Everything about Sodra contributions (VSD/PSD), funded pension accumulation and optimisation strategies for self-employed workers in Lithuania.
Back to pension hubLegal retirement age (2026)
Total social contributions
State subsidy Pillar 2
Minimum monthly pension
In Lithuania, self-employed pensions (individualios veiklos vykdytojai) are managed by Sodra (Valstybinio socialinio draudimo fondo valdyba). The system rests on three pillars: the mandatory pay-as-you-go scheme (Pillar 1 Sodra), private funded pension funds (Pillar 2) and voluntary savings (Pillar 3).
Sodra administers the entire Lithuanian social security system, including the collection of VSD (state social insurance) and PSD (mandatory health insurance) contributions. All self-employed persons carrying out individual activities must register and contribute.
Lithuanian self-employed workers pay contributions calculated on their net self-employment income:
| Pension insurance (pensiju draudimas): 15.78% of income (Pillar 1) |
| Health insurance (PSD): 6.98% of income |
Pillar 2 (II pakopos pensiju fondai) allows self-employed workers to accumulate retirement capital through private funds. Participation is voluntary for the self-employed.
How it works: the participant contributes 3% of their income and the state adds a 1.5% subsidy. The funds are invested and paid out as an annuity at retirement.
Pillar 3 (III pakopos) is entirely voluntary. Contributions are tax-deductible up to 25% of annual income. The funds are managed by investment companies or insurers.
Even though it is not mandatory for the self-employed, the 1.5% state subsidy represents an immediate return. Do not leave this benefit on the table.
Take advantage of the tax deduction (up to 25% of income) to build supplementary savings while reducing your income tax.
For activities under a business certificate, the base is 90% of net income; for individual activities, it is 50%. Your pension depends directly on this base.
The Lithuanian minimum pension (~EUR 263/month) is low. Combine all three pillars to ensure a decent standard of living in retirement.
BoostPro AI analyses your situation and proposes a personalised strategy combining all three pillars of the Lithuanian pension system.
Start a free diagnosticYes. All self-employed persons carrying out individual activities (individuali veikla) in Lithuania must register with Sodra and pay VSD (social insurance) and PSD (health insurance) contributions.
Total mandatory contributions amount to about 19.5% of income: 15.78% for pension insurance (pensiju draudimas) and 6.98% for health insurance (PSD). The calculation base is 90% of net income for business certificates and 50% for individual activities.
Pillar 2 is voluntary for the self-employed. The participant contributes 3% of their income to a private pension fund and the state adds a 1.5% subsidy. The funds are invested and paid out as an annuity at retirement.
The minimum old-age pension (senatvės pensija) in Lithuania is about EUR 263 per month for a person with at least 15 years of contributions. A full pension requires 32 years of contributions (threshold increasing gradually).
The legal retirement age in Lithuania was 64 years and 6 months in 2024 and is rising gradually to reach 65 by 2026. This threshold applies to self-employed workers and employees alike.
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