Currency: Euro (EUR)

Capital: Vilnius

Official language: Lithuanian

Payroll Cycle: Monthly

Paid Time Off

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

Public Holidays

There are 11 Public Holidays per year, among which you will find:

• New Year’s day
• Labor Day
• Easter Sunday
• Christmas Eve
• Christmas Day

Individual Income Tax

The Individual tax rate in Lithuania is 20% flat

Employer Tax

Approximately, 1.77% - 3% of employee salary

Probation Period

The normal probation period is 3 months.

Minimum Wage Requirements

The Minimum Wage is EUR 607 per month.

Maximum working hours and overtime

Normal working hours over a five-day period must not exceed 40 hours a week, 8 daily.

Parental Leave

100% paid up to one year of parental leave. If the parent choses to receive the benefit until the child reaches two years old, 70% is paid until child reaches 1 year old and 40% thereafter. The pay calculation is the same as specified in the ‘Maternity Leave’ section

• Maternity Leave: employees receive 18 weeks (126 days) of paid maternity leave based on an employee’s average monthly wage during 12 consecutive calendar months prior to the beginning of maternity leave. An additional 2 weeks could be granted under certain circumstances. The maternity benefit is 77.58% of the recipient’s 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. The minimum maternity benefit per month cannot be less than EUR 228.
• 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.

Employers must provide the correct notice. Severance payments are calculated per 1 month’s 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’ notice

Notice periods are increased 3 times under certain circumstances.