Hire in Lithuania

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.

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A quick overview of Lithuania

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Cost of living index

$$$ (69 of 139 nations)

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Currency

Euro (EUR, €)

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Payroll frequency

Biweekly/Monthly

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

Vilnius

Official language/s

Lithuanian

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Population

2.8 million (2023 est.)

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VAT - standard rate

21%

The holidays mentioned below are valid for the year 2025.

January 1New Year’s Day
February 16Restoration of State Day
March 11Restoration of Independence Day
April 20Easter SundayMovable
April 21Easter MondayMovable
May 1Labor Day
June 24Midsummer/St John’s DayMovable
July 6Anniversary of the Coronation of King
August 15Assumption Day
November 1All Saints’ Day
November 2All Souls’ Day
December 24Christmas Eve
December 25Christmas Day
December 26Second Day of Christmas

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.

  • 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.

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

Insurances Rates Insurances Rates
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%
Total 1.77% Total 2.49%

 

Employee Contributions

Insurances Rates
Pension insurance (Pensijų) 8.72%
Sickness insurance (Ligos) 1.99%
Maternity insurance (Motinystės) 1.81%
Health insurance (Sveikatos) 6.98
Total 19.50%

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.

 

Overtime

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 Basis Notice 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

 

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.

 

Overtime

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 Basis Notice 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

 

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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

Insurances Rates Insurances Rates
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%
Total 1.77% Total 2.49%

 

Employee Contributions

Insurances Rates
Pension insurance (Pensijų) 8.72%
Sickness insurance (Ligos) 1.99%
Maternity insurance (Motinystės) 1.81%
Health insurance (Sveikatos) 6.98
Total 19.50%