system
If a Ukrainian citizen is granted unpaid leave due to military aggression of the Russian Federation in Ukraine, the employer must choose reason 05 when completing the 12-SD report (in Lithuanian) (“non-arrival with the authorisation of the administration”). If the 12-SD report is submitted in accordance with the above procedure, no PSD (compulsory health insurance) contributions will be calculated for the relevant period.
The employer must submit a 1-SD report (in Lithuanian) and a LDU report.
If the person who arrives has a temporary or permanent residence permit in Lithuania, then the 1-SD report must indicate the reason code 01 (“the person is recruited under an employment contract or concluded with him/her a written secret cooperation agreement on the basis of which remuneration is paid”).
If a person does not have a temporary or permanent residence permit in Lithuania, the 1-SD report must state the reason code 19 ("alien or a non-permanent resident of the Republic of Lithuania who are not obliged to pay compulsory health insurance contributions in accordance with the procedure laid down in legal acts (Cause code — 19) are admitted to work as an employed person).
It is important to: for each foreign national employed, an LDU report (in Lithuanian) must also be submitted.
More information about the LDU report can be found here
If this compensation is granted during an emergency situation in the Republic of Lithuania, such allowance shall not be taxed in the form of VSD (State social insurance) and PSD contributions. Unless an employer gives a pecuniary gift, the VSD and PSD contributions must be calculated and paid.
If a Ukrainian citizen has been granted a permanent residence permit in Lithuania, in order to receive all medical services, PSD contributions have to be paid. If a person has been granted a temporary residence permit in Lithuania but the person is not employed or self-employed, they cannot pay PSD contributions and in this case only the necessary health assistance can be granted.
More information on compulsory health insurance for persons coming from Ukraine can be found on the Health Insurance Fund page.
If you have been granted a temporary or permanent residence permit in Lithuania, you can find information about the payment of PSD contributions here.
Ukrainian nationals who are self-employed in Lithuania are not exempted from paying VSD contributions and therefore have to pay VSD contributions in the normal manner.
PSD contributions are to be paid by those self-employed Ukrainian nationals who have been granted temporary or permanent residence permits in Lithuania.
More information on the payment of social security contributions in self-employment can be found here.
When employing a foreigner for the first time, as well as a Ukrainian citizen who does not have a personal identification number in Lithuania, it is necessary to provide a social insurance number (SD number) in order to submit a social insurance report (1-SD report). For this purpose, the employer must provide the policyholder with a digital copy of his / her identity document in his / her personal "Sodra" account. If the Ukrainian citizen does not have a biometric passport or other valid travel document, a copy of the registration card issued by the Migration Department is sufficient to provide the SD number.
For foreigners with a personal identification number provided in Lithuania, the SD number is automatically assigned to the policyholder in the personal "Sodra" account by submitting a 1-SD report (in Lithuanian) on the commencement of state social insurance.
Ukrainians who are registered with the Migration Department may work on agricultural and forestry service vouchers. If the PSD contributions are not paid because the person does not have an issued residence permit in Lithuania, in which case the PKV notification shall not be submitted.
