Hire in Lithuania
Begin your journey into human resources best practices and recruitment in Lithuania at this point.
Lithuanian Currency
Euro (EUR)
The Capital of Lithuania
Vilnius
Time Zone in Lithuania
GMT+2
Important Facts About the Country of Lithuania
Introduction to Lithuania
Situated in the Baltic region of Europe, Lithuania, officially known as the Republic of Lithuania, shares its land borders with Latvia to the north, Belarus to the south and east, and Russia to the southwest. Positioned along the eastern shore of the Baltic Sea, Lithuania achieved independence from the Soviet Union on March 11, 1990.
What to Know about Lithuania’s Geography
Encompassing a total area of 65,286 square kilometers, Lithuania boasts a coastline stretching 90 kilometers. The landscape includes numerous small lakes and swamps, complemented by a mixed forest zone that spans roughly 33% of the country.
Climate in Lithuania
Experiencing a humid semi-continental climate, Lithuania encounters chilly winters and temperate, moderately rainy summers. Coastal regions maintain average temperatures just below freezing during winter and around 18 degrees Celsius in the summer. Inland areas witness slightly lower winter temperatures and higher summer temperatures. Rainfall is consistent throughout the year, with coastal areas receiving more precipitation than inland regions.
The Culture of Lithuania
The cultural tapestry of Lithuania interweaves indigenous customs with influences from Nordic, Germanic, and Slavic traditions. Shaped by historical connections with Poland and the transformative shift from Soviet occupation to an independent Baltic state, Lithuanian culture reflects a diverse and rich heritage.
Religions Observed in Lithuania
Roman Catholicism is embraced by nearly 80% of the population, while Evangelical Lutherans and other Protestant denominations constitute around 5%. About 15% of the population either does not affiliate with any religion or adheres to Pagan beliefs.
Languages Spoken in Lithuania
Lithuanian, spoken by approximately 85% of the population, holds the status of the official language in Lithuania. Russian, spoken by around 70% of the people, stands as the second most commonly used language. Polish, Belarusian, and Ukrainian are also spoken, primarily in larger cities. Additionally, Yiddish is frequently used among members of Lithuania’s small remaining Jewish community.
Lithuanian Human Resources at a Glance
Employment Law Protections in Lithuania
The foundations of labor law in Lithuania stem from multiple sources, including the Constitution of the Republic of Lithuania, international agreements of the Republic of Lithuania, the current Labour Code, and collective agreements.
The Constitution guarantees various labor rights, encompassing, but not limited to:
- The right to freely choose an occupation or business.
- The right to adequate, safe, and healthy working conditions.
- The right to fair remuneration for work.
- The right to social security in the event of unemployment.
- The prohibition of forced labor, excluding military service or alternative service, as well as labor performed during war, natural calamities, epidemics, or other urgent circumstances.
- The right to rest, leisure, and annual paid holidays.
- The right to organize a trade union.
Employers are obligated to inform territorial labor exchanges about job vacancies, providing details such as work functions, nature of work, remuneration, qualifications, and other terms and conditions. The territorial labor exchange registers these job listings and publicly announces them for individuals seeking employment.
Employment Contracts in Lithuania
The employment agreement should encompass the following particulars:
- Identifying the parties involved in the employment contract.
- Specifying the employment location.
- Defining the position and job responsibilities.
- Establishing the commencement date.
- Outlining the duration of the employment.
- Stipulating working hours and days per week.
- Detailing the agreed remuneration.
- Describing the method and frequency of payment.
- Noting the entitlement to annual leave.
- Specifying the notice period required for termination.
Lithuania's Contract Terms
The employment contract must not include terms and conditions that are less favorable to the employee than those stipulated by the Labor Code, laws, other regulatory acts, and the collective agreement.
Employment contracts may be established for an indefinite period or for a fixed term in cases of temporary work. Fixed-term contracts are not allowed for permanent work, except when expressly permitted by law or a collective agreement.
The employment contract, along with other documents related to health and safety at work, notices, etc., must be in Lithuanian. If the employee does not understand Lithuanian, it should be provided in another language that they comprehend.
The employer is required to notify the territorial office of the Lithuanian State Social Insurance Fund Board at least one business day before the employment commencement date.
Before commencing employment, the employer must furnish the employee with information regarding the terms of the probation period, termination clauses in the employment contract, overtime pay, work schedule, training, and social security contributions.
Irrespective of the workforce size, employers are obligated to:
- Manage potential risks of violence and harassment.
- Implement a policy for preventing violence and harassment.
- Establish procedures for reporting incidents of violence and harassment.
- Conduct training sessions for employees on the risks and prevention of violence and harassment, raising awareness of their related rights.
- Employers with over 50 employees must mandatorily have a Violence and Harassment Prevention Policy in place.
