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Generic Tax Name Social security contribution - Compulsory health insurance contribution (Employees)
Tax name in the national language Privalomojo sveikatos draudimo įmokos
Tax name in English Compulsory health insurance contribution
Member State LT-Lithuania
Tax in force since 1997/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Law on Health Insurance No. I-1343, adopted by the Parliament of the Republic of Lithuania in 1996/05/21, new edition established in 2002/12/03 adopted by the Parliament of the Republic of Lithuania, new wording came into force in 2003/01/01. Last law amendment came into force in 2015/01/01.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

Persons who are eligible for the compulsory health insurance:

1) citizens of the Republic of Lithuania and foreign nationals permanently residing in the Republic of Lithuania;

2) foreign nationals temporarily residing in the Republic of Lithuania, provided that they are legally employed in the Republic of Lithuania, and minor members of their families;

3) unaccompanied foreign minors;

4) foreign nationals who have been granted subsidiary protection in the Republic of Lithuania;

5) persons to whom the Law on Health Insurance must apply under EU regulations on the coordination of social security systems.

All these groups become insured if they pay compulsory health insurance contributions or such contributions are paid by the insurers or the State.

Citizens of the Republic of Lithuania, permanently or temporarily residing in the countries which have concluded with the Republic of Lithuania the international agreements regarding the compulsory health insurance, as well as citizens of these countries, permanently or temporarily residing in the Republic of Lithuania, are covered by the compulsory health insurance in accordance with the procedure laid down by the said agreements.

The following persons shall be considered as persons insured by the state (except those who according to the Law on Health Insurance must pay or for whom compulsory health insurance contributions are paid by insurers):

1) persons who receive any type of pension or relief compensation set by laws of the Republic of Lithuania;

2) unemployed persons registered with local labour exchange offices and persons involved in vocational training measures organised by local labour exchange offices, unless they sign an employment contract;

3) unemployed persons of working age who have statutory compulsory state social pension insurance record required for receiving the state social insurance old-age pension;

4) women who are granted a maternity leave and unemployed women during the period of pregnancy 70 days before the child birth (after 28 pregnancy weeks and over) and 56 days after the child birth;

5) one of the parents/adoptive parents raising a child under 8 years of age, one of the guardians providing guardianship for a child under 8 years of age in the family, also one of the parents/adoptive parents raising two or more minor children, one of the guardians/caretakers providing guardianship for/taking care of two or more minor children in the family;

6) persons under the age of 18 years;

7) pupils of general education schools, full-time students of vocational schools, post-secondary and higher education institutions of the Republic of Lithuania, also citizens of the Republic of Lithuania and foreign nationals and stateless persons permanently residing in the Republic of Lithuania, who are full-time students of higher education institutions of the Member States of the European Union;

8) persons supported by the state and provided with a social benefit;

9) one of the parents/adoptive parents, guardian or caretaker nursing at home a person for whom a disability level is established/disabled child or a person who was recognised as having incapacity for work (before 1 July 2005 – a person with disability of category I) before he reached the age of 24, or a person who before he reached the age of 26 was recognised as having incapacity for work (before 1 July 2005 – a person with disability of category I) because of an illness which occurred before he reached the age of 24, or a person who is identified as being in need of permanent nursing (before 1 July 2005 – total disability);

10) persons who have been recognised as disabled in accordance with the procedure laid down by legal acts;

11) persons suffering from publicly dangerous communicable diseases which are included in the list defined by the Ministry of Health;

12) participants of the opposition/resistance – volunteer soldiers, participants of fights for freedom, rehabilitated political prisoners and similar persons, deportees and similar persons, also victims of the events of 13 January 1991 or other events injured while defending Lithuania’s independence and statehood;

13) persons who contributed to the post-accident management at the Chernobyl nuclear power plant;

14) former inmates of the ghetto and juvenile prisoners kept at fascist forced confinement places;

15) clergymen of traditional religious associations recognised by the state, students of clergy training schools, novices undergoing monastic formation in novitiates;

16) persons for whom the legal status of participants of the war in Afghanistan is recognised in accordance with the procedure laid down by law;

17) unaccompanied foreign minors;

18) the spouse of the President of the Republic who has not reached the pensionable age and does not have insured income – for the duration of the term of office of the President of the Republic;

19) persons engaged in voluntary hands-on training in accordance with the procedure defined by the Law on Support for Employment.

 
Geographical Scope The territory of the Republic of Lithuania.
 
