Hire in Lithuania
Here’s where you get started with human resources best practices and hiring in Lithuania.
Key Country Facts
Lithuania HR at a Glance
The Constitution lays down a certain number of labour rights, including but not limited to:
- right to freely choose an occupation or business
- right to adequate, safe and healthy working conditions
- right to adequate remuneration for work
- right to social security in the event of unemployment
- prohibition of forced labour, except military service or alternative service, as well as labour which is executed during war, natural calamity, epidemic or other urgent circumstances, or labour performed in places of confinement
- right to rest and leisure as well as to annual paid holidays
- right to organise a trade union
Employers must inform the territorial labour exchanges about their job vacancies, specifying the work functions, nature of work, remuneration, qualifications and other terms and conditions. The territorial labour exchange will register these job listings and make public announcements to people seeking work.
The employment contract must include the below details:
- parties to the employment contract
- location of employment
- position and job description
- start date
- duration of the employment
- working hours/days of week
- method and frequency of payment
- annual leave entitlements
- notice period for termination
The employment contract (including other HR documents e.g. policies) must be in the Lithuanian language or in a language acceptable to the parties.
The employer is responsible for notifying the territorial office of the Lithuanian State Social Insurance Fund Board at least one business day before employment commencement date.
Employers are not permitted to perform criminal background checks, except for specific cases where the law allows for it.
Probation Period / Trial Period
The five-day working week with two rest days is the standard working hours as established by the Labour Law. The six-day working week with one rest day is for businesses where a five-day working week is not possible due to the nature of its operations. A weekly uninterrupted rest period shall not be shorter than 35 hours.
Employees shall be granted a break of 30 min – 2 hours rest and to eat after half of the working day (not more than four working hours).
Employment contract should be stored for at least 50 years and payroll records for 10 years after termination.
The 13th month salary is not mandatory, but most companies pay it as a yearly bonus.
In addition to employment termination by mutual agreement between the parties, the most common ways to terminate employment upon employer’s initiative, when there is no fault of the employee, are:
- dismissal due to objective reasons (ordinary dismissal) (darbo sutarties nutraukimas darbdavio iniciatyva be darbuotojo kaltės)
- dismissal upon the employer’s will (darbo sutarties nutraukimas darbdavio valia).
The aforementioned kinds of dismissal differ with regards to the reasons for dismissal, the notice period and protection the employees have against the dismissal.
Termination of employment contract must be in writing, with the legal basis for termination. An employment contract can be terminated without notice if:
- the employee has been sentenced for a crime committed
- when a parent/guardian/healthcare provider/school of enrolment of an employee under the age of 16 demands the termination
- when an employee is not able to perform the work according to a healthcare institution and is not agreeable to the transfer to another position within the same organisation
- when the employment contract is in conflict with the law
The employer shall inform the State Social Insurance Fund Board (SODRA) on the termination of employment not later than 1 day after the termination of employment contract.
The following categories of employees are protected from termination:
- pregnant employees
- employees who are called up for military service
- employees on maternity/paternity/parental leave
- employees raising a child under 3 years old
A fixed-term employment contract ends when the agreed term expires, however, the following rules on notice period and severance payment apply:
Notice period – If employment lasted for more than a year, notice period of 5 business days applies; if employment lasted longer than 3 years, notice period of 10 business days apply.
Severance payment – 1 average monthly salary should be paid if employment relations lasted for more than 2 years.
During the notice period, the employer must grant the employee paid time off from work to look for a new job.
The notice period for a fixed-term contract if employment lasted for more than a year is 5 business days applies. If employment lasted longer than 3 years, the notice period is 10 business days.
Redundancy / Severance Pay
- under 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 average wages
- 120–240 months — five monthly average wages
- over 240 months — six monthly average wages
Upon ordinary dismissal, the dismissed employee is entitled to a severance pay of 2 average monthly salaries. If the employment relationship lasted less than a year, the dismissed employee has to be paid 1/2 of his/her average monthly salary (see above). Additionally, the dismissed employee may receive a severance pay from the State Social Insurance Fund Board (SODRA), with the amount depending on his/her seniority.
In case of termination of the employment contract upon employer’s will, the dismissed employee has to be paid a severance pay of at least 6 times the average monthly salary.
Fixed Term Contracts
The maximum total duration of consecutive fixed-term contracts concluded with the same employee to carry out a different job function cannot exceed 5 years
Fixed-term contracts for jobs of a permanent nature may not account for >20% of employment contracts entered into by the employer. A fixed-term contract is deemed to be for an indefinite term if employment continues beyond the contract end date or beyond the specific task being completed.
The employer must inform employees working under Fixed-Term Contracts about vacancies and ensure that they have the same opportunities for permanent employment.
