Novel regulations are set to mandate that all employers of a single individual pay social security contributions proportionally based on the Minimum Monthly Wage (MMA), even in cases where the employee’s actual monthly earnings are lower.
Closing the Social Security Gap
Social Security and Labour Minister Jūratė Zailskienė stated that these legislative changes aim to eliminate a “gap” previously used by employers to avoid paying minimum social security contributions, often referred to as “floors.”
The Minister noted that the move is designed to strengthen social guarantees for employees and reduce the risk of abuse. These changes are expected to impact more than 8,000 working individuals who are employed by multiple entities.
Addressing Market Abuse
Under current rules, employers pay social security contributions based on the actual salary paid to an employee. This has led to instances where a worker performing the same functions at one location is formally employed by several different employers to reduce the companies’ tax obligations.
Sodra data from 2025 highlights the scale of this practice: 5,072 people worked for two employers without earning the MMA, 1,943 worked for three, and 630 worked for four. Smaller groups worked for up to 12 different employers.
New Contribution Rules and Calculations
The proposed system requires contributions to be calculated proportionally to the number of employers. For example, with two employers, the contribution baseline would be at least 576.50 Eur (half of the 1,153 Eur MMA); with three employers, it would be 384.33 Eur.
The system will also account for overpayments. If one employer pays contributions on a salary higher than the proportional MMA share, that excess may be credited to other employers. Calculations will be adjusted based on actual days worked, accounting for sick leave or periods of non-insurance.
The Role of Sodra in Billing
Employees will not be required to make any payments under this new system. Sodra will collect wage data from all employers, calculate any additional required contributions, and send the resulting bills directly to the employers.
For instance, if an employee earns 700 Eur from Employer A, 120 Eur from Employer B, and 50 Eur from Employer C, Sodra will calculate the shortfall for Employers B and C and bill them for the additional amounts.
Exceptions to the Rule
An exception is proposed for employers who hire participants of employment programs on a fixed-term basis. In these specific cases, employers may continue to pay social security contributions based on the actual wages paid rather than the MMA.
This measure is part of the ongoing implementation of the Monetary Social Assistance reform, specifically for those offered employment-increasing measures instead of community-beneficial work.
Frequently Asked Questions
Who will be responsible for paying the additional contributions?
The employers are responsible for the payments. Sodra will calculate the necessary additional contributions and send the invoices directly to the employers; the employee does not pay anything.
How many workers are expected to be affected by these changes?
Minister Jūratė Zailskienė indicated that the changes would affect more than 8,000 working individuals.
What happens if a worker is on sick leave?
The proportional MMA share is recalculated based on the actual number of working days in the month (assuming a 5-day work week) to account for periods such as sick leave or non-insurance periods.
Do you believe these measures will effectively discourage the practice of splitting employment contracts to avoid taxes?
