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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.




GDP per Capita

$85.999 billion

Total GDP


Total Population


Human Development Index

UTC+2 (DST +1)

Time Zone


Official Language

Euro (EUR)


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.


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.

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