Hire employees in Lithuania, hassle-free

Onboard a new employee with Deel in less than 24 hours, with just a few clicks. First, the client signs the Master Service agreement on Deel, their employee’s onboarded by the EOR, and that's it. Now you’re hiring compliantly.

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Employee - Lithuania

Hire employees in Lithuania No entity needed.

Usually, to hire in Lithuania,  your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Lithuania also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Lithuania quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.

All the necessary benefits for Lithuania built right in

Deel allows you to provide localized benefits for employees in Lithuania within minutes. All in one manageable online dashboard.

  • Health Insurance
  • Worker Compensation Insurance
  • Unemployment Insurance
  • State Guarantee Fund
  • Employment Benefit Fund

Contents


    Speak to our team about how to compliantly hire in Lithuania

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    Quick Overview

    Currency: Euro (EUR)

    Capital: Vilnius

    Official language: Lithuanian

    Payroll Cycle: Monthly

    Statutory Holidays

    Paid Time Off

    In Lithuania, employees are entitled to 20 days of paid holiday a year.

    Public Holidays

    There are 16 public holidays per year:

    • New Year’s day
    • Day of Restoration of the Lithuanian State
    • Lithuanian Independence Restoration Day
    • Easter Sunday
    • Easter Monday
    • Labour Day
    • Mother's Day
    • Father's Day
    • St. John's Day
    • Statehood Day
    • Assumption Day
    • All Saints' Day
    • All Souls' Day
    • Christmas Eve
    • 1st Christmas Day
    • 2nd Christmas Day

    General Taxation

    Individual Income Tax

    The Individual tax rate in Lithuania is usually 20%. For wages salaries over EUR 81,162 a year, the income tax is 32%.

    Employer Tax

    The employer cost range is around 2.5% of employee salary.

    Additional information

    Probation Period

    Standard probation period is 3 months.

    Minimum Wage Requirements

    The minimum monthly wage amounting to 642 EUR. This wage can only be paid for unskilled labour

    Maximum working hours and overtime

    Standard working hours over a five-day period must not exceed 40 hours a week, 8 hours daily. The maximum working time, including overtime, may not exceed 48 hours over each period of 7 days.

    Parental Leave

    The employer must pay 100% up to one year of parental leave. If the parent chooses to receive the benefit until the child reaches two years old, 70% is paid until child reaches 1 year old and 40% thereafter.

    • Maternity leave: employees receive 18 weeks of paid maternity leave based on an employee’s average monthly wage during 12 consecutive calendar months prior to the beginning of maternity leave. The maternity benefit is 77.58% of the employees compensatory earnings. This amount is calculated on the basis of the person’s insured income received during the 12 consecutive calendar months preceding the month in which entitlement to the maternity benefit arose.
    • Paternity Leave: employees are entitled to 4 weeks of paternity leave. The pay calculation is the same for Maternity Leave.

    Sick Leave

    The employer and social security each must pay the employee 50% of their salary for the first 3 days of sick leave. From the 4th day on, social security pays the employee 60% of their salary, and the employer is no longer obligated to pay.

    Termination requirements for employees in

    Employers must provide the correct notice. Severance payments are calculated per 1 month average wage when the employee has been in the company for 12 months or less. And up to six months average when the employment is over 240 months.

    Notice Period

    In Lithuania, the standard notice period is 1 month. However, it should be based on the length of the labor relationship:

    • Up to 1 year of employment -2 weeks of notice is needed.
    • Under specific circumstances - 6 weeks notice is needed.

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