Lithuania

Lithuania, a dynamic Baltic nation, offers a strategic location within the European Union, a skilled multilingual workforce, and a business-friendly environment. With competitive labor costs and a transparent legal framework, it's an attractive destination for companies aiming to expand in Europe. However, understanding local employment laws, tax obligations, and payroll practices is crucial for compliance and successful operations.
Contractor Management
EOR
Payroll
Contractor of Record
Currency
Euro (EUR)
Payroll Frequency
Monthly
Employer Taxes
1.77% - 2.49%

Overview

Population
~2.7 million
Language
Lithuanian
Capital
Vilnius
Currency
Euro (EUR)
Country code
+370
Min wage
1,038 EUR/month
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
40 hours

Payroll

Salaried Employees
Time-Based Employees

Monthly

13th Salary

Not mandatory; subject to employer discretion

Avg employer tax

1.77% - 2.49%

Tax Breakdown

Employer Contributions

Social Security Contributions
1.77% of gross salary (standard rate); not capped

Employee Contributions

Social Security Contributions

19.5% on income up to €126,532/year.

6.98% on income exceeding €126,532/year.

Personal Income Tax (PIT)

20%
on annual income up to €126,532
32%
on annual income exceeding €126,532

Corporate Income Tax:

Standard Rate
16% (increased from 15% as of January 1, 2025)
Reduced Rate
6% for small enterprises with fewer than 10 employees and annual revenue not exceeding €300,000

VAT

VAT

21%

Tax Calculation for Lithuania
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
LT
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Lithuania typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the State Social Insurance Fund Board (Sodra) before the commencement of work

Payroll Setup

  • Ensure accurate calculation and withholding of taxes and social contributions
  • Provide payslips detailing earnings and deductions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Lithuania
When drafting an employment contract for employees in Lithuania, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • First 2 days: Paid by the employer at a rate between 62.06% and 100% of the employee's average salary
  • From day 3 onwards: Paid by the State Social Insurance Fund Board at 62.06% of the employee's average salary

Maternity leave
  • 126 calendar days: 70 days before and 56 days after childbirth
  • Paid at 77.58% of the recipient's compensated income, funded by the state
Paternity leave
  • 30 calendar days within the first 3 months after the child's birth
  • Paid at 77.58% of the recipient's compensated income, funded by the state

Parental Leave:

  • Up to 2 years until the child reaches 2 years of age
  • Can be shared between parents
  • Paid at varying rates depending on the chosen leave duration and income

Annual Leave
  • Minimum of 20 working days per year
  • Additional leave may be granted based on collective agreements or company policies
16 Public holidays in Lithuania

Note: Employees are entitled to paid leave on public holidays. If required to work, compensatory time off or additional pay is mandated.

1st
New Year's Day
16th
Restoration of the State Day
11th
Independence Restoration Day
20th
Easter
21st
Easter
1st
Labor Day
4th
Mother's Day
1st
Father's Day
24th
St. John's Day
6th
King Mindaugas' Coronation Day
15th
Assumption Day
1st
All Saints' Day
2nd
All Souls' Day
24th
Christmas Eve
25th
Christmas Day
25th
Second Day of Christmas
  • 1 Jan: New Year's Day
  • 16 Feb: Independence Restoration Day
  • 11 Mar: Independence Day/National Day
  • 4 April: Easter Sunday
  • 5 April: Easter Monday
  • 1 May: Labour Day
  • 24 June: St John's Day/Day of Dew
  • 6 Jul: King Mindaugas’ Coronation Day
  • 15 Aug: Feast of the Assumption of Mary
  • 1 Nov: All Saints' Day
  • 2 Nov: All Souls' Day
  • 24 Dec: Christmas Eve
  • 25 Dec: Christmas Day
  • 26 Dec: Second Day of Christmas

Termination Process

Permissible Grounds

  • Mutual agreement
  • Redundancy
  • Misconduct
  • Performance issues

Notice Period

  • Employee-initiated termination: 20 calendar days
  • Employer-initiated termination:
    • 1 month for employees with less than 1 year of service
    • 2 months for employees with more than 1 year of service
    • Shorter notice periods may apply during probation

Severance Pay

  • Varies based on tenure and reason for termination
  • For redundancy:
    • Less than 1 year: 0.5 month's salary
    • 1–3 years: 1 month's salary
    • 3–5 years: 2 months' salary
    • 5–10 years: 3 months' salary
    • 10–20 years: 4 months' salary
    • Over 20 years: 6 months' salary

Probation Period

Up to 3 months, during which either party can terminate the contract with a 3-day notice

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in Lithuania
with RemotePass

Lithuania offers a strategic gateway to the European market, with a skilled workforce and favorable business conditions. RemotePass simplifies the process of hiring and managing employees in Lithuania, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Lithuania.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

