* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Euro (€)


EET (GMT +3)

Employment Cost


Annual Leave

20 days

In-demand Specialties*
Information And Communication Technology (Ict), Laser Technology, Biotechnology And Pharmaceuticals

The Ultimate Guide to Hiring Employees in Lithuania

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Lithuania

Employing in Lithuania requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Lithuania with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Lithuania quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Lithuania has been recognized as a source of highly trained and skilled laborers. In addition, the country boasts an excellent infrastructure for remote work, including fast internet and pleasant offices.

Lithuanian workers are also highly educated, with a large quantity of them holding university degrees.

The government of Lithuania has been very encouraging of the growth of the remote work industry there.

Lithuania has two main types of employment contracts: fixed-term and open-ended.


Fundamental Aspects of Employment in Lithuania

Employment contracts in Lithuania must be in writing, correspond to the formal requirements stipulated by Lithuanian labor law and include at least the following basic terms of employment:

  • Identification of both parties
  • Date of commencement (and employment duration for temporary contracts)
  • Workplace
  • Job description, duties and responsibilities
  • Basic salary as well as other compensation or benefits
  • Working hours
  • Total number of holidays
  • Notice periods for employment termination

Probationary Period in Lithuania

Probation periods are not legally required, but if offered, commonly last for three months.

Working hours in Lithuania

In Lithuania, employees commonly work eight-hour shifts starting between 8:00 a.m. and 8:30 a.m., and ending between 5:00 p.m. and 5:30 p.m., Monday through Friday. This schedule totals 40 hours per week, inclusive of an unpaid lunch hour.

Overtime in Lithuania

Overtime exceeding the standard 40-hour workweek is compensated according to the employment contract or collective agreement. Employees can work up to 8 overtime hours over seven consecutive days, extendable to 12 hours with written consent. Overtime hours are paid at a rate of 150% of the regular pay rate.

Navigating Key Aspects of Payroll in Lithuania

Lithuania has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in Lithuania

1 January - 31 December is the 12-month accounting period that businesses in Lithuania use for financial and tax reporting purposes.

Payroll Cycle in Lithuania

The payroll cycle in Lithuania is usually monthly , with employees being paid by the 10th of the following month..
5.25 EUR p/h

Minimum Wage in Lithuania

The minimum wage for employees in Lithuania is typically 5.25 EUR per hour, amounting to ~840 EUR per month for a typical 40 hour work week.

Minimum wages and salaries in Lithuania

The minimum wage in Lithuania is 5.25 EUR per hour.

Bonus Payments in Lithuania

In Lithuania, 13th-month payments are not mandated by law, but many employers offer performance-based bonuses as a common practice.

Comprehensive Overview of Employment Taxes in Lithuania

Understanding the tax obligations for both employers and employees is crucial when operating in Lithuania's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Lithuania.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 1.77% on top of the employee salary in Lithuania.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Lithuania, the typical estimation for employee payroll contributions cost is around 19.5%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

In Lithuania, individual income tax rates are either 20% or 32%, calculated at a flat rate.

Tax Rate Income Bracket

Pension in Lithuania

In Lithuania, the pension system comprises both state and private components. The state pension is funded through social security contributions from employees and employers. Eligibility for state pension benefits is based on factors such as age, employment history, and contributions. Additionally, individuals can opt for private pension schemes to supplement their retirement income.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Lithuania tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Lithuania

When it comes to terminating employment in Lithuania, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

The employee must receive written notification detailing their performance shortcomings. Both parties must agree on a two-month performance improvement plan, which, if not fulfilled by the employee, may lead to further action.

Notice Period

After one year of employment, employees are entitled to a one-month notice period, reduced to two months for those employed less than a year. Special considerations apply to:

  • Adoptive parents of children below 14
  • Disabled employees
  • Parents raising disabled children below 18
  • Employees due to retire in two years or less

Severance Pay

Severance packages in Lithuania vary based on employment duration, ranging from one month's wages for workers with a year of employment to six months' wages for those with up to 20 years of service.

Annual Leave Entitlements and Company Policies in Lithuania

The annual leave entitlement in Lithuania is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Lithuania

Lithuania celebrates 15 national holidays. National public holidays include:

Holiday Date

Paid Time Off in Lithuania

Maternity Leave in Lithuania

Paternity Leave in Lithuania

Sick Leave in Lithuania

Bereavement Leave

Parental Leave In Lithuania

Lithuania's Benefits Built Into Playroll

Competitive benefits package in Lithuania

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Lithuania's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Lithuania

Make your benefits package in Lithuania a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Workman's Compensation
  • Background Checks

Statutory benefits for employment in Lithuania

The compulsory social security insurance system consists of the following types of social security contributions:

  • Pension insurance
  • Health insurance
  • Sickness insurance
  • Maternity insurance
  • Unemployment insurance
  • Insurance from accidents at work and occupational diseases.

Playroll allows you to provide localized benefits for employees in Lithuania within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Lithuania create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Lithuania

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Lithuania.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!