Taxpayers
The base or rate of social security contributions paid by Employees on the income of employees and of blue collar workers Rates are identical
Bases are identical

Comments

Domestic-source income of non-residents is Subject to SSCer
Not Subject to SSCer

Comments


Comments

1. Insurers shall pay compulsory health insurance contributions amounting to 3 per cent of the income calculated in accordance with the procedure laid down by the Law on State Social Insurance, on which social insurance contributions are calculated, for the following persons:

1) who work under the employment contract, hold elective positions on the membership basis in elective organizations, work in partnerships, agricultural companies or cooperative organizations on the membership basis, civil servants of public administration, covert participants of criminal intelligence who are paid remuneration according to written agreements on confidential co-operation concluded with them, as well as persons referred to in subparagraphs 1 and 2 of paragraph 2 of Article 4 of the Law on State Social Insurance;

2) state politicians, judges and candidates to judges of the Constitutional Court, the Supreme Court of Lithuania, other courts, officers of prosecutors’ offices, the chairman of the Board of the Bank of Lithuania, his deputies, members of the Board, heads of state institutions establishments appointed by the Seimas or the President of the Republic, other officers of state institutions or establishments appointed by the Seimas or the President of the Republic, chairmen of state (standing) commissions and councils appointed by the Seimas or the President of the Republic, chairman of other state (standing) commissions and councils, their deputies and members, as well as officers of the commissions or councils set up under special laws, provided they receive remuneration for their work;

2. Persons referred to in paragraph 1 of Article 17 of the Law on Health Insurance and in subparagraphs 1 and 2 of paragraph 2 of Article 4 of the Law on State Social Insurance shall pay compulsory health insurance contributions in the amount of 6 per cent on the income calculated for a person in accordance with the procedure laid down by the Law on State Social Insurance, on the basis of which social insurance contributions are calculated.

3. Persons receiving income under the copyright contract as well as income from sports activities, performing activities, with the exception of the persons who engage in an appropriate individual activity, shall pay compulsory health insurance contributions in the amount of 6 per cent, and the insurers – compulsory health insurance contributions in the amount of 3 per cent on the income on the basis of which social insurance contributions are calculated. For the persons having the status of artistic creator who do not receive income under the copyright contract and who are not the persons referred to in paragraph 4 of Article 6, paragraph 1 and paragraphs 4–9 of Article 17 of the Law on Health Insurance the compulsory health insurance contributions shall be paid in the manner prescribed by the Government from the Programme of Social Protection of Artistic Creators by the state budget appropriations manager specified in the Law of the Republic of Lithuania on the Approval of Financial Indicators of the State Budget and Municipal Budgets for an Appropriate Year. The amount of such contribution – 9 per cent of the minimum monthly earnings effective on the last day of the month for which the contribution is being paid. 

4. Natural persons who engage in the following activities shall pay compulsory health insurance contributions in the amount of 9 per cent on the income on the basis of which their social insurance contributions are calculated:

1) individual non-agricultural activities, with the exception of the persons specified in paragraph 5 of Article 17 of the Law on Health Insurance;

2) individual agricultural activities as well as value added tax payers (with the exception of the persons specified in paragraph 7 of Article 17 of the Law on Health Insurance).

5. Natural persons who, while conducting individual activities, pay the income tax of individuals on the income from individual activities when acquiring a business certificate, shall, each month, pay compulsory health insurance contributions in the amount of 9 per cent of the minimum monthly earnings which are valid on the last day of the month for which a contribution is being paid. Contributions of the persons referred to in paragraph 4 of Article 6, subparagraphs 1 and 2 of paragraph 1 as well as paragraph 2 of Article 17 of the Law on Health Insurance, shall be calculated in proportion to the period of validity of the issued business certificate.

6. Individual enterprises shall pay for owners of individual enterprises, partnerships shall pay for members of partnerships and small partnerships shall pay for members of small partnerships the compulsory health insurance contributions in the amount of 9 per cent on the sum on the basis of which their social insurance contributions are calculated. In the cases where an individual enterprise, a partnership or a small partnership does not temporarily carry out activities and has informed about this fact the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania in accordance with the procedure laid down by it or the above-mentioned enterprise or partnership has the status of an enterprise in bankruptcy or in liquidation, owners of individual enterprises, members of partnerships and members of small partnerships shall, each month, pay for themselves the compulsory health insurance contributions equalling to 9 per cent of the minimum monthly earnings valid on the last day of the month for which a contribution is being paid, provided they do not belong to the persons specified in paragraphs 1–8 of Article 17 and in paragraph 4 of Article 6 of the Law on Health Insurance.

7. Persons who are not the persons listed in paragraphs 1–5 of Article 17 and paragraph 4 of Article 6 of the Law on Health Insurance and the economic size of the agricultural holding or the holding whereof, in accordance with the calculations carried out by the State Enterprise Agri-Information and Rural Business Centre for a period from the 1st of January to the 31st of December of the last year, does not exceed 2 economic size units shall, each month, pay for themselves compulsory health insurance contributions in the amount of 3 per cent of the minimum monthly earnings which are valid on the last day of the month for which the contribution is being paid.

8. Persons who receive allowances, specified in the Law on Sickness and Maternity Social Insurance, from the budget of the State Social Insurance Fund, on the basis of which the personal income tax must be exacted in accordance with the procedure laid down by the Law on Personal Income Tax shall pay compulsory health insurance contributions in the amount of 6 per cent on such income.

9. Persons who do not fall within the categories referred to in paragraphs 1–8 of Article 17 and paragraph 4 of Article 6 of the Law on Health Insurance, shall, each month, pay for themselves compulsory health insurance contributions in the amount of 9 per cent of the minimum monthly earnings valid on the last day of the month for which the contribution is being paid.