Free 7-day trial

No credit card required

Cancel anytime

Let’s Chat

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Lithuania

Lithuania, a dynamic Baltic nation, offers a strategic location within the European Union, a skilled multilingual workforce, and a business-friendly environment. With competitive labor costs and a transparent legal framework, it's an attractive destination for companies aiming to expand in Europe. However, understanding local employment laws, tax obligations, and payroll practices is crucial for compliance and successful operations.
Contractor Management
EOR
Payroll
Contractor of Record
العملة
Euro (EUR)
تردد الرواتب
Monthly
ضرائب أصحاب العمل
1.77% - 2.49%

نظرة عامة

التركيبة السكانية
~2.7 million
اللغة
Lithuanian
العاصمة
Vilnius
العملة
Euro (EUR)
رمز الاتصال الدولي
+370
الحد الأدنى للأجور
1,038 EUR/month
ساعات العمل
8 hours per day
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
40 hours

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني

Monthly

13th Salary

Not mandatory; subject to employer discretion

متوسط ​​ضريبة صاحب العمل

1.77% - 2.49%

تحصيل الضرائب

Employer Contributions

Social Security Contributions
1.77% of gross salary (standard rate); not capped

Employee Contributions

Social Security Contributions

19.5% on income up to €126,532/year.

6.98% on income exceeding €126,532/year.

Personal Income Tax (PIT)

20%
on annual income up to €126,532
32%
on annual income exceeding €126,532

Corporate Income Tax:

Standard Rate
16% (increased from 15% as of January 1, 2025)
Reduced Rate
6% for small enterprises with fewer than 10 employees and annual revenue not exceeding €300,000

ضريبة القيمة المضافة

ضريبة القيمة المضافة

21%

حساب الضريبة في Lithuania
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
LT
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في Lithuania عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the State Social Insurance Fund Board (Sodra) before the commencement of work

Payroll Setup

  • Ensure accurate calculation and withholding of taxes and social contributions
  • Provide payslips detailing earnings and deductions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في Lithuania
عند إعداد عقد عمل للموظفين في Lithuania يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • First 2 days: Paid by the employer at a rate between 62.06% and 100% of the employee's average salary
  • From day 3 onwards: Paid by the State Social Insurance Fund Board at 62.06% of the employee's average salary

إجازة الأمومة
  • 126 calendar days: 70 days before and 56 days after childbirth
  • Paid at 77.58% of the recipient's compensated income, funded by the state
إجازة الأبوة
  • 30 calendar days within the first 3 months after the child's birth
  • Paid at 77.58% of the recipient's compensated income, funded by the state

Parental Leave:

  • Up to 2 years until the child reaches 2 years of age
  • Can be shared between parents
  • Paid at varying rates depending on the chosen leave duration and income

Annual Leave
  • Minimum of 20 working days per year
  • Additional leave may be granted based on collective agreements or company policies
16 عطلات رسمية في Lithuania

Note: Employees are entitled to paid leave on public holidays. If required to work, compensatory time off or additional pay is mandated.

1st
New Year's Day
16th
Restoration of the State Day
11th
Independence Restoration Day
20th
Easter
21st
Easter
1st
Labor Day
4th
Mother's Day
1st
Father's Day
24th
St. John's Day
6th
King Mindaugas' Coronation Day
15th
Assumption Day
1st
All Saints' Day
2nd
All Souls' Day
24th
Christmas Eve
25th
Christmas Day
25th
Second Day of Christmas
  • 1 Jan: New Year's Day
  • 16 Feb: Independence Restoration Day
  • 11 Mar: Independence Day/National Day
  • 4 April: Easter Sunday
  • 5 April: Easter Monday
  • 1 May: Labour Day
  • 24 June: St John's Day/Day of Dew
  • 6 Jul: King Mindaugas’ Coronation Day
  • 15 Aug: Feast of the Assumption of Mary
  • 1 Nov: All Saints' Day
  • 2 Nov: All Souls' Day
  • 24 Dec: Christmas Eve
  • 25 Dec: Christmas Day
  • 26 Dec: Second Day of Christmas

عملية إنهاء العقود

Permissible Grounds

  • Mutual agreement
  • Redundancy
  • Misconduct
  • Performance issues

Notice Period

  • Employee-initiated termination: 20 calendar days
  • Employer-initiated termination:
    • 1 month for employees with less than 1 year of service
    • 2 months for employees with more than 1 year of service
    • Shorter notice periods may apply during probation

Severance Pay

  • Varies based on tenure and reason for termination
  • For redundancy:
    • Less than 1 year: 0.5 month's salary
    • 1–3 years: 1 month's salary
    • 3–5 years: 2 months' salary
    • 5–10 years: 3 months' salary
    • 10–20 years: 4 months' salary
    • Over 20 years: 6 months' salary

Probation Period

Up to 3 months, during which either party can terminate the contract with a 3-day notice

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

نمِّ فريقك في Lithuania
مع ريموت باس

Lithuania offers a strategic gateway to the European market, with a skilled workforce and favorable business conditions. RemotePass simplifies the process of hiring and managing employees in Lithuania, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك Lithuania.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

لا حاجة لبطاقة ائتمان

يمكنك الإلغاء في أي وقت

دعنا نَدْرُدْش

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.