Remote’s guide to employing in

Lithuania
lithuania flag

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

Services available in this country:
Employer of Record ProductContractor ManagementGlobal Payroll
Skyline in rural Lithuania

Facts & Stats

Lithuania Map Illustration
  • 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 neighbours, 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 Labour 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

Jan
Monday 1 January 20241New Year's Day (Naujųjų metų diena)
Feb
Friday 16 February 20242Day of Restoration of the State of Lithuania (Lietuvos valstybės atkūrimo diena)
Mar
Monday 11 March 20243Day of Restoration of Independence of Lithuania (Lietuvos nepriklausomybės atkūrimo diena)
Sunday 31 March 20244Easter (Velykos)
Apr
Monday 1 April 20245Easter Monday (Velykų pirmadienis)
May
Wednesday 1 May 20246International Workers' Day (Tarptautinė darbuotojų diena)
June
Monday 24 June 20247Saint John's Day (Jono diena)
July
Saturday 6 July 20248Statehood Day (Valstybingumo diena)
Aug
Thursday 15 August 20249Assumption of Mary (Marijos ėmimas)
Nov
Friday 1 November 202410All Saints' Day (Visų Šventųjų diena)
Saturday 2 November 202411All Souls' Day (Visų Šventųjų diena)
Dec
Tuesday 24 December 202412Christmas Eve (Kūčios)
Wednesday 25 December 202413Christmas Day (Kalėdų dieną)
Thursday 26 December 202414Day after Christmas (Diena po Kalėdų)

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 practising “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 fulfil 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 fulfil 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.

Fair Pricing in Lithuania

Employer of Record

Hire and pay your global team

Starting at USD 599/month

for annual plans

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localised benefits

Contractor Management

Compliantly onboard and pay contractors

USD 29

per contractor/month

Start free trial

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localised contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll

USD 50

per employee/month

Top features

  • Reduce costs by centralising payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labour authority reporting handled for you

HRIS

Manage all of your employees in one place

Free
Sign up

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app