10. Customers provided with agricultural and forestry services validated by a receipt, where the provision of such services is defined by the Law on the Provision of Agricultural and Forestry Services Validated by a Receipt, shall pay for service providers compulsory health insurance contributions in the amount of 9% of the remuneration amount calculated for a relevant service provider in relation to the services supplied.

 
Tax object and basis of assessment
Employees pay social security contributions for








Comments

Base for all contributions listed here above is the same Yes No

As general rule, the income subject to Social Security Contributions of Employees includes























Comments

Income considered Domestic income
Worldwide income
Comments

Benefits in kind

The following benefits in kind are usually (partially or fully) subject to social security contributions paid by Employees












Comments


Comments
 
Deductions, Allowances, Credits, Exemptions
Capped contributions No cap
Cap in monetary units:
Cap in % of the tax base:

Reduction

The reduction is
No reduction
A lump-sum amount
In percentage of base:
     
Based on salary
Capped
Comments

There is no cap for employees. The annual compulsory health insurance contribution on the income from individual activities of the persons referred to in paragraph 4 of Article 17 of the Law on Health Insurance, who engage in individual non-agricultural activities, is calculated on the sum which does not exceed the sum of 48 amounts of the taxable income approved by the Government of the Republic of Lithuania for the current year. The annual compulsory health insurance contribution on the income from individual agricultural activities of the natural persons referred to in paragraph 4 of Article 17 of the Law on Health Insurance, who engage in that type of individual activities, is calculated on the sum which does not exceed the sum of 12 amounts of the taxable income approved by the Government of the Republic of Lithuania for the current year.

The annual contribution of the compulsory health insurance of the persons referred to in paragraph 7 of Article 17 of the Law on Health Insurance cannot be less than 3 per cent of 12 minimum monthly earnings valid on the last day of each appropriate month of that year.


Allowances
The basic yearly allowance for an individual amounts to:
The basic yearly allowance for a couple amounts to:
Additional allowance for 1st child
Additional allowance for 2nd child
Additional allowance for 3rd child
Additional allowance for additional child
Additional allowance for old age dependents
Comments

Credits
The basic yearly credit for an individual amounts to:
The basic yearly credit for a couple amounts to:
Additional credit for 1st child
Additional credit for 2nd child
Additional credit for 3rd child
Additional credit for additional child
Additional credit for old age dependents

Social Security Contributions paid by Employees are tax deductible Yes No


Comments

 
Rate(s) Structure
The following rates apply to Social Security Contributions paid by Employees
Pensions

Health care
9.00 %  From  EUR/Natcur  To  EUR/Natcur

Unemployment

Child care

Work-related illnesses and/or accidents

Education leave

Maternity leave

Others

Comments

Special surcharges

There are special surcharges in the form of:
Surcharge 1 : Name:
A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments



Comments
 
Tax due date

Persons specified in paragraphs 4 and 5 of Article 17 of the Law on Health Insurance have a right to pay compulsory health insurance contributions once a year but not later than until the 1st of May of the next year for the months for which they themselves pay the compulsory health insurance contributions referred to in paragraphs 1, 2 and 6 of Article 17 of the Law on Health Insurance or/and the said contributions are paid on their behalf, or they fall under the category of persons specified in paragraph 4 of Article 6 of the Law on Health Insurance

 
Tax collector

The collectors of compulsory health insurance contributions are:

  1. State Tax Inspectorate under the Ministry of Finance;
  2. administrative bodies of the State Social Insurance Fund;

The compulsory health insurance contributions are transferred to the account of the budget of the Compulsory Health Insurance Fund of the National Health Insurance Fund.

 
Special features

The annual contribution of the compulsory health insurance of the persons, except the persons referred to in paragraphs 1 and 7 of  Article 17 and paragraph 4 of article 6 of the Law on Health Insurance, and subparagraphs 1 and 2 of paragraph 2 of article 4 of the Law on State Social Insurance, may not be less than 9 per cent of 12 minimum monthly wages valid on the last day of each appropriate month of that year.

The annual contribution of the compulsory health insurance of the persons referred to in paragraph 7 of Article 17 may not be less than 3 per cent of 12 minimum monthly wages valid on the last day of each appropriate month of that year.

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d61131 + d61132

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 4,518.96 LTL 13.56
2011 4,789.97 LTL 15.32
2010 4,690.25 LTL 16.73
2009 4,467.79 LTL 16.59
2008 4,584.42 LTL 14.02
2007 3,997.50 LTL 13.77
2006 3,407.14 LTL 14.15
2005 2,887.94 LTL 13.75
2004 2,390.33 LTL 13.11
2003 2,104.49 LTL 12.63
2002 1,922.84 LTL 12.65
2001 1,874.65 LTL 13.21
2000 1,828.26 LTL 13.68
1999 1,831.41 LTL 14.41
1998 1,943.98 LTL 14.93
1997 1,309.39 LTL 11.17

Comments