Student pay, tax (GPM) & Sodra: your real take-home
This guide is general information, not legal advice. Rules and fees change — confirm anything important with the official source linked below and your university's international office.
When you take a student job in Lithuania, your gross salary (the headline number on the contract) is not what lands in your account. Two deductions come off it: income tax (GPM) and social insurance (Sodra). What is left — after the NPD tax-free slice is applied — is your net take-home pay.
This guide shows how gross becomes net, with a worked example. There is no special student exemption: a student job is taxed like any other.
Confirm every rate on the official source
The numbers below are as of 2026 and are based on the January 2026 tax changes. Rates, the minimum wage and the NPD formula are revised regularly. Before you rely on a figure, check the official VMI and Sodra sites and run your real salary through their calculators. This is your money and your residence permit — do not budget on an estimate alone.
The three things that change your pay
| Component | Who it goes to | Rate (as of 2026) | Effect |
|---|---|---|---|
| GPM (income tax) | VMI (tax office) | 20% of taxable income | Reduces take-home |
| Employee Sodra | Sodra (social insurance) | ~19.5% of gross | Reduces take-home |
| NPD (non-taxable amount) | — | up to €747/month | Increases take-home |
GPM — income tax
Employment income is taxed at 20% (as of 2026). Lithuania introduced higher 25% and 32% bands from January 2026, but those only apply to income above roughly 36 average wages a year (~€83,000) — far above any student job. So in practice your student wage is taxed at 20%. Crucially, GPM is charged on your pay after the NPD is subtracted, not on the full gross.
Sodra — social insurance
About 19.5% of your gross is withheld as the employee's Sodra contribution. As of 2026 this splits into roughly:
- VSD (social insurance): ~12.52% — pension, sickness, maternity, unemployment.
- PSD (health insurance): ~6.98% — your public health cover.
If you opt into extra pension accumulation you may pay an additional ~3%. Your employer also pays a separate contribution (~1.77%) on top of your gross — that does not come out of your pay.
Sodra keeps your health cover live
Because PSD (the health part of Sodra) is paid while you are legally employed, a registered job brings you into the state health system — important for non-EU students who otherwise need private cover. Watch for gaps between contracts: if PSD stops being paid, your public cover can lapse, which also matters for your residence permit. See our health-insurance guide for how to bridge gaps.
NPD — the tax-free amount
The NPD (neapmokestinamasis pajamų dydis) is a portion of monthly pay that is exempt from GPM. As of 2026:
- Up to €747/month if your pay is at or below the minimum wage (€1,153unverified).
- Above that, the NPD shrinks by a formula: roughly NPD = €747 − 0.49 × (monthly pay − €1,153), phasing out around €2,677/month.
The NPD helps lower, student-sized salaries the most. It only applies if you ask your employer to apply it (you normally do this once when you start) — and only at one employer at a time.
Worked example: a €1,200/month student job
Here is how a gross salary of €1,200/month becomes net pay. Figures are rounded and illustrative — as of 2026, confirm on VMI/Sodra.
| Step | Calculation | Amount |
|---|---|---|
| Gross salary | — | €1,200.00 |
| Employee Sodra (~19.5%) | 1,200 × 0.195 | −€234.00 |
| NPD for this pay | 747 − 0.49 × (1,200 − 1,153) | €723.97 |
| Taxable income for GPM | 1,200 − 723.97 | €476.03 |
| GPM (income tax, 20%) | 476.03 × 0.20 | −€95.21 |
| Net take-home | 1,200 − 234.00 − 95.21 | ≈ €870.79 |
So on €1,200 gross, you keep roughly €871 — about 73%. On the full minimum wage (€1,153unverified) the share kept is a little higher because the NPD is larger relative to pay; on higher salaries it falls as the NPD shrinks.
Without the NPD applied, you take home less
If your employer does not apply the NPD (for example because you also use it at another job), GPM is charged on the whole post-Sodra amount. On €1,200 that would be 20% of €966 ≈ €193 GPM, leaving ~€773 instead of ~€871 — about €98/month less. If you think NPD was missed, you can reclaim it via the annual return.
The VMI annual return
Most students with a single Lithuanian employer who withholds correctly do not need to do anything — tax and Sodra are handled at source. But it is worth checking:
- VMI prepares a pre-filled annual return in its e-system (Mano VMI / EDS) each spring.
- The deadline to file (or confirm) is typically 1 May for the previous calendar year.
- You may be owed a refund — common if the NPD was not fully applied during the year, or if you changed jobs.
- If you had more than one income source, freelanced, or earned abroad, filing is more likely to be required.
Free, official help in English
The Migration Information Centre ("I Choose Lithuania") explains taxes and the annual return for free, in English — see micenter.lt/en/taxes or the toll-free line 0 800 22922. For binding answers, VMI is the authority. Beware of paid agents charging high fees for routine filings you can usually do yourself.
Quick checklist
- Your gross is not your net — budget on take-home (~65–75% of gross for student wages).
- GPM 20% + Sodra ~19.5%, minus the NPD tax-free amount — as of 2026, confirm on VMI/Sodra.
- Apply the NPD at your main employer to pay less GPM.
- Keep PSD (health) contributions continuous — gaps can hit your cover and your TRP.
- Check your pre-filled VMI return each spring; you may be due a refund.
Frequently asked
How much of my gross salary do I actually take home?+
On a typical student wage, expect to keep roughly 65–75% of your gross pay after income tax (GPM) and Sodra. The exact figure depends on whether your employer applies the NPD tax-free amount. Use the official Sodra or VMI calculator with your real numbers.
What is the income tax (GPM) rate on a student job?+
20% of taxable employment income, as of 2026. The higher 25% and 32% bands only start well above €80,000 a year, so a student salary is taxed at 20%. Confirm current rates on VMI.
What is the NPD and does it help students?+
The NPD (non-taxable amount) is a slice of your monthly pay that is exempt from GPM. As of 2026 it is up to €747/month for someone on the minimum wage, shrinking as pay rises. It lowers your tax most on lower, student-sized salaries — but only if your employer applies it.
Do I have to file a tax return?+
If you only have one Lithuanian employer who withholds correctly, usually no — but it is safest to check your pre-filled return on VMI's e-system each spring (filed by 1 May for the previous year). You may be owed a refund if NPD was not fully applied.
Are these the final, official rates?+
Treat every figure here as 'as of 2026, confirm on VMI/Sodra'. Rates, the MMA and the NPD formula reset and are revised — always verify your own numbers on the official Sodra/VMI calculators before relying on them.