Tax and Social Security
Personal Income Tax
|Income Bracket (EUR)||Tax Rate (%)|
|Not exceeding 90,246||20.0|
Employees are covered by State Social Insurance, and a certain percentage of wages will be deducted on a monthly basis as contribution. Social security services is administrated by State Social Insurance Fund Board (SODRA).
|Employer (%)||Employee (%)||Income Ceiling/year (EUR)|
|Social Security||1.77||19.5 (comprising pension 8.72%, health insurance 6.98%, sickness 2.09%, maternity 1.71%)||90,246|
|Accidents at Work||0.14-1.4|
*The above rates serve as a broad guideline. Actual rates charged will differ.
There is an option to pay higher contributions (above 3%) either by individuals themselves or their employers. Such expenses are PIT deductible for individuals and corporate income tax (CIT) deductible for employers.
It is the employer’s responsibility to submit and pay social security returns electronically by the 15th day of the following month.
Salary payment should be made no less than twice a month, unless there is mutual agreement between employee and employer to pay monthly.
For some categories of employees, paid annual leave is 25 calendar days (employees under 18 years of age, employees who are single parents raising a child under 14 or a disabled child under 16, disabled persons and other persons provided for by law).
The following categories of employees are entitled to choose the time of annual leave after six months of uninterrupted work with the employer:
- persons under 18 years of age
- pregnant women and employees raising a child under 14 years of age or a disabled child under 18 years of age alone.
Annual leave can be carried forward to the next year of employment with the consent of the employee, and is allowed when the annual leave could not be utilised in the same year due to e.g. taking part in official/public duties, assisting in relief operations, special-purpose leave entitlements.
Compassionate & Bereavement Leave
- a disabled person — up to 30 calendar days per year
- an employee who alone takes care of a disabled person – up to 30 calendar days per year (or as agreed between the parties)
- an employee taking care of a sick family member — for a period recommended by a health institution
- wedding — at least 3 calendar days
- funeral of a family member — at least 3 but not more than 5 calendar days
Maternity & Parental Leave
Employees receive 70 days’ maternity leave before birth and 56 days’ leave after (if the birth is complicated, it is 70 days). Maternity leave is paid by the state if the minimum period of social insurance coverage has been met (as a general rule, 12 months of insurance coverage during the last 24 months). The compensation is 100 percent of the previous salary, subject to a statutory cap.
Paternity leave is 30 calendar days at any time until the child reaches the age of one year. Paternity pay is 100 percent of the salary for the duration of leave, subject to a statutory cap. Paternity leave is compensated by the state if the minimum period of social insurance coverage has been met (as a general rule, 12 months of insurance coverage during the last 24 months).
Each parent/caregiver (including grandparents or relatives who is helping to raise the child) is equally entitled to take child care leave until the child is three years old. Only one parent/caregiver can take it at a time, but it can be taken in turns consecutively. The employee intending to use this leave must provide the employer with a written notice at least 14 days in advance.
Employees who have adopted newborn babies or who have been appointed as their guardians shall be granted leave for the period from the day of adoption or establishment of guardianship before the baby is 70 days old.
A breastfeeding woman shall be given at least a 30 minute break to breastfeed at least every three hours. This is in addition to the regular break to rest and to eat. The breastfeeding breaks may be taken with the break to rest and eat, or at the end of the working day (effectively shortening the working day).
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 year
- during maternity leave and parental leave until the child reaches three years of age, to the father at their request – aggregate duration of 3 months in total between both parents
Leave of Absence
Benefits to the Employee in Lithuania
Fringe benefits are not a legal requirement, but may include:
- Private health insurance
- Car benefit
- Mobile phone
- Sport compensation
Visas and Foreign Workers
Citizens of EU Member States do not need a work permit or visa. For citizens outside the EU, there are several visa options.
A work permit and a visa is required to enter and stay in Lithuania. The visa for non-EU citizens is referred to as a national visa (D). The employer has to apply for a work permit on behalf of the foreign employee. Prior to submitting the documents for work permit application, the employer should have filed the vacant position with the Labour Exchange of Lithuania for at least 5 working days.
For the work permit, the employee should provide the employer with documentation including proof of qualifications for the job (previous professional experience, education), personal identification documents. Once the work permit is issued, the employee can apply for the national visa (D) with the documents including the application form, passport, proof of sufficient funds/means of income, health insurance. Issuance of a work permit usually takes 7 business days, and processing time for a national D visa is about 15 working days.
For some high-level professional qualifications, a non-EU citizen may work in Lithuania without a permit and this permission will be issued by the Migration Department under the Ministry of the Interior. However, a temporary residence permit in lieu of a national visa (D) is required.
Public Holidays in 2022
|1.||New Year’s Day||1st January|
|2.||Independence Day||16th February|
|3.||Independence Restoration Day||11th April|
|4.||Easter Sunday||17th April|
|5.||Easter Monday||18th April|
|6.||Labour Day||1st May|
|7.||Midsummer Day||24th June|
|8.||King Mindaugas’ Day||6th July|
|9.||Assumption Day||15th August|
|10.||All Saints Day||1st November|
|11.||All Souls Day||2nd November|
|12.||Christmas Eve||24th December|
|13.||Christmas Day||25th December|