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What does a salary cost the employer?

Employer contributions range from 1.77% to 3.75% of gross salary, depending on the contract and accident-insurance group. Enter a gross salary to compare total employer cost with employee take-home pay.

Employee salary

Enter a gross salary. Then choose the contract type and accident-insurance group.

Contract type

Most employers are in group I. Sodra sets each employer’s group from its workplace injury and occupational disease record and publishes the lists for groups II to IV. Check your group on sodra.lt

Employer cost breakdown

Enter a gross salary at or above the minimum monthly wage to see the full cost.

How employer cost is calculated

The employer pays these contributions in addition to gross salary, so they do not reduce employee take-home pay:

  • Unemployment social insurance: 1.31% (open-ended) / 2.03% (fixed-term)
  • Accident and occupational-disease insurance: I 0.14% / II 0.49% / III 0.70% / IV 1.40%
  • Guarantee fund: 0.16%
  • Long-term employment benefit fund: 0.16%

Employer contributions total 1.77% of gross salary for an open-ended contract and 2.49% for a fixed-term contract. Total employer cost = gross salary × (1 + rate).

The calculator starts with group I, which covers most employers. Sodra assigns higher-risk employers to groups II to IV, where the accident-insurance rate can be up to ten times higher.

Frequently asked questions

How much does an employee cost the employer in Lithuania in 2026?

The employer pays 1.77% on top of the gross salary for an open-ended contract at accident group I, and 2.49% for a fixed-term contract. Total employer cost = gross salary × (1 + rate).

How much does a €3,000 gross salary cost the employer?

€3,053.10 per month for an open-ended contract at accident group I: €3,000 gross plus €53.10 in employer contributions. The employee takes home €1,815.00 without 2nd or 3rd pillar pension contributions.

What does the employer pay on top of the gross salary?

Four contributions: unemployment insurance 1.31% (2.03% for fixed-term contracts), accident and occupational-disease insurance 0.14% at group I (up to 1.40% at group IV), the guarantee fund 0.16%, and the long-term employment benefit fund 0.16%.

Does a fixed-term contract cost the employer more?

Yes. Unemployment insurance rises from 1.31% to 2.03%. The other contributions stay the same.

Is there a ceiling on employer contributions?

Partly. Unemployment and accident insurance stop above 60 VDU (€138,729 per year in 2026). The guarantee fund and the long-term employment benefit fund apply to the full gross salary.

Do employer contributions reduce the employee’s net pay?

No. The employer pays them in addition to gross salary, so they do not reduce take-home pay. Income tax and the employee’s Sodra contributions are calculated separately in the salary calculator.

Results are estimates. Ask your employer or payroll specialist about your individual situation.