In cases where an employee’s work involves mobility or outdoor activities with travel, compensation will be at a maximum of 30% higher than the employee’s basic wage rate.
Pre-Employment Checks
In instances where labor laws require educational, vocational qualifications, or adherence to health conditions, the employer is entitled to request documentation from prospective candidates as evidence of their qualifications or health status.
However, employers are prohibited from conducting criminal background checks, except in specific cases where the law explicitly permits such inquiries.
Lithuania's Guidelines Regarding Probation Period/Trial Period
The probationary period is capped at three months, although the employer and employee can mutually decide on a shorter duration. Within this probationary period, the employer holds the right to terminate the employment relationship with a three days’ notice without providing severance pay. However, in such instances, the employer must be able to justify that the employee was unsuitable for the job.
In the case of fixed-term contracts lasting less than six months, the probationary period must be proportionate to the contract’s duration, not exceeding half of the fixed-term contract’s timeframe.
Regulations and Rules Regarding Working Hours in Lithuania
The average weekly working time, inclusive of overtime, is set at 48 hours. The maximum daily working time, encompassing both regular and additional hours, is capped at 12 hours, with a weekly limit of 60 hours. Overtime is restricted to a maximum of 8 hours per day (or 12 hours per week if agreed upon by the employee), and the yearly ceiling for overtime is 180 hours.
As per the Labor Law, the standard working week consists of five days with two designated rest days. In cases where the nature of business operations necessitates it, a six-day working week with one rest day is permissible. The weekly uninterrupted rest period should not be less than 35 hours.
Employees are entitled to a break lasting between 30 minutes to two hours for rest and meals after completing half of the working day. This ensures that they do not work more than four consecutive hours without a break.
Lithuanian Laws Regarding Overtime
Written consent from employees is necessary for overtime work, with remuneration mandated to be at least 1.5 times the regular hourly pay.
Lithuanian Timesheets
Work schedules must be displayed on an information board at least two weeks before their effective date. The actual working hours of employees must be documented using a time sheet template. Employers are responsible for establishing rules for recording working time for employees with flexible schedules.
Retention requirements include storing employment contracts for a minimum of 50 years and payroll records for a period of 10 years following termination.
Rules Regarding Bonus and 13th Month Pay in Lithuania
While the 13th-month salary is not obligatory in Lithuania, it is common practice for most companies to provide it as an annual bonus.
Termination of employees is not uncommon in other sectors as well.
Termination
Besides mutually agreed-upon employment termination, the most prevalent methods for an employer-initiated termination without the employee’s fault include:
- termination due to objective reasons (ordinary dismissal) (‘darbo sutarties nutraukimas darbdavio iniciatyva be darbuotojo kaltės’)
- termination at the employer’s discretion (‘darbo sutarties nutraukimas darbdavio valia’).
The previously mentioned dismissals vary based on the reasons for termination, the notice period, and the level of protection afforded to employees facing dismissal.
The termination of an employment contract must be documented in writing, specifying the legal grounds for termination. An employment contract may be terminated without notice if:
- the employee has been convicted of a crime
- a parent, guardian, healthcare provider, or the school of enrollment of an employee under the age of 16 requests termination
- an employee is unable to perform the work according to a healthcare institution and is not willing to transfer to another position within the same organization
- the employment contract is in violation of the law
The employer is required to notify the State Social Insurance Fund Board (SODRA) of the termination of employment no later than one day after the conclusion of the employment contract.
The subsequent categories of employees are safeguarded from termination:
- pregnant employees
- employees appointed for military service
- employees on maternity, paternity, or parental leave
- employees caring for a child under 3 years old
A fixed-term employment agreement concludes upon the expiration of the agreed-upon term. The ensuing regulations pertain to notice periods and severance payments:
Notice period: If the employment tenure surpasses one year, a notice period of five business days is applicable. If the employment span exceeds three years, the notice period extends to 10 business days.
Severance payment: An equivalent of one average monthly salary is required to be paid if the employment relationship endures for more than two years.
Lithuania's Requirements Regarding Notice Periods
An employer has the authority to terminate an employment contract without attributing any fault to the employee, but only after providing written notification and obtaining the employee’s signature as confirmation. This notification must be delivered one month prior to dismissal (or a two-week notice if the employment relationship is less than a year). For employees with less than five years until the statutory age of old-age pension, these notice periods are doubled. They are tripled for employees raising a child (including adopted children) under the age of 14 or caring for a disabled child under the age of 18.
Throughout the notice period, the employer is obliged to allow the employee paid time off to search for a new job.
In the case of a fixed-term contract, the notice period is five business days if the employment surpasses one year. If the employment extends beyond three years, the notice period increases to 10 business days.
