Basic Facts

Lithuania is a country located in Eastern Europe along the Baltic Sea. It is bordered by Latvia to the north, Belarus to the south and east, Poland to the south, and Russia (Kaliningrad district) to the southwest. It covers a land area of 65,286 square kilometers. The World Bank labels Lithuania as a high-income economy. Services dominate the country’s economy, with industry and agriculture also being significant sectors.


*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Lithuania.

Capital :
Currency :
Euro (EUR, €)
Languages spoken :
Population :
2.8 million (2021 est.)
Minimum wage 2023 :
€924 (monthly)
Cost of Living index :
$$$ (69 of 139 nations)
Payroll Frequency :
VAT - standard rate :
GDP - real growth rate :
5% (2021 est.)

Statutory Holidays

The holidays mentioned below are valid for the year 2024.

Holiday Name
Extra Information
January 1
New Year’s Day
February 16
Restoration of State Day
March 11
Restoration of Independence Day
March 31
Easter Sunday
April 1
Easter Monday
May 1
Labor Day
June 24
Midsummer/St John’s Day
July 6
Anniversary of the Coronation of King
August 15
Assumption Day
November 1
All Saints’ Day
November 2
All Souls’ Day
December 24
Christmas Eve
December 25
Christmas Day
December 26
Second Day of Christmas

Contract Sharing Time

The approximate time for sharing the contract with an employee in Lithuania is 4 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

What You Need To Know

  • The notice period is based on the entity initiating the termination of employment, the reasons for termination, and in some cases, the employee’s tenure in the company.
  • Severance pay is regulated by law and the amount paid is determined by the causes of the termination of employment.
  • In addition to open-ended contracts and fixed-term contracts, Lithuania’s Labor code recognizes project-based employment contracts, job sharing employment contracts, employment contracts for several employers, and apprenticeship employment contracts.
  • Employer contributions rates for the Unemployment Insurance Fund are higher for employees on fixed-term contracts compared to those for employees on open-ended contracts.

Labor Conditions

Working Hours

The standard working time of an employee is 40 hours per week and eight hours per day. Employees must be granted a break of a maximum of two hours and a minimum of 30 minutes to rest and to eat. This break must be provided, as a rule, after half of the working day (shift) but not later than after four working hours.



The employee’s overtime work must not exceed four hours on two consecutive days and 120 hours per year. Different annual duration of overtime work may be established in the collective agreement, however, not exceeding 180 hours per year. 

All overtime hours are paid at an overtime compensation rate of 150% of the employee’s regular pay rate.


Probation Period

The probationary period must not exceed three months. In the cases provided for by law, an employee may be asked to undergo a longer probationary period, if that is necessary to assess the employee’s suitability for the job, though this may not be longer than six months.

Termination Notice Period
Termination BasisNotice Period
Termination of an employment contract on the initiative of the employee without valid reasons 
  • 20 calendar days for employees with over 1-month tenure
Termination of an employment contract on the initiative of the employee for valid reasons
  • 5 calender days
Termination of an employment contract on the initiative of the employer due to the fault of the employee
  • No notice period
Termination of the employment contract on the initiative of the employer without the fault of the employee 
  • Less than 1-year tenure: 2 weeks notice required
  • More than 1 year: 1-month notice
Dismissal at the will of the employer
  • 3 working days
Termination of an employment contract by mutual agreement 
  • Written consent is needed in 5 working days; if there is no reply, the proposal to terminate is considered rejected


Leave / Time Off

Annual Leave

Employees are granted an annual leave of at least 20 working days (for those working five days per week) or at least 24 working days (for those working six days per week). Leave is calculated in working days. Public holidays are not included in the duration of the leave. Employment contracts and collective bargaining agreements, and provisions of labor law may provide for longer periods of leave.

Sick Leave

The employee contributes 1.99% to the sickness insurance (Ligos).

In Lithuania, an employee is entitled to paid sick leave. Doctors issue an electronic certificate of incapacity for work (a “medical certificate of absence”) to be presented to the employer. It indicates the period of temporary incapacity, i.e. the amount of time the treatment will take.

The first two days of sickness are paid by the employer at a rate of no more than 62.06%. From the third day of incapacity, sickness benefits are paid by the Social Security Fund Board.

Parental Leave

Child-care Leave

Parental leave lasting until the child becomes three years of age is given at the family’s choice to the mother / foster mother, father / foster father, grandmother, grandparent, or other relatives who actually raise the child or to the employee who has been appointed as the guardian of the child. The employee may take the leave in full or in parts.


Maternity Leave

The employee contributes 1.81% to the maternity insurance (Motinystės).

Mothers are entitled to 70 calendar days of pregnancy and childbirth leave before delivery and 56 calendar days after delivery (70 calendar days in the case of a complicated delivery, twins, or multiple births). 

Employees designated as guardians of newborn children are granted leave for a period running from the day of designation as guardian until the infant reaches the age of 70 days. The maternity benefit is funded by the National Social Security Fund Board.


