another EU member state, from the EEA country, from the Swiss Confederation or from the country, Lithuania concluded an international agreement on the implementation of social protection with.
  3. The person is younger than 24 years old (applies up to a calendar month, the person turns 24 years old in).
  4. The incapacity rate of a person is 0-55%.
  5. The person received maternity, paternity or child care benefits.

For example, if the calculated salary of your employee is 100 euros per month, you, as the employer, will have to pay contributions not from this sum of money, but from 730 euros. In this case, payments to the insurer (the employer) and the insured person (the employee) from 630 euros must be paid at the expense of the insurer; payments from 100 euros are made in the usual manner (at the expense of the insurer and the insured person).

From the amount, which is not less than MMW, the insurer must pay not only a part of the insurer's payments; of the amount, which is not less than MMW, it is also necessary to make payments of the insured person (in this case, at the insurer's expense, only from the difference between the MMW and the actual calculated salary).

This “ceiling” of SSI contributions is the salary limit, payments to “Sodra” will not be counted from. In 2022, it is applied to the income, exceeding 60 average wages (EUR 90 246) per year. 

The “ceiling” of payments does not apply to CHI contributions.

 

From 2021, when working with several employers, the contributions paid by insured persons of the SSI is calculated jointly (in 2020, the SSI contributions were calculated according to each insurer separately).

For example, if the SSI contributions are paid from 60 average wages (1st workplace) and from 50 average wages (2nd workplace), these contributions are summed up and the ceilings of SSI contributions are reached. The overpayment is refunded to the insured person.

“Sodra” receives a monthly notice with employee salaries and state social insurance contributions. The notice for the current month is provided until the 15th day of the next month.

“Sodra” may also receive a 2-SD notice (on the termination of state social insurance) with the information about the fired employee. The notice should be submitted no later than the next business day after termination of the employment contract with an employee. “Sodra” must receive the contributions, specified in the notice.

Calculated contributions for the current month must be paid to the  “Sodra” account before the 15th day of the next month.

For example, if you provide a notice for May 2022 on June 14, 2022, you will need to pay “Sodra” by June 15, 2022.

In the event that the state social security contributions cap was reached:

  • The employer would be informed about that through the personal "Sodra" account of the insurer. After the insurer has submitted the social insurance notifications 1-SD, 2-SD, 13-SD, SAM, or has revised the data of the above notifications – in the event that the insured income of the insured person has reached its cap, the SSS contributions would be recalculated automatically in that month. In this case, all insurers / employers of the insured person, who should calculate contributions in that month, would be informed of a change in the insured person's contribution rate. 
  • The employer/insured person would be informed through the personal "Sodra" account of the resident. The notification would contain information about refundable contributions paid during the calendar year which were higher than the due contributions. The overpayment would be refunded by 31 May of the following year to the personal account of the employee to which "Sodra" has last paid the benefit granted to the person. 

The payment rate also depends on the group of social insurance benefit on accidents with insurers and occupational diseases your company belongs to. There are 4 groups of insurers. They are related to the number of accidents at work and occupational diseases. As a rule, a company is assigned to group I, the rate of social insurance benefits on accidents at work and occupational diseases, equal to 0.14%, applies in.

Rates of social security contributions for accidents and occupational diseases from 01/01/2022:

Policyholders are assigned and approved to these groups every year by the State Social Insurance Fund Board (Order (in Lithuanian) No V-653 of 23 December 2021 of the Director of the State Social Insurance Fund Board under the Ministry of Social Security and Labour, Order (in Lithuanian) No V-28  of 27 January 2022, Order (in Lithuanian) No V-41 of 3 February 2022, Order (in Lithuanian) No V-81 of 14 March 2022, Order (in Lithuanian) No V-113 of 28 March 2022) in compliance with Article 29(3) of the Law of the Republic of Lithuania on the Social Insurance of Accidents at Work and Occupational Diseases.

  The insurers, which start working in 2022 and are not in the II-IV groups of insurers, are assigned to group I. They are subject to the rate of social insurance benefits on accidents at work and occupational diseases, equal to 0,14%.

You can find out what rate applies to you by logging into the “Sodra” personal account for insurers, clicking on “Suvestinės” and generating a report - “Aktuali informacija draudėjams”.

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You must transfer the contributions to one of the “Sodra” payment collection accounts.

 

The payment information must contain the payment code:

  1. When you pay for your employees, the payment code is - 252.
  2. If you pay interest for late payments, the deposit code will be - 253.
  3. If you pay penalties for unlawfully reduced contributions, the code is - 254.
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The contributions paid to “Sodra” are intended to insure your employee with various types of social insurance. In this case, when your employees work under an employment contract, they are compulsorily insured with all types of social insurance (pensions, sickness and maternity, unemployment, occupational accidents and occupational diseases) and compulsory health insurance.

