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hire in Lithuania

Lithuania PEO &
Employer of Record

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES Lithuanian / English

PAYROLL TAX 1.77%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours

Hire and pay talents
with Horizons in
180+ countries

Simple, compliant hiring with Horizons PEO

Hire in Lithuania

Horizons ensures day-to-day guidance to help your business navigate Australian labor laws and regulations. Horizons also ensures payroll is processed weekly or fortnightly (the standard periods in Australia), and that taxes are withheld as required.

As the Australia Employer of Record, Horizons is responsible for employee income tax withholding, payment of payroll taxes to state authorities, and submission of tax returns to the Australian Tax Office. 

Partnering with our Australia PEO is the quickest and most cost-effective way to enter the Australian market.

Facts & Stats

PEO Platform Hire in Lithuania, and pay employees through our platform or app.PEO Cost Our Lithuania PEO solution is the most affordable on the market.Time-to-hire Fast onboarding in Lithuania, hire in as little as 24 hours.
Contracts We draft labor contracts compliant with Lithuanian labor law.Local Benefits We administer all mandatory benefits and contributions in Lithuania.180+ Countries It doesn’t stop with Lithuania — we are an international PEO
stay compliant with Lithuania labor laws

Employment Laws

Employment contracts in Lithuania

Employment contracts in Lithuania are usually indefinite-term, and a formal contract of employment is required for all employees. Any contracts should include all the relevant details of employment, such as salary/wage, benefits, terms of termination and severance, and so on. They should also be written in Lithuanian and use the local currency of the Euro.

Fixed-term
Probationary period0 – 3 months
Termination notice period

For 0 – 1 year of service: 14 days

For 1+ year of service: 30 days

Severance

For 0 – 1 year of service: 14 days’ salary

For 1+ year of service: 30 days’ salary

Indefinite
Probationary period0 – 3 months
Termination notice period

For 0 – 1 year of service: 14 days

For 1+ year of service: 30 days

Severance

For 0 – 1 year of service: 14 days’ salary

For 1+ year of service: 30 days’ salary

Working hours in Lithuania

The standard working week in Lithuania is 40 hours, made up of five eight-hour days.

Hire compliantly in Lithuania without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

Public holidays in Lithuania

There are several annual public holidays in Lithuania, and most employees are given the day off work for them. The following are the most commonly celebrated:

Lithuania has a range of national public holidays that are celebrated annually. In 2023 these holidays are:
DateHoliday name
1 Jan, 2023New Year’s Day
16 Feb, 2023Independence Restoration Day
11 Mar, 2023Independence Day/National Day
9 Apr, 2023Easter Sunday
10 Apr, 2023Easter Monday
1 May, 2023Labour Day
7 May, 2023Mothers’ Day
4 Jun, 2023Fathers’ Day
24 Jun, 2023St John’s Day/Day of Dew
6 Jul, 2023King Mindaugas’ Coronation Day
15 Aug, 2023Feast of the Assumption of Mary
1 Nov, 2023All Saints’ Day
2 Nov, 2023All Souls’ Day
24 Dec, 2023Christmas Eve
25 Dec, 2023Christmas Day
26 Dec, 2023Second Day of Christmas

Vacation leave in Lithuania

Employees in Lithuania are entitled to four weeks (20 days) of paid vacation leave each year. This leave must be taken in different parts, with a maximum of 14 days taken at a time.

Sick leave in Lithuania

Employees in Lithuania are entitled to paid sick leave from work. The first two days of absence are compensated at a minimum of 80%, covered by their employer. The third to the seventh day must be compensated at a minimum of 40% of normal pay, then the government covers any further absence at a rate of 80% of normal pay.

Employers cannot terminate an employee who is absent due to sickness for 120 days.

Parental leave in Lithuania

Employers in Lithuania are usually required to give employees 70 days of maternity before they give birth and 56 days after they give birth. Employees on maternity leave are compensated by the country’s social security scheme.

It is also possible for employees to take parental, or caregiver leave to raise a child, which is also compensated by the state.

Terminations and severance in Lithuania

Employees in Lithuania can terminate an employment contract with 14 days of written notice. Employers must provide two months of written notice. Employees terminated when not at fault cause are generally entitled to a severance payment of between one and six months of pay, depending on their length of service.

Probation periods in Lithuania can last for a maximum of three months, and the notice period is three days during this time.

Taxation in Lithuania

Employees usually need to pay a health insurance contribution of 6% of salary, and a social insurance contribution of 3%.

Employers must pay 27.98% of salaries to social insurance, as well as a health insurance contribution of 3% and a State Guarantee contribution of 0.2%.

Income tax in Lithuania is generally set at 15% or 20%, depending on income level.

Corporate tax in Lithuania is 15% for most companies.

Health coverage in Lithuania

Mandatory health insurance from employers and employees, as well as state funding, cover the public health system, so employers do not need to offer private insurance. Some employers may still choose to offer supplementary private insurance to their employees.

hassle-free Lithuania compensation & benefits

Compensation & Benefits

Compensation laws in Lithuania

The minimum wage in Lithuania in 2020 is €607 per month for full-time workers.

Minimum Wage Country Comparison Chart(Per month in USD)
Switzerland (Geneva)$4,000
Italy$2,255
Australia$1996
Algeria$156
Uzbekistan$22
Benefit management in Lithuania

Building a benefits system for your Lithuanian workforce can be difficult and complicated to navigate if you are not familiar with the country, its customs, and its employment laws. To set it up independently, it can take several weeks and potentially lead to unexpected delays.

Horizons can simplify your Lithuania benefits management. Our Lithuania experts can handle everything for you, helping you focus on a successful expansion operation.

Hire in Lithuania in 24h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

A Lithuania PEO and a Lithuania EOR are two types of companies which specialize in providing human resources services to businesses in Lithuania.

The main difference between a Lithuania PEO and a Lithuania EOR is in the scope of their services.

Lithuania PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging a Lithuania PEO is essentially outsourcing your HR duties in Lithuania.

Lithuania EORs actually take over as the legal employer of your employees based abroad. Lithuania EORs become responsible for labor compliance for your employees in Lithuania.

At Horizons, we offer both PEO and EOR services in Lithuania. Get in touch now and let us know what service you are seeking.

A PEO in Lithuania can feasibly hire both local and foreign nationals to work in Lithuania.

However, the ability of Horizons to sponsor your foreign national employee in Lithuania may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

In most cases, Horizons’ Lithuania PEO can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Lithuania.

It is possible to get a work visa in Lithuania. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Lithuania are limited, however—get started today to secure your employees’ visa spot.