Country Explorer
Compliantly hire and expand your business in Lithuania
When it comes to employing and managing employees in Lithuania, there are specific procedures and regulations that must be followed.
Lithuania is a country in the Baltic region of Europe. It is one of three Baltic states and lies on the eastern shore of the Baltic Sea. It borders Latvia to the north, Belarus to the east and south, Poland to the south, and Russia to the southwest, with a maritime border with Sweden to the west. Lithuanians belong to the ethnolinguistic group of the Balts and speak Lithuanian, one of only a few living Baltic languages, and the most widely spoken.
Vilnius
Capital
$31,118
GDP per Capita
$85.999 billion
Total GDP
2,886,515
Total Population
0.879
Human Development Index
UTC+2 (DST +1)
Time Zone
Lithuanian
Official Language
Euro (EUR)
Currency
65,300 km2 (25,200 mi2)
Land Area
Here's what you need to know
Overall, employing workers in Lithuania requires careful attention to the specific requirements and regulations. Working with a local expert in employment and payroll can help ensure that you’re meeting all the legal requirements and providing a positive employment experience for your staff.
Employment contracts are not mandatory in Lithuania, but highly recommended. They should clearly outline:
Job title, duties, and responsibilities
Salary and benefits
Working hours and overtime pay
Leave entitlements (annual leave, sick leave, etc.)
Termination terms (notice period, severance pay)
Confidentiality clauses (if applicable)
Minimum Wage
Lithuania has a national minimum wage, currently set at EUR 730 per month (as of January 1, 2024).
Payroll Terms
Salaries are typically paid monthly by bank transfer on the 10th of the following month. Payslips with details of gross pay, deductions, and net pay are mandatory.
Taxes
Lithuania operates a two-rate income tax system. The standard tax rate is 20%, with a higher rate of 32% applied to income exceeding 60 average salaries per year (around EUR 90,246 in 2022). Employers withhold income tax at source and remit it to the State Tax Inspectorate along with social security contributions.
Social Security
Both employers and employees contribute to social security programs covering pensions, unemployment, healthcare, and parental benefits. Contribution rates vary depending on the employee's salary and type of employment.
Lithuania has a standardized leave policy mandated by the Labour Code:
Annual Leave
Minimum of 20 business days per year (if working 5 days per week) or 24 business days (if working 6 days per week). Employees must be granted at least 4 weeks of leave if the number of working days per week is less or different.
Sick Leave
Up to 120 days per year with doctor's certification.
Maternity Leave
Up to 180 days of paid leave for female employees, followed by an optional unpaid parental leave (up to 2 years).
Paternity Leave
Up to 3 days of paid leave for male employees.
Public Holidays
14 paid public holidays per year.
Probationary Period
The Lithuanian Labour Code allows for a probationary period of up to 3 months. During this time, termination can be easier for both employer and employee.
Termination of Employment
Termination of employment should follow the terms outlined in the contract or the Labour Code. Notice periods vary depending on the reason for termination and the employee's length of service. Severance pay may also be required under certain circumstances.
Download the full Employment & Payroll Guide to Lithuania
Enter your details and receive the full guide to your inbox
Looking to take on the global marketplace with confidence?
Fast-track your EOR quickly and compliantly with the local laws of any country. We are here to help you achieve your international business expansion challenges.
Quick Hassle-Free Market Entry
Agile will help you hire and onboard talent across countries within a week and even less in many cases. So, you can get up and running in a completely new country in a short period.
Cost Effective
Hiring employees without the need to set up a legal entity in countries will help save a lot of time, sometimes up to 85%. In addition, you will not have to worry about establishing a foreign entity and all the maintenance costs that come with it.
Employee Onboarding
As an expert in local laws and regulations, we can help you adhere to the local and national regulations, including the market norms. We offer a ‘ready-made’ HR support infrastructure that takes the guesswork out of hiring international employees.
Payroll Management
Agile handles international payroll processing in adherence to the local rules of a country’s local jurisdiction. It includes utilizing manual as well as automated processes to ensure the local workforce gets their pay after allowing all the right deductions.
Onsite HR & Legal Team
Our team comprises experts who offer local legal guidance through employee onboarding, benefits distribution, HR compliance, contract renewals, termination, and more.
Stay Compliant with Local Laws
By hiring us, you can outsource the complex task of regulatory compliance to the experts. We ensure your company, intellectual property, and support employees are all well-protected.
Everything you need to know to hire globally
Our Ultimate Guide To Global Employment answers all your questions about global EOR, payroll, mobility, benefits, compliance, and more!
Our track record speaks for itself, but don’t take our word for it
"Agile HRO has been a very important partner to us since we set up operations in Singapore in 2021. They have guided us through local laws and ensure we are meeting our HR & Operational obligations. They have provided consistent support and are quick to respond to our queries."
"Agile HRO’s familiarity with HR practices and government regulations helps to ensure that our HR and Payroll obligations are met diligently. This allows us to focus on the development and expansion of our core business in Singapore."
"Agile HRO has helped us scale our business in Singapore from Day 1 giving us more time to focus on building our video production business, and less time worrying about employment applications, payroll and HR."
"Agile HRO service is excellent as the result of the work you did for us, and we are happy with it as overall."
Agile HRO has accelerated the international expansion of hundreds of companies for over 25 years.
Ready to go global?
Agile HRO are not just HR experts; we are your strategic ally in global growth. From consultation to execution, we are dedicated to ensuring your success on the global stage.
