Lithuanian employers quote gross salaries. If you've been offered €900 a month or €8 an hour, that isn't what reaches your account. Enter what you've been offered and see the real figure.
Your student pay
Why students often pay little or no income tax
Lithuania has a tax-free allowance called NPD (neapmokestinamasis pajamų dydis). At low earnings it's €747 a month, and it shrinks as your salary rises — reaching zero at €2,677.49. Since most student jobs pay well under that, a large slice of your income is untaxed. Below roughly €747 a month you pay no income tax at all — though Sodra contributions still apply from the first euro.
Where Your Money Goes
Two deductions come off a Lithuanian gross salary, and they behave differently.
Income tax (GPM) — 20%
- ✓ Only charged on income above your NPD
- ✓ NPD is €747/month at low earnings
- ✓ Often €0 for part-time student work
- ⚠ Rises to 25% and 32% at high incomes
Sodra — 19.5%
- ⚠ Charged on the full gross, no allowance
- ✓ Includes 6.98% health insurance (PSD)
- ✓ Pension 8.72%, sickness 1.99%, maternity 1.81%
- ✓ Buys you public healthcare access
Your employer also pays 1.77% on top of your gross — that's their cost, not a deduction from you.
The Sodra deduction buys something worth having
The 6.98% health portion of your Sodra contributions puts you into Lithuania's state health insurance system (PSD). For a non-EU student, that's significant — students who aren't working must buy private health insurance to satisfy their residence permit, typically €50–150 a year. Once you're employed and PSD-covered, you may be able to drop that policy. Check before cancelling. Student health insurance guide →
Before You Accept a Job
- Mind the 20-hour cap. Non-EU students can work up to 20 hours per week during term time, and it applies across all jobs combined — not per employer. You can work full time during your institution's official holidays, during a required internship, and for the first three months after graduating. Exceeding the cap risks your permit. Work rights guide →
- Check the figure is gross. It almost always is. Ask explicitly if the offer doesn't say.
- Get a written contract. Undeclared cash work puts your immigration status at risk, not just your tax position.
- Make sure your IBAN works. A Lithuanian IBAN from Revolut or Paysera is usually accepted by payroll — confirm before your first payday. Student accounts →
- Compare against tech roles. Vilnius fintech and IT companies hire students, pay considerably better than hospitality, and operate in English.
Need an IBAN your employer will accept?
Lithuanian IBAN with just a passport — no permit or personal code needed.
Worked Examples
Typical student earnings, using the same formulas as the calculator above.
| Monthly gross | NPD | Income tax | Sodra | Net pay | You keep |
|---|---|---|---|---|---|
| €300 | €747.00 | €0.00 | €58.50 | €241.50 | 80.5% |
| €500 | €747.00 | €0.00 | €97.50 | €402.50 | 80.5% |
| €800 | €747.00 | €10.60 | €156.00 | €633.40 | 79.2% |
| €1,153 (minimum wage) | €747.00 | €81.20 | €224.84 | €846.96 | 73.5% |
| €2,000 | €331.97 | €333.61 | €390.00 | €1,276.39 | 63.8% |
This calculator is for guidance only. Assumes no Pillar II pension contribution and standard NPD. Individual circumstances vary.
How the Calculation Works
For anyone who wants to check the arithmetic:
- Work out your NPD. If gross ≤ €1,153, NPD is €747. Above that:
NPD = {figures.npdMax} − {figures.npdRate} × (gross − {figures.mma}), floored at zero. - Taxable income = gross − NPD.
- Income tax = taxable income × 20%.
- Sodra = gross × 19.5% (or 22.5% with Pillar II).
- Net pay = gross − income tax − Sodra.
Worked example at €2,000: NPD = 747 − 0.49 × 847 = €331.97. Taxable = €1,668.03. Tax = €333.61. Sodra = €390.00. Net = €1,276.39.
MMA (€1,153), the NPD formula and Sodra component rates are verified for 2026. The higher GPM brackets (25% above €83,237, 32% above €138,729) sit well above any realistic student income and don't affect this calculator.
Frequently Asked Questions
Do students pay tax in Lithuania?
Yes, on the same basis as anyone else — there's no separate student tax status. But the NPD tax-free allowance means many part-time student jobs attract little or no income tax. Sodra contributions apply from the first euro regardless.
How much can I earn before paying income tax?
Roughly €747 a month, which is the full NPD at low earnings. Below that, your taxable income is nil. Sodra is still deducted.
Do I pay Sodra on a small student job?
Yes — Sodra applies to the full gross with no allowance. In return you're covered for state health insurance, which matters if you're a non-EU student currently paying for private cover.
How many hours can I work as a student?
EU students have no student-specific cap. Non-EU students have a term-time limit attached to their residence permit, applying across all jobs combined. Confirm your own limit with the Migration Department.
What is NPD?
Neapmokestinamasis pajamų dydis — the tax-free allowance. It's €747 a month at low earnings and tapers to zero at €2,677.49 gross.
Should I join the Pillar II pension as a student?
It adds 3% to your deductions in exchange for building a private pension pot. Most students opt out to maximise take-home pay and join later when earning more, but it's a personal decision — the calculator lets you model both.
Does working affect my health insurance?
Yes, usefully. Employment brings you into the state PSD system, which may let a non-EU student drop the private policy required for their permit. Confirm your coverage is active before cancelling anything.
Related
Disclaimer. This calculator provides general estimates using standard 2026 rates and assumes the standard NPD applies. Individual circumstances — additional allowances, multiple employers, non-standard contracts — can change the result. It is not tax advice. Confirm your position with VMI or your employer's payroll department.