How to read your payslip: a guide to the Lithuanian wage slip

A Lithuanian payslip (darbo užmokesčio lapelis) is the document where your employer must show how your gross (priskaičiuotas) pay becomes your net (išmokėtinas) pay. In short: it starts with gross, then deducts personal income tax (GPM) and Sodra social contributions (VSD and PSD), after applying the tax-free allowance (NPD), and what remains at the bottom is what lands in your bank account. Below we walk through every line so you can check for yourself whether the slip is correct.

A payslip isn't bureaucratic paperwork — it's the only document that lets you verify you've been paid correctly. Roughly one in five employees never reads it to the end, and that's a missed opportunity.

What a payslip is and why your employer must provide it

A wage slip is the employer's statement of pay for a given month or period. Under the Lithuanian Labour Code, the employer must inform the employee in writing (on paper or electronically), at least once a month, of the amounts accrued, deducted and paid out, along with the hours worked. This isn't a favour — the employee has the right to receive the slip and, on request, a more detailed explanation.

Why bother reading it if the money arrives anyway? For several practical reasons:

• To check it's correct — mistakes happen, especially when the NPD allowance, bonuses or the number of working days change.
• To understand where the difference goes between gross and net — many people are surprised that roughly 40% "disappears" between the headline figure and their account.
• To prepare for negotiations or a loan — banks and employers quote sometimes gross, sometimes net.
• To see how much is being saved for your pension and health insurance — these are your social guarantees.

Gross pay (bruto): why it can differ from your contract

The first line is usually gross (bruto) pay — the figure all taxes are calculated from. You'd expect it to match the number in your employment contract, but in practice it often differs. Here's why:

• Bonuses and premiums — the variable part of pay, which in a given month can be higher or zero.
• Overtime, night work, work on rest days or holidays — paid at an increased rate (e.g. overtime at no less than 1.5x).
• A partial month — if you didn't work all days (holiday, sick leave, starting mid-month), gross is reduced proportionally.
• Holiday pay and sick pay — may appear on separate lines and are calculated from average earnings, not your monthly salary.

A practical tip: if your contract says, say, €2,000 gross but the slip shows a different number, first check whether you worked the full month and whether there were bonuses or deductions for absences. The explanation usually lies right there.

The deductions: GPM, VSD and PSD

Three main amounts are deducted from gross. These are the employee's taxes — already baked into the gap between gross and net.

GPM — personal income tax

In 2026 GPM on employment income is progressive: most employees pay the 20% rate, while higher annual income is taxed at 25% or 32% on the excess only (based on the average-wage thresholds set by VMI, the State Tax Inspectorate). GPM is calculated not on the full gross but on the taxable portion — gross minus NPD minus the VSD and PSD contributions. So once NPD is applied, the actual euro amount of GPM is lower than a flat 20% of gross would suggest.

VSD — state social insurance contribution

VSD (the Sodra pension and social-insurance share) is deducted from your pay. The standard employee VSD rate is about 12.52% of gross. If you participate in supplementary pension saving (pillar II), an extra saving percentage is added, shown as a separate line or rolled into VSD.

PSD — compulsory health insurance contribution

PSD funds your health insurance. The employee PSD rate is 6.98% of gross. It's PSD that entitles you to state-funded healthcare.

Together the employee's Sodra contributions (VSD + PSD) come to roughly 19.5% of gross. Always verify the exact, annually-adjusted rates on Sodra's contribution-rates page and on the VMI website — the figures here are indicative, 2026.

How NPD shows up on the slip, and what to do if it's missing

NPD (the tax-free allowance) is the portion of pay on which no GPM is charged. The larger the NPD, the smaller the taxable amount and the more you take home. The key things to know:

• NPD is tapered — the higher your gross, the smaller the NPD; above a certain level it disappears entirely.
• Those on the minimum wage get the largest NPD, so their effective tax burden is lower.
• People with a disability get increased, fixed NPD amounts.

On the slip, NPD usually appears as its own line or as "NPD applied" within the GPM calculation. If you don't see it, or GPM looks too high, the NPD may not be applied. The most common reason: the employee never gave the employer a request to apply NPD (or works for several employers, where NPD can only be applied in one place).

What to do? Submit a request to apply NPD to your employer (payroll). If NPD wasn't applied all year, the overpaid GPM can be recovered by filing your annual income return through the VMI e-declaration system — the overpayment is refunded once the annual NPD is recalculated.

Itemised deductions and the net amount

After taxes, the slip may show additional deductions — amounts the employer withholds on a lawful basis:

• Advance — if you received part of your pay mid-month, it's subtracted so you aren't paid twice.
• Bailiff recoveries — under enforcement orders (debts, alimony); the employer is obliged to execute them.
• Deductions with the employee's consent — e.g. trade-union dues or pillar III pension saving.
• Compensated amounts — e.g. for damaged property, if agreed under the procedure set by law.

The final line is net (išmokėtinas) pay — the amount that reaches your bank account after all taxes and deductions. A simple check: gross − GPM − VSD − PSD − deductions = net. If it doesn't add up, an error is hiding in one of the lines.

Worked example: a €2,000 gross payslip (indicative, 2026)

Take an employee working a full month for €2,000 gross, with NPD applied and no supplementary saving:

1. Gross: €2,000
2. VSD (12.52%): ≈ €250
3. PSD (6.98%): ≈ €140
4. NPD: roughly €200–250 (tapered, depends on gross)
5. Taxable portion for GPM: gross − Sodra − NPD ≈ €1,360–1,410
6. GPM (20%): ≈ €275–285
7. Net in hand: ≈ €1,290–1,320

So from €2,000 "on paper" the employee actually receives around €1,300, with Sodra and GPM making up the difference. The figures are rounded and indicative — calculate your exact result against the current NPD and rates using the salary calculator.

Common payslip mistakes and how to check them

The simplest way to check a payslip is to enter your gross into a calculator and compare the result with the slip. What to watch for:

• Missing or wrong NPD — the most common reason net is lower than it should be. Check whether you submitted a request.
• Too much or too little GPM — if GPM is charged on the full gross instead of the taxable portion, the figure is distorted.
• Missing bonuses or overtime — compare against the hours you actually worked and the bonuses agreed.
• Double deduction of an advance — happens when the advance is shown both as paid and as not yet deducted.
• Wrong number of working days — this distorts the whole gross proportionally.

The easiest way to spot all of this is to compare two numbers: what your slip shows and what an independent salary calculator computes. If they differ by more than a few euros (rounding), it's worth asking payroll. Another handy resource for everyday finance maths is our full set of free calculators.

What to do if you spot a discrepancy

If you find a possible error, don't jump to conclusions — first contact payroll or your employer calmly and specifically:

1. Name the exact line and month — "the GPM on the March slip looks too high" is clearer than "my pay is wrong".
2. Show your own calculation — present what you got with the calculator so the conversation stays factual.
3. Ask about NPD — whether it's applied and whether your request is valid.
4. If the error is confirmed — it's usually corrected on the next month's slip (a recalculation) or by refunding the overpayment.
5. If you can't agree — you can turn to the State Labour Inspectorate, and for GPM overpayments, declare your income via VMI and reclaim the overpaid tax.

Most cases are a simple misunderstanding about NPD or an uncounted bonus, resolved in a single conversation.

Want to check in a minute whether your payslip is right? Enter your gross into our free salary calculator — you'll see GPM, VSD, PSD, NPD and the net figure, and can compare against your slip. And if your business still runs payroll by hand and the slips keep raising questions, explore the rest of our free calculators. The figures in this article are indicative (2026) — always verify current rates on the VMI and Sodra websites.