Lithuania: The state social insurance contribution changes as from 1 July together with increased minimum monthly salary.
The minimum monthly salary (MMS) in Lithuania increased by 30 EUR as from 1 July 2016. Currently, the MMS amounts to 380 EUR.
Last time the MMS increased to 350 EUR at the beginning of this year. During the last 10 years the MMS has increased 9 times. In comparison with 2006, the MMA has now increased 2.4 times. The increased MMA also results in an increase in state social insurance (SSI) and compulsory health insurance contributions (CHI).
The CHI contribution is 9% of the MMA and amounts to 34.20 EUR as from 1 July. The following entities and individuals pay CHI contributions: (i) individual companies for their owners; (ii) true partnerships, limited partnerships and small partnerships for their members; (iii) the owners of personal companies which are temporarily not operating or undergoing bankruptcy or liquidation proceedings as well as members of true and limited partnerships; (iv) natural persons engaged in individual activities according to their self-employment certificate or business certificates; (v) other self-insured individuals not involved in economic activity and not insured by the state. Individuals engaged in individual agricultural activities and who meet certain requirements may pay a reduced 3% CHI (11.40 EUR).
As indicated above, the SSI contribution has also changed. 28.5% of the MMS will amount to 108.30 EUR paid as the SSI contribution from 1 July 2016. Individuals engaged in agricultural activities will also need to pay the SSI contribution if their land corresponds to certain criteria. The SSI amounts to 26.3% of the MMS and constitutes 99.94 EUR as from 1 July. The SSI contribution is paid for the owners of personal companies and members of true, limited and small partnerships.
If the above mentioned entities pay additional contributions for cumulative pension funds at their own expense, the rates mentioned for the SSI will increase by 2% (respectively, 30.5% and 28.3%).
Source: Decision No. 644 of 22 June 2016 of the Government of the Republic of Lithuania regarding the minimal monthly salary (TAR, 2016-06-27, No. 2016-17577)