Redundancy/Severance Pay in Lithuania
Severance pay is contingent on the employee’s length of continuous service:
- Less than 12 months: one monthly average wage
- 12–36 months: two monthly average wages
- 36–60 months: three monthly average wages
- 60–120 months: four monthly verage wages
- 120–240 months: five monthly average wages
- Over 240 months: six monthly average wages
In the event of ordinary dismissal, the terminated employee is entitled to severance pay equivalent to two average monthly salaries. If the employment relationship lasted less than a year, the dismissed employee should receive half of their average monthly salary. Furthermore, the dismissed employee may be eligible for severance pay from the State Social Insurance Fund Board (SODRA), with the amount contingent on their seniority.
For termination of the employment contract at the employer’s discretion, the dismissed employee must be compensated with a severance pay of at least six times the average monthly salary.
Fixed Term Contacts for Lithuanian Employees
Fixed-term contracts are permissible for work completed within a specified time frame or for a specific task. There is no set limit on the maximum number of successive renewals or extensions of fixed-term contracts. However, the cumulative duration of consecutive fixed-term contracts with the same employee performing the same job function cannot exceed two years, with contracts separated by two months or less considered consecutive.
For fixed-term contracts involving the same employee but with a different job function, the maximum cumulative duration cannot exceed five years.
Contracts of a fixed term for roles of a permanent nature should not constitute more than 20% of the total employment contracts maintained by the employer. If employment persists beyond the contract end date or the completion of the specific task, the fixed-term contract is considered indefinite.
Employers are obligated to inform employees under fixed-term contracts about available vacancies and ensure they have equal opportunities for permanent employment.
Tax and Social Security Information for Employers in Lithuania
Personal Income Tax in Lithuania
Income Bracket (EUR) | Tax Rate (%) |
---|---|
Not exceeding 101,094 | 20.0 |
> 101,094 | 32.0 |
Social Security in Lithuania
Employees are enrolled in state social insurance, with a designated percentage of their wages deducted monthly as a contribution. The State Social Insurance Fund Board (SODRA) oversees the administration of social security services.
Employer (%) | Employee (%) | Income Ceiling/year (EUR) | |
---|---|---|---|
Social Security | 1.47 (comprising unemployment 1.31%, accidents at work and occupational diseases 0.16%)* | 19.5 (comprising pension 8.72%, health insurance 6.98%, sickness 1.99%, maternity 1.81%) | 101,094 |
Guarantee Fund | 0.16 | – | |
Employment Fund | 0.16 | – |
*The unemployment insurance rate applicable to fixed-term contracts is 2.03%. The comprehensive rate of 0.16% covers accidents at work and occupational disease insurance; however, the actual rate varies based on the employer’s risk profile, ranging from 0.14% to 1.4% across four categories.
*The provided rates offer a general framework, and the actual charged rates may vary.
There is an option to opt for higher contributions, exceeding 3%, either by individuals or their employers. Such expenditures are eligible for personal income tax (PIT) deductions for individuals and corporate income tax (CIT) deductions for employers.
It is the employer’s responsibility to electronically submit and remit social security returns by the 15th day of the subsequent month.
Important Information for Lithuanian Employees
Salary Payment
Salary disbursements must occur at least bi-monthly, unless there is a mutual agreement between the employee and employer to adopt a monthly payment schedule.
Payslip
Employees must receive detailed payslips every month, outlining gross and net salary, the purpose and amount of deductions, and any applicable overtime.
Annual Leave
After completing six consecutive months of service with an employer, employees are entitled to 20 days of paid annual leave. While annual leave can be taken in segments, one part must encompass at least 14 calendar days.
For specific employee categories, the duration of paid annual leave extends to 25 calendar days. This category includes employees under 18 years of age, single parents of a child under 14 (or a disabled child under 16), disabled persons, and others as stipulated by law.
The following groups of employees are empowered to select the timing of their annual leave after six months of uninterrupted employment with the same employer:
- Individuals under 18 years of age.
- Pregnant women and employees solely responsible for raising a child under 14 years of age or a disabled child under 18 years of age.
With the employee’s consent, annual leave can be carried over to the subsequent year of employment. This option is available when the annual leave could not be utilized in the same year due to specific circumstances, such as participating in official or public duties, aiding in relief operations, or special-purpose leave entitlements.
Sick Leave
Employees are eligible for sick pay if they have been under social insurance coverage for a minimum of three months within the last 12 months or at least six months within the last 24 months. During the initial two calendar days of sickness absence, the employer is obligated to pay between 80% and 100% of the employee’s average salary. From the third to the seventh day of absence, the state compensates the employee with 40% of their salary from the social insurance fund. Starting from the eighth day of sickness absence, the state provides the employee with 80% of their salary.
