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Europe

Lithuania

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Employer of Record (EOR) in Lithuania

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
Lithuania Introduction

Lithuania is a Baltic country in northern Europe, bordered by Latvia, Belarus, Poland, and Russia. It is considered a developed country with a high income advanced economy. Lithuania ranks well in terms of civil liberties, press freedom, internet freedom, democratic governance, and peacefulness.

Paid Leave and Statutory Leave

Parental Leave

Pregnant employees are entitled to 126 days of paid maternity leave, which is paid for by social security at about 77% of the regular pay (no less than EUR 240 per month).

Fathers/partners can receive 30 days of paid paternity leave within the first 3 months after the birth. This is also paid by social security at about 77% of the regular pay. Employees can also take up to 1 year of parental leave paid between 40%-100% of the regular salary (depending on the age of the child).

Sick Leave

Employees are entitled to sick leave paid at their regular salary by the employer for the first 2 days, then 62% after that paid for by social security.

Paid Leave

There are 16 public holidays in Lithuania, and employees can also take 20 days of paid time off each year. After 10 years at the same company, employees can receive 3 additional days.

Wage Requirements and Working Hours

The minimum wage is EUR 500 per month, with a standard workweek of 40 hours at 8 hours per day. Overtime is regulated by contracts and collective agreements. Employees can work a maximum of 12 overtime hours over 7 days if they consent in writing. Overtime is paid at between 150%-200% of the regular rate.

Termination Process

Process

Employers can terminate a fix term contract for the following reasons – business, personal or worker’s’ misconduct. It requires notice and a written explanation for the termination. If the reason is misconduct, a warning must be given and the employee gets a chance to explain their actions.

Notice Period

The standard notice period is 30 days for employees who have completed at least 1 year at their company, and 2 weeks for employees with less than 1 year.

Severance Pay

Severance payments depend on how long an employee has worked at their company and range from 1 month to 6 months of wages.

Additional Information

While a 13th-month salary is not required by law in Lithuania, most employers choose to pay a performance-based bonus.

OVERVIEW
Language(s):
Lithuanian
Currency:
Euro (EUR)
Capital City:
Vilnius
Population:
2.6 Million
Cost of Living Rank:
63rd
VAT (Valued Added Tax):
21%
Employer TaxES
1.77%
(estimated)

★  1.77% - Social Insurance

Simplified Global HR and Payroll.
Let’s work on it together.

We've made the process really simple
with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
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Available in 150+ countries
How Remofirst employs in Lithuania

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Lithuania get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Lithuania are paid on time in Euro (EUR). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Lithuania, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.