State social insurance contributions and health insurance contributions

Two kinds of social security taxes are provided by legislation: social security contributions and mandatory health insurance contributions.

State social insurance contributions are paid by:

  • All public and private legal entities entitled to calculate, deduct and pay to the budget of the State Social Insurance Fund state social insurance contributions for insured persons, for example employees, persons receiving authorship fee, sportsmen, etc.
  • Individuals who must pay individual state social insurance contributions – sole proprietorships, lawyers, legal assistants, notaries, members of a general partnership, members of a limited partnership, farmers and adult members of their household working on the farm, persons performing individual activities.

Health insurance is available to the following groups:

  • Persons insured by the state (retired persons, students, unemployed persons, etc.)
  • Persons paying contributions themselves or where a third party is paying contributions, for example work remuneration, authorship fee, individual activity income, etc.

Tax liabilities applicable to different income types are:

 

Income

Tax burden

Health insurance contributions

Social security contributions

Work remuneration Employee

6%

3%

Employer (the most common)

3%

31.18%*

Authorship fee (in employment) Insured person

6%

3%

Assurer

3%

30.48%

Authorship fee (not in employment)** Insured person(50% on the amount) 

Insurer

(50% on the amount)

6%

 

3%

3%

 

28.90%

 

 

 

Social insurance for the periods of work in foreign countries is regulated by the agreements made with respective countries. The social security of the persons moving among the member states within the European Union is regulated by the Regulation 883/2004. The provisions of this Regulation are applicable to the states of the European Union, as well as the European Economic Area (EEA) and Switzerland. As a general rule, the applicable legislation is that of the country where the activity is carried out. In the case of posting, social security tax may be paid pursuant to the legislation of the employer’s country of location entered in the register and it is also possible to be subject to the security scheme of the country. The prerequisite for this is certificate A1 of the social security board of the country where the employer is registered.

Lithuania has signed bilateral agreements concerning social insurance with Belarus, Ukraine, Russia, Canada and the United States of America.