Your quick guide on talent and labor compliance norms in Lithuania
Capital
Vilnius
Currency
Euro
Languages
Lithuanian, Belarusian, Polish, Russian
Payroll Frequency
Monthly
GDP per Capita
$18,366.94
Employer Tax
1.77% - 3.03%
Talent Overview
Lithuania is the largest economy among the three Baltic states (Estonia, Latvia, and Lithuania). The country ranks 11th in the World Bank’s Ease of Doing Business Index and 16th in the Index of Economic Freedom. The educated workforce and thriving Information Technology sector have positioned Lithuania as an attractive investment destination.
Major economic hubs:
Vilnius, Kaunas, Klaipėda, Šiauliai
Skills in demand:
Engineer, Doctor, Driver, Handyman
Local Universities
The top local universities in Lithuania are as follows:
Local: 1
World : 642
Local: 2
World : 1197
Local: 3
World : 1621
Local: 4
World : 1803
Local: 5
World : 2689
Salary Data
Some common jobs in Lithuania with average monthly salary are:
| Job Title | Average Monthly Salary (EUR) | Average Monthly Salary (USD) |
| Financial Manager | 1,946 EUR | 2075 USD |
| General Manager | 1,613 EUR | 1720 USD |
| Business Development Manager | 1,561 EUR | 1664 USD |
| Financial Analyst | 1,184 EUR | 1262 USD |
| Business Analyst | 1,196 EUR | 1275 USD |
| Project Manager | 1,242 EUR | 1324 USD |
Talent Sourcing Tips
CV Market, Renkuosi Lietuva, Work in Lithuania
599,000
The Labour Code of Lithuania governs the rules and regulations for employment in the country. All employers must be aware of the following legislations before hiring and onboarding any employee from the country.
Employment contracts in Lithuania must be published in Lithuanian or any other language(s) acceptable to both parties.
The Lithuanian Labor Code standardises a probation period of three months. However, both parties can agree on shorter probation.
| Date | Holiday | Type |
| 1 Jan | New Year’s Day | National Holiday |
| 16 Feb | Independence Day | National Holiday |
| 11 Mar | Independence Restoration Day | National Holiday |
| 31 Mar | Easter Sunday | National Holiday |
| 1 Apr | Easter Monday | National Holiday |
| 1 May | Labour Day | National Holiday |
| 5 May | Mother’s Day | National Holiday |
| 2 Jun | Father’s Day | National Holiday |
| 24 Jun | St John’s Day | National Holiday |
| 6 Jul | King Mindaugas’ Day | National Holiday |
| 15 Aug | Assumption Day | National Holiday |
| 1 Nov | All Saints’ Day | National Holiday |
| 2 Nov | All Souls’ Day | National Holiday |
| 24 Dec | Christmas Eve | National Holiday |
| 25 Dec | Christmas Day | National Holiday |
| 26 Dec | 2nd Day of Christmas | National Holiday |
| Type of Leave | Time Period | Mandatory |
| Annual/Earned Leave | 20 days for those who work 5 days a week
24 days for those who work 6 days a week |
Yes |
| Sick Leave | No provisions in Lithuania’s Labour Code | Yes |
| Maternity Leave | 126 days | Yes |
Payroll
Payroll Cycle
Lithuania follows a monthly payroll cycle
Minimum Wage
Lithuania has a minimum wage of 840 EUR per month.
Overtime Pay
The legal working hours in Lithuania are eight hours per day and 40 hours per week. The overtime compensation is generally 150% of the regular pay rate; however, the employer must pay 200% if the task is performed between 10 PM and 6 AM on the employee’s rest day.
Bonus
Lithuania does not mandate 13th-month pay.
Taxes
| Category | Tax rate |
| Social security | 1.45% – 2.71%
(2.17% to 3.43% for time limited agreements) |
| Category | Tax rate | |
| Social security | Income under EUR 101,094 | 19.5% |
| Income above EUR 101,094 | 26.48% |
| Income | Tax rate |
| Under EUR 101,094 | 20% |
| Above EUR 101,094 | 32% |
The standard rate of Value Added Tax in Lithuania is 21%.
Offboarding & Termination
Article 57 of Lithuania’s Labour Code demands employers to give written notice to their employers at least a month in advance. The notice can be given two weeks in advance for employees with a tenure of less than a year. The termination notice must include a legal reason behind the step. If an employee is relieved of their services due to misconduct, they must be given a warning and an opportunity to explain their actions.
The notice period in Lithuania is given as per the following table
| Duration of employment | Notice period |
| Less than 1 year | 2 weeks |
| 1 year and more | 30 days |
The severance pay in Lithuania is paid as per the following table:
| Reason for termination | Employee’s tenure | Severance pay |
| On the employee’s initiative for valid reasons | More than one year | 2 months’ salary |
| Less than one year | 1 month’s salary | |
| On the employer’s initiative without the employee’s fault | More than one year | 2 months’ salary |
| Less than one year | 0.5 month’s salary | |
| Business insolvency | 5 to 10 years | 77.58% of monthly salary for one month |
| 10 to 20 years | 77.58% of monthly salary for two months | |
| 20 years or more | 77.58% of monthly salary for three months | |
| Invalid reasons as per the Labour code on the initiative of the employer | 6 months’ pay | |
| Both parties unwilling to extend the contract | More than one year | 1 month’s salary |
| Less than one year | 0.5 month’s salary | |
| Employer bankruptcy | More than one year | 2 months’ salary |
| Less than one year | 0.5 month’s salary | |
| Expiration of a fixed-term contract | 2 years or more | 1 month’s salary |
Visa and Immigration
EU/EEA (European Union/European Economic Area) nationals can work freely in Lithuania. However, they must register for their stay after three months to continue working in the country.
Non-EU/EEA citizens can work in Lithuania only after receiving their work permit. Their employer must apply for the employee’s work permit in the Labor Services in Lithuania with the relevant documents. Work permit holders can stay in the country with their national D visa for a maximum of one year.
