Lithuania has a well-developed statutory benefits framework built on the Sodra social insurance system. If you’re hiring someone in Lithuania, you’re taking on a defined set of leave entitlements and contribution obligations from day one. The rules around sick pay, parental leave, and the social insurance thresholds that determine benefit rates are detailed enough that getting them wrong is easy for a foreign employer without local expertise. This guide covers every statutory entitlement your Lithuanian employees have, what the market expects beyond the legal minimum, and how to stay compliant without setting up a local entity.
How benefits and leave work in lithuania
Lithuania’s statutory benefits are administered through Sodra, the State Social Insurance Fund Board. Sodra collects contributions from both employers and employees, and pays out benefits directly to employees for sickness, maternity, paternity, and parental leave. Employers handle annual leave and some early sick pay directly.
Understanding where employer obligations end and Sodra’s obligations begin is essential for getting payroll and leave administration right.
Annual leave
Lithuanian employees are entitled to a minimum of 20 working days of paid annual leave per year, assuming a standard five-day working week. Employees on a six-day working week are entitled to 24 working days instead.
Annual leave is paid at the employee’s average wage. Employees accrue leave from their first day of employment, and unused leave generally carries over if it can’t be taken within the calendar year.
Public holidays
Lithuania has 13 paid public holidays per year. Employees who are required to work on a public holiday are entitled to additional compensation or a substitute day off, in line with their employment contract and applicable labour law.
Sick leave
Lithuania’s sick pay system involves a split between employer-paid and Sodra-paid periods. Here’s how the liability breaks down.
Employer-paid days (days 1 and 2)
For the first two days of a sick leave episode, the employer pays between 62.06% and 100% of the employee’s average wages. The exact rate depends on the terms of the employment contract.
Sodra-paid days (day 3 onwards)
From day three onwards, Sodra pays sickness benefit at 62.06% of the employee’s compensated wages. For 2026, the minimum monthly sick benefit is €281.19 and the maximum is €2,998.37 in Q1. The Q2 2026 maximum is expected to increase to €3,120.50 per month.
Caring for a sick family member or child
When an employee is absent to care for a sick family member or child, Sodra pays a benefit at 65.94% of compensated wages from day one. There’s no employer-paid period for this type of absence.
Tax treatment of sick benefits
Sickness benefits paid by Sodra are subject to a 15% income tax rate and 6% health insurance contributions. These are deducted from the benefit before the employee receives it.
Eligibility conditions
To qualify for Sodra sickness benefits, an employee must have at least three months of sickness insurance record within the last 12 months, or at least six months within the last 24 months. Employees who don’t meet this threshold won’t receive Sodra payments, so it’s worth flagging eligibility requirements during onboarding.
Maternity and paternity leave
Lithuania provides separate statutory entitlements for mothers and fathers, both funded by Sodra.
Maternity leave
Maternity leave consists of 70 calendar days before the birth and 56 to 70 calendar days after birth, depending on the circumstances of delivery. The full leave period is state-funded through Sodra.
Paternity leave
Fathers are entitled to 30 calendar days of paternity leave, which can be taken at any point within the first year of the child’s birth. The leave can be split into two separate portions rather than taken all at once. Sodra pays 77.58% of the father’s earnings during this period. To be eligible, the employee must have at least 12 months of social security record within the preceding 24 months.
Parental leave
Either parent can take parental leave for up to two years following the birth or adoption of a child. Sodra pays parental benefits at varying rates depending on the leave period chosen and whether the parent opts for a shorter or longer arrangement. Job protection applies throughout the leave period, meaning the employee has the right to return to the same or an equivalent role.
Parental leave is separate from maternity and paternity leave. The two-year period begins after maternity leave ends.
Supplementary benefits: what employers typically offer
Lithuanian law doesn’t require employers to pay a 13th month salary or any discretionary bonus. Any bonus payments are voluntary and should be clearly documented in the employment contract or internal policy to manage expectations.
Beyond the statutory floor, employers competing for skilled professionals in Lithuania typically offer a combination of the following.
Voluntary health insurance
Employer-paid group health insurance is a standard competitive benefit in Lithuania. Contributions of up to €350 per year per employee are non-taxable. Any employer contribution above €350 annually is subject to income tax and social insurance contributions in the same way as salary.
This threshold makes it important to structure health insurance benefits carefully. Policies priced above the threshold will generate unexpected tax liabilities for employees if not communicated upfront.
Meal allowances
Meal allowances, whether provided as vouchers, loaded cards, or canteen subsidies, are common in the Lithuanian market. They’re a cost-effective way to improve daily compensation without adding to the employee’s taxable salary in full, depending on how they’re structured.
Flexible working
Hybrid and flexible working arrangements have become a baseline expectation in professional and technical roles. Offering documented flexibility, including remote working options and adjustable hours, is one of the more effective tools for attracting candidates in a competitive talent market.
How an EOR manages lithuanian benefits
Managing Lithuanian employment compliantly from abroad means registering with Sodra, calculating and remitting social insurance contributions correctly, tracking leave balances, and staying current with Sodra benefit rates as they’re updated each quarter. For a foreign company without a Lithuanian entity, that’s a significant administrative and compliance burden.
An Employer of Record (EOR) employs your Lithuanian team members on your behalf, taking on the employer obligations under Lithuanian law while you manage the day-to-day work. This means Sodra registration, payroll processing, social insurance contributions, statutory leave administration, and compliance filings are all handled through the EOR.
An EOR also ensures that sick pay is calculated correctly at each stage of a leave episode, that paternity and parental leave eligibility is assessed and documented, and that voluntary benefits like health insurance are structured to stay within the €350 non-taxable threshold.
For companies already operating across multiple countries, using EOR services means Lithuanian employees are managed on the same platform as your wider global team, with consistent processes and reporting.
To see how RemotePass handles Lithuanian benefits and leave administration end to end, book a demo at https://www.remotepass.com/request-demo.
