Lithuania
Make employment in Lithuania easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Lithuania, all in one easy-to-use platform.
- Capital city
Vilnius
- Currency
Euro (€, EUR)
- Languages
Lithuanian
- Population size
2,793,694
- Remote-Owned Local Entity
Facts & Stats
- Capital city
Vilnius
- Currency
Euro (€, EUR)
- Languages
Lithuanian
- Population size
2,793,694
- Ease of doing business
Very easy
- Cost of living index
47.66 (2021)
- Payroll frequency
Monthly
- VAT - standard rate
21%
- GDP - real growth rate
4.3 (2019)
The Republic of Lithuania (Lithuanian: Lietuvos Respublika) is a unitary semi-presidential republic in northeastern Europe bounded by Latvia, Belarus, Poland, and Russia.
Lithuania is filled with natural beauty including over 6,000 lakes. A third of its landmass is covered in lush woodland, home to 19% of the species identified across Europe. Beyond its incredible biodiversity, Lithuania has a passionate adoration for basketball a rich reserve of amber, and some of the fastest, cheapest, and most reliable internet on Earth.
For businesses looking for an Eastern European base, Lithuania holds much potential with an advancing economy, high human development rankings, and a burgeoning tech sector. Lithuania has a low cost of living compared to its Western neighbors, so setting up and running a team here is a relatively affordable option.
Grow your team in Lithuania with Remote
Looking to employ workers in Lithuania? Companies hiring in Lithuania must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Remote can employ your team in Lithuania on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Lithuania team. You can also pay contractors now in Lithuania with Remote.
Risks of misclassification
Lithuania, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Lithuania may lead to fines and penalties for the offending company.
Employing in Lithuania
Employment regulations in Lithuania are spelled out in the Labor Code of 2017 which defines provisions for employee protections and workers’ rights for Lithuania’s workforce of 1.3 million. Employees in Lithuania enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Lithuania.
Onboarding Time
We can help you get a new employee started in Lithuania fast. The minimum onboarding time we need is only 5 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
14 Public holidays
Competitive benefits package in Lithuania
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in Lithuania are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Taxes in Lithuania
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Lithuania.
0.32%
guarantee fund and long-term unemployment fund
1.47 – 3.5 % - social security contributions including unemployment social security (lit. nedarbo socialinis draudimas) and social insurance against accidents at work and occupational diseases (lit. nelaimingų atsitikimų darbe ir profesinių ligų socialinis draudimas)
Types of Leave
Employees are entitled to at least 20 business days of paid annual leave (if working 5 days per week) or at least 24 business days (if working 6 days per week). If the number of working days per week is less or different, the employee must be granted leave of no less than 4 weeks. Leave is calculated in business days.
Employment termination
Termination process
The employee must be notified in writing of their specific shortcomings in performance, the parties must have concluded a performance improvement plan for two months, and the employee must have failed to fulfill the plan.
We advise that the following documents be prepared to complete a termination due to non-performance: termination notice, notice explaining performance shortcomings, and a written performance improvement plan.
Notice period
After completing a year of employment, employees are entitled to one month’s notice period. This is reduced to just two months for workers who have been employed for less than a year.
Special considerations are made for:
adoptive parents of children below 14
disabled employees
parents raising disabled children below 18
employees due to retire in two years or less
The aforementioned category of employees is entitled to three times the standard notice period to help them plan as to any disruption a termination may create in their lives.
Severance pay
Severance packages range from one month’s wages for workers who have been employed for an entire year, to six months’ wages for workers who have worked with their employer for up to 20 years.
Probation periods
There are no provisions for mandatory probation periods in Lithuania, but otherwise, it’s a widespread practice and typically lasts around three months.