OSH Violations to Trigger Higher Sodra Insurance Rates from 2027

The State Labour Inspectorate of Lithuania (VDI) has issued an official notice reminding employers that occupational safety and health (OSH) violations and unaddressed workplace risks directly affect a company's mandatory social insurance contribution rate for accidents at work and occupational diseases.

Between November 1, 2025, and August 27, 2026, labour inspectors issued 77 formal R1 notices requiring businesses to rectify critical OSH violations. Companies that received an R1 notice will be assigned to a higher tariff group starting January 1, 2027. Construction companies accounted for 50.65% of all notices, followed by manufacturing entities at 25.97%.

Pursuant to Article 29 of the Republic of Lithuania Law on Social Insurance of Accidents at Work and Occupational Diseases, VDI inspection findings are transferred directly to Sodra to determine each policyholder's contribution group. A company is reclassified into a higher tariff category (Group II, III, or IV) if:

1. A severe or fatal workplace accident occurred due to non-compliance with statutory safety requirements;
2. Inspectors issued an order to suspend operations or equipment during an inspection;
3. Risk assessments failed to cover falls from height, toxic chemical exposure, falling loads, machinery overturning, or soil collapse, or required preventive measures were not implemented.

Moving to a higher tariff group can substantially increase employer payroll costs. Current statutory benchmark rates range from 0.14% (Group I) to 1.4% (Group IV). The exact percentage rates for 2027 will be finalised upon the parliamentary approval of the 2027 State Social Insurance Fund budget law in late 2026.

The list of non-compliant entities is not public; notifications are sent individually via the Sodra portal. Employers and payroll teams must:

1. Monitor and fulfill all corrective measures specified in the VDI R1 notice within mandatory deadlines;
2. Incorporate increased employer social insurance contribution costs into the financial forecast starting January 1, 2027;
3. Inspect the newly assigned tariff group in the Sodra portal at the end of 2026 and adjust payroll system parameters prior to the first payroll run of 2027.