Maternity & Parental Leave
Maternity Leave:
Employees are entitled to 70 days of maternity leave before childbirth and an additional 56 days after. This later extends to 70 days in case of a complicated birth. The government provides payment for maternity leave if the minimum period of social insurance coverage has been fulfilled, typically requiring 12 months of coverage within the last 24 months. Compensation is set at 100% of the previous salary, subject to a statutory cap.
Paternity Leave:
Paternity leave spans 30 calendar days at any time until the child reaches one year of age. The pay during paternity leave is 100% of the salary, subject to a statutory cap. The government compensates for paternity leave if the minimum social insurance coverage period is met, generally requiring 12 months of coverage within the last 24 months.
Caregiver Leave:
Each parent and caregiver, including grandparents or relatives assisting in raising the child, are equally entitled to child care leave until the child turns three. While only one parent or caregiver can take it at a time, it can be taken consecutively in turns. The employee planning to use this leave must provide the employer with written notice at least 14 days in advance.
Adoption Leave:
Employees who have adopted newborns or have been appointed as their guardians are entitled to leave from the day of adoption or establishment of guardianship until the baby is 70 days old.
Nursing Leave:
Breastfeeding women are entitled to a break of at least 30 minutes every three hours to breastfeed. This is in addition to the regular breaks for rest and meals. The breastfeeding breaks can be taken in conjunction with the breaks for rest and meals or at the end of the working day, effectively shortening the working day.
Parental Leave:
Paid leave is granted for:
- Employees raising a child under 12 years old: 1 additional day off every 3 months
- Employees raising 2 children under 12 years old, where one or both children have a disability: 2 additional paid days off every month
Unpaid leave is granted for:
- Employees raising a child under 14 years old: up to 14 calendar days per year
- Employees raising a disabled child under 18 years old: up to 30 calendar days per year
- During maternity leave and parental leave until the child reaches three years of age, as well as at the father’s request: an aggregate duration of 3 months in total between both parents.
Education Leave
Employees are granted three days of educational leave (per examination) to prepare for entrance examinations at colleges and higher educational institutions.
Leave of Absence
Elected representatives of a trade union enjoy a leave of absence lasting up to six working days. The specifics regarding wage compensation are to be outlined in a collective agreement. Employees may also be provided with leave to engage in state or public duties, ensuring that the compensation is not less than the average wage of the organization they represent.
Public Holidays
Lithuania observes a total of 13 public holidays annually.
Benefits to the Employee in Lithuania
Lithuanian Statutory Benefits
Compulsory employee benefits in Lithuania encompass a three-tiered pension system, maternity leave with associated benefits, and employment insurance. Additional employee benefits typically encompass private health insurance, retirement plans, and flexible benefits.
Other Benefits
While not legally mandated in Lithuania, fringe benefits may encompass:
- Private health insurance
- Car benefits
- Mobile phone
- Sport compensation
Rules Regarding Visas and Foreign Workers in Lithuania
General Information
Citizens from EU Member States are not obligated to obtain a work permit or visa. However, individuals outside the EU have various visa options.
To enter and reside in Lithuania, a work permit and visa are necessary. Non-EU citizens apply for a national visa (D). The employer is responsible for initiating the work permit application on behalf of the foreign employee. Before submitting the work permit application, the employer must advertise the vacant position with the Labor Exchange of Lithuania for at least five working days.
For the work permit application, the employee should furnish the employer with documentation verifying qualifications for the job, including past professional experience and education, along with personal identification documents. Once the work permit is granted, the employee can proceed to apply for the national visa (D) with required documents such as the application form, passport, proof of adequate funds, and health insurance. The issuance of a work permit typically takes seven business days, while the processing time for a national D visa is approximately 15 working days.
In the case of certain high-level professional qualifications, non-EU citizens may work in Lithuania without a permit. This authorization is granted by the Migration Department under the Ministry of the Interior. However, a temporary residence permit is required instead of a national visa (D).
Public Holidays Recognized by Lithuania in 2024
Occasion | Date | |
---|---|---|
1 | New Year’s Day | January 1 |
2 | Independence Day | February 16 |
3 | Independence Restoration Day | March 11 |
4 | Easter Sunday | March 31 |
5 | Easter Monday | April 1 |
6 | Labour Day | May 1 |
7 | Mother’s Day | May 5 |
8 | Father’s Day | June 2 |
9 | St. John’s Day | June 24 |
10 | King Mindaugas’ Day | July 6 |
11 | Assumption Day | August 15 |
12 | All Saints’ Day | November 1 |
13 | All Souls’ Day | November 2 |
14 | Christmas Eve | December 24 |
15 | Christmas Day | December 25 |
16 | Second Day of Christmas | December 26 |
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