Paternity Leave

After childbirth, employees are granted an uninterrupted paternity leave of 30 calendar days. The leave is granted at any time from the date of the child’s birth until the child reaches three months. In the case of a complicated delivery, twins, or multiple births, paternity leave is granted from the date of birth until the child reaches six months. 

Adoption Leave

Employees who have been appointed as newborn guardians are entitled to leave from the day that guardianship is established until the baby reaches 70 days. The benefit is paid by SoDra.

Other Types of Paid Leave

Sabbatical Leave

Sabbatical leave of up to 12 months is permitted for employees to pursue creative or scientific endeavors. The remuneration for workers and creative leave is governed by labor law and agreements between the parties.


Unpaid Leave

Unpaid leave is provided at the employee’s request for the following leave categories.

Leave CategoryDuration
For a weddingAt least 3 calendar days
For a funeral of a family memberAt least 3 calendar days
For a disabled personUp to 30 calendar days per year
To an employee who alone takes care of a disabled person where the necessity of continuous care has been prescribed 30 calendar days per year at the time agreed between the parties
To an employee taking care of a sick family memberFor a period recommended by a health institution

Statutory Benefits

The compulsory social security insurance system consists of the following types of social security contributions:

  • Pension insurance;
  • Health insurance;
  • Sickness insurance;
  • Maternity insurance;
  • Unemployment insurance;
  • Insurance from accidents at work and occupational diseases.

Employers contribute 1.77% to the social insurance fund for employees on open-ended contracts and 2.49% for employees on fixed-term contracts. Employees contribute 19.50% to the social insurance fund regardless of their contract types.

The specific contributions for each type of social insurance based on the employee’s contract types are broken down as follows:

Employer Contributions

Open-ended Contracts

Fixed-term Contracts

Unemployment insurance (Nedarbo)1.31%Unemployment insurance (Nedarbo)2.03%
Accidents at work and occupational diseases (Nelaimingų atsitikimų)0.14%Accidents at work and occupational diseases (Nelaimingų atsitikimų)0.14%
Guarantee fund (Garantinis)0.16%Guarantee fund (Garantinis)0.16%
Long-term employment benefit fund (Ilgalaikio darbo)0.16%Long-term employment benefit fund (Ilgalaikio darbo)0.16%


Employee Contributions

Pension insurance (Pensijų)8.72%
Sickness insurance (Ligos)1.99%
Maternity insurance (Motinystės)1.81%
Health insurance (Sveikatos)6.98

Health Insurance

The employer does not pay any contributions to health insurance, while the employee contributes 6.98%.

In Lithuania, there is compulsory health insurance. This is a state insurance system that guarantees healthcare services and reimbursement of healthcare costs, costs of acquiring medicines and medical devices, and rent costs of medical devices that are used for healthcare at home.

Other Insurances

Accident Insurance

Only the employer contributes between 0.14% and 1.4% towards the insurance for accidents at work and occupational diseases depending on the degree of risk of the company’s economic activity.

The sickness benefit because of an accident at work, while on the way to or from work, or because of an occupational disease is payable:

  • For those who have temporarily lost their capacity for work as a result of an occupational injury, an accident on the way to/from work, or an occupational disease, which are recognized as insured events;
  • If the entitlement to it has arisen during the insurance period.
Unemployment Insurance

Employers contribute 1.31% to unemployment insurance for employees on open-ended contracts and 2.03% for employees on fixed-term contracts.

Unemployment insurance is compulsory for all in employment. Benefits are linked to earnings prior to becoming unemployed and to the minimum monthly wage approved by Government. In order to qualify for unemployment benefit (nedarbo išmoka), a person is required to have been insured for at least 12 months in the last 30 months prior to signing on at the Employment Service.

Public Pension

The employer does not pay any contributions to the pension fund, while the employee contributes 8.72%.

The following have the right to receive a pension from SoDra:

  • Those who have reached retirement age. The retirement age has increased every year since 2012 and by 2026, it will be 65 years for both men and women. In 2023, the retirement age is 64 years and six months for men and 64 years for women.  The pension age is currently being increased year by year to 65.
  • Those who have at least a minimum social insurance pension record of 15 years.

Other Statutory Benefits

The Guarantee Fund (Garantinis)

Only the employer contributes 0.16% of the gross wage to the Guarantee Fund.

If a company goes bankrupt, the Guarantee fund is used to satisfy employees’ claims for their unpaid salaries, cash compensations for the unused annual leave, severance pay, pay for the damage caused by occupational accidents or diseases, and payment for idle time.

Long-term Employment Benefit Fund (Ilgalaikio Darbo)

Only the employer contributes 0.16% of the gross wage to the long-term employment benefit fund.

The Long-term Employment Benefit Fund is used for paying severance payments to long-tenured employees who have lost jobs.


The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.

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