 

The contributions paid by you according to the rates approved by law are allocated to the respective types of social insurance. These rates are:

  • Unemployment social insurance - 1.31%. or 2.03%, if the employee is employed according to a fixed-term contract.

 

Your company also belongs to a group of policyholder’s social insurance contribution rates for accidents and occupational diseases. There are 4 of them in total, and different rates of social insurance for accidents and occupational diseases apply to each.

Rates applicable in 2022:

  • Group I - 0.14%.
  • Group II - 0.47%.
  • Group III - 0.7%.
  • Group IV - 1.4%.

 

Policyholders are allocated to these groups on an annual basis by the “Sodra” council, following the Law on the Budget Indicators of the State Social Insurance Fund of the Republic of Lithuania for that year and methodology approved by the Government of the Republic of Lithuania. If you are not on the list of policyholders in Groups II-IV, you are assigned to the I group of policyholders.

 

  The policyholders who started their business in 2022 are assigned to the I group of policyholders and are subject to 0.14% rate of social insurance contributions.

 

Guarantee fund contributions:

  • 0,16 percent from the person’s estimated salary.

  Guarantee Fund contributions for insured persons are not paid by the Bank of Lithuania, budget institutions, political parties, trade unions, religious communities and partnerships, as insured persons of these policyholders are not provided with the benefits of this fund.

 

Contributions to the long-term work benefit fund:

  • 0,16% from the person's estimated salary, which is not smaller than the minimum monthly salary.

  The Bank of Lithuania and the budgetary institutions do not pay contributions to the long-term work benefit fund for insured persons.

From the person's estimated salary have to be deducted these contributions:

  • Pension social insurance - 8,72%.
  • Illness - 1,99%.
  • Maternity - 1,81%.

 

If an employee participates in the pension accumulation, payments for a cumulative pension from the accrued salary, equal to 2,7% or 3%, are calculated.

 

You can find out the exact contribution rate applied to you in your personal “Sodra” account by clicking on "Summaries" and creating a summary of "Relevant information for policyholders".

  Health insurance is performed in accordance with the Law on Health Insurance of the Republic of Lithuania, according to which the employee pays 6,98% health insurance contribution.

  Important! All required contributions to “Sodra” are calculated, deducted and paid by the employer. Social insurance reports indicate which part of the tariff is paid by the employer, and which is paid by the insured person.

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Preferences are not applicable for these types of contributions.

If you cannot pay contributions on time, you can postpone them. To do this, you must:

  1. Provide an application to the “Sodra” department (the recovery of insurance contribution debt is stopped at the day you provide the request with all needed documents).
  2. A “Sodra” department will examine your application in 20 business days and will send you a notification with its decision. If postponing of the payment has been approved, you need to come to the “Sodra” department during a 10 business day period and conclude a debt payment postponement agreement.

 

  If you are subject to EU state aid, applied according to the provisions of the Treaty of European Union (one of the circumstances is a debt of more than 200.000 Euro), you must prepare a report and a business plan (restructuring plan) for the European Commission. Your application, in this case, is reviewed within 40 business days and a notice of decision is sent to you.

  In case your contribution debt payment is postponed, but you fail to execute the conditions of the agreement or fail to pay current payments, the agreement is terminated, the remaining debt is recovered and due interest is calculated.

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Yesif:

  • Your arrears of the social insurance contributions are not less than EUR 125 and do not exceed EUR 1,500;
  • You submit an Application for the deferral of contributions (contributions, interest, fines) (in Lithuanian) to “Sodra”.

No, if recovery of arrears of the social insurance contributions has already been delegated to the bailiff.

 

CONDITIONS OF DEFERRAL

Amount of arrears, EUR

Term of deferral, months

Less or equal to 600

Up to 4

Greater than 600 but equal to or less than 900

Up to 6

Greater than 900 but equal to or less than 1,200

Up to 8

Greater than 1,200 but equal to or less than 1,500

Up to 12

 

TERMS:

  • Individuals may apply to “Sodra” division for the deferral of the contributions immediately after the date by which the annual income tax return must be submitted to the STI, i.e. after May 1.
  • Payment of arrears of the social insurance contributions can be deferred once per calendar year.
  • If your arears do not exceed EUR 1,500, “Sodra“ shall adopt the decision within 10 working days from the date of receipt of the application at “Sodra“ division.
  • “Sodra“ division shall notify the insurant on the decision adopted within 5 working days from the date of the decision, submitting the decision to the personal account of "Sodra" for the resident and the policyholder.
  • The repayment of arrears of the social insurance contributions begins from the date of the decision to defer the payment of arrears of the social insurance contributions subject to the terms and conditions set out therein.
  • If you are subject to EU state aid rules (one of the circumstances is a debt of more than € 200,000), you must prepare a notification and a business plan (restructuring plan) for the European Commission. Your application will then be processed within 40 working days and a decision notice will be sent to you.

An Application for the deferral of contributions (contributions, interest, fines) may be submitted:

  • Online through your personal "Sodra" account for policyholder by selecting Forms and templates (blanks)  →  Applications/complaints/additional information → Create a new one → DPP, 02 Request and adding a completed Application for the deferral of contributions (contributions, interest, fines) (in Lithuanian)

or

  • through your personal "Sodra" account for resident by selecting a free-form application and adding a completed Application for the deferral of contributions (contributions, interest, fines) (in Lithuanian). You must select the "Sodra" department where you are registered as a policyholder as the contact;
  • By e-mail [email protected] (it is necessary to attach a completed and signed Application for the deferral of contributions (contributions, interest, fines) (in Lithuanian));
  • By mail. The completed and signed original application is sent to the branch of "Sodra" where you are a registered as a policyholder;
  • Upon arrival at the "Sodra" branch. You need to have an identity document with you, e.g. passport, identity card.

Important! If payment of the contributions debt has been deferred for you, but you fail to fulfil the terms of the agreement or fail to pay the current contributions, the agreement shall be terminated and the remaining debt and accrued interest on late payment are recovered. 

 

 Important due to extreme situation and quarantine period!

  • Self-employed persons may not pay compulsory health insurance (CHI) contributions during an emergency and quarantine period and defer their payment for 2 years.
  • These persons who have not paid CHI contributions during an emergency declared by the Government and during quarantine will be required to pay these contributions for the said period within 2 years from the day of the emergency and quarantine cancellation.
  • If self-employed persons fail to pay CHI contributions within the set time limit when they have been provided with personal health care services within the set time limit, they will be required to compensate for the damage caused to the budget of the CHI Fund.

Policyholders wishing to benefit from the deferral of the payment of their contributions for insured persons/employees may apply to "Sodra". The payment of contributions owed to the "Sodra" may be deferred if the insurer's financial liabilities are less than his assets.

The policyholder must submit a reasoned request to the "Sodra" specifying the reasons for the indebtedness, future activities to improve the policyholder's financial position and debt repayment schedule, as well as the financial statement of the last reporting period. The application for postponement can be made online via a personal "Sodra" account for the policyholder by selecting Forms and templates (blanks) → Applications/complaints/additional information → Create a new one → DPP, 02 Request. You must select the "Sodra" department where you are registered as a policyholder as the contact.

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  • If you are planning to employ a foreigner who will arrive in the Republic of Lithuania and work under an employment contract with any type of visa, you must know that he will not be covered by compulsory health insurance.
  • The employer will be required to deduct and pay social insurance contributions for pensions, sickness, maternity social insurance, unemployment, accidents at work and occupational diseases from the salary calculated from him.
  • The employee must to pay the contribution to the guarantee fund. Guarantee fund contributions do not pay by the Bank of Lithuania, budgetary institutions, political parties, trade unions, religious communities and partnerships.
  • The employer must submit a 1-SD notice (announcement of the beginning of state social insurance) informing Sodra about the newly recruited employee about foreigners who come to Lithuania to work under employment contracts with visas of any kind. Notification must be made no later than one working day before the scheduled start of work.
  • Depending on which group of policyholder’s social insurance contribution rates for accidents and occupational diseases your company belongs to, the contribution rate for an employed foreigner is:

From 01-01-2021:

  • Group I - 0.14%.
  • Group II - 0.47%.
  • Group III - 0.7%.
  • Group IV - 1.4%.

 

  The policyholders who started their business in 2021 and later are assigned to the I group of policyholders and are subject to 0,14% rate of social insurance contributions.

Policyholders are allocated to these groups on an annual basis by the “Sodra” council, following the Law on the Budget Indicators of the State Social Insurance Fund of the Republic of Lithuania for that year and methodology approved by the Order of the Minister of Social Security and Labour of the Republic of Lithuania. If you are not on the list of policyholders in Groups II-IV, you are assigned to the I group of policyholders.

 

  You can find out the exact contribution rate applied to you in your personal “Sodra” account by clicking on "Summaries" and creating a summary of "Relevant information for policyholders".

  Other notification requisites are filled out according to general order in the same way, as they are filled for other persons working under an employment contract.

 

Payment codes:

  1. When you pay for your employees who arrived from abroad and have a visa, the payment code is - 349.
  2. If you pay interest for late payments, the deposit code will be - 350.
  3. If you pay penalties for unlawfully reduced contributions, the code is - 351.
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Update date: 2022-03-29
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