Table of Contents


Table of Contents


Euro (EUR)

Payroll Frequency


Employer Taxes

1.77% to 2.49%

About Lithuania

Have you ever walked into a house and instantly recalled its scent? Scientists have found that certain scents can be linked with specific memories, and each time an individual is exposed to this scent, it acts as a memory trigger. Have you ever associated a smell with a whole country? Lithuania’s scent is known as “The Scent of Lithuania.” Lithuania is the first country to have its designated scent meant to capture the essence of the country and its history. The scent comprises notes of sandalwood, ginger, raspberry, musk, wildflowers, and more.

Employment Relationship

• Permanent Employment

Lithuania's Labour Code does not define permanent employment, but employees with an indefinite employment term (open-ended employment contract) are considered permanent. These employees are hired for jobs of a permanent nature. The law allows hiring fixed-term employees for jobs of a permanent nature, but they cannot comprise more than 20% of the total workforce. 

• Fixed-Term or Specific-Purpose Contracts

The maximum term for a fixed-term contract with the same employer in the same role is 2 years, including renewals, unless it is to fill a temporarily vacant position. If the agreement is extended beyond 2 years without the employee being temporarily absent, it is deemed as being for an indefinite term. When the employee is employed in different functions, the total term for fixed-term contracts is 5 years. If an employment relationship under a fixed-term employment contract continues for more than 1 year, the employer must give the employee written notice of at least 5 days upon expiry of its term or a written notice of 10 days if it continues for more than 3 years. 

• Temporary Employment Contratcs

The Labour Code of Lithuania allows employers to hire temporary employees through temporary employment agencies. Temporary agency workers work under the supervision of the hiring employer but are paid by the temporary agency. This contract can be for a fixed term or an indefinite period. The user enterprise must ensure that the temporary worker is subject to the same provisions of the laws, collective agreements, and other labor law provisions that are applied at the workplace and are valid for the user enterprise's employees. Temporary employees can also be employed in the absence of a permanent employee. The contract for temporary employment must include the type of temporary work, the amount of remuneration to be given to the employee, and working time rates.

Probationary Period

In Lithuania, the Labour Code states that employment contracts can include a probationary period where the employee and the employer agree. The probationary period cannot last more than 3 months. The contract can be terminated during this period by providing a 3-day notice but no severance pay.

Working Hours

An employee's working hours are fixed under their employment contract. Usually, working hours total 40 hours per week. An employee's average working hours cannot exceed 48 hours a week. Working time, including overtime and work done according to an agreement on additional work, may not exceed 12 hours per workday/shift and 60 hours over 7 days. The working time of employees working the night shift cannot exceed eight hours per shift.  Working remotely is done at the employee's request or through mutual agreement between employee and employer. An employee's refusal to work remotely is not a legal reason to terminate the employment contract or change the working conditions.  Responsibility falls on the employer to prove remote work is incongruent with production or the type of work the organization performs and would result in excessive costs.

Holidays / PTO

• Statutory Holidays

New Year’s Day (January 1), Day of restoration of the state of Lithuania (February 16), Day of the restoration of Lithuania’s independence (March 11), Christian Easter (date may vary), International Labor Day (May 1), Mother’s Day (date may vary), Father’s Day (date may vary), Day of Death and Jonah (June 24), Day of the State (July 6), Herbaceous (August 15), All Saints Day (November 1), Christmas Eve (December 24), Christmas Day (December 25 and 26).

• Paid Annual Leave

Lithuania's Labour Code provides employees working 5 days a week an annual leave of 20 working days and employees working 6 days a week an annual leave of 24 working days. Annual leave must be granted at least once per year. For the first year of work, employees are entitled to full leave after working for at least half of the number of working days in the year. During annual leave, employees are paid their average remuneration.  A part of the annual leave can be transferred to the next year at the employee's request, provided they have taken an annual leave of at least 10 days in the current year. This leave is to be used within 3 years of the entitlement.  

• Sick Leave

Sickness benefits are covered under the Law on Sickness and Maternity Social Insurance for insured employees who have paid contributions for at least 3 months in the last 6 months. If an employee becomes sick and is temporarily unable to work, the employer pays the first 2 days of sickness at 80-100% of the employee's average salary. From the third day, sickness benefits are paid by the State Social Insurance Fund at 80% of the employee's average salary for a maximum of 90 days in a calendar year. Sickness benefits are also paid at the rate of 85% of the employee's average salary for up to 7 days to employees taking care of a sick family member, or for up to 14 days to employees taking care of a sick child under 14 years of age.

• Maternity Leave

Lithuania's labor law mandates maternity leave of 70 days before and 56 days after the delivery. In case of complications in delivery or multiple births, the leave is extended to 70 days after the childbirth. If the employee does not take maternity leave, the employer must give 14 days of leave immediately after birth, regardless of whether the employee requests it.  The State Social Insurance Fund pays maternity benefits. To be eligible for the benefit, the employee must have a record of social security payments for at least 12 of the previous 24 months under the sickness and maternity social insurance scheme. Maternity benefit is paid for 70 calendar days prior to the birth of the child up until 56 days after the birth. In the event of birth complications or multiple births, an allowance is paid for an extra 14 calendar days. Maternity benefit is equal to 77.58% of the compensated recipient’s wage. The minimal maternity benefit can be no smaller than EUR 294 per month. The maternity benefit is paid at once for the 126 calendar days (except specific cases).

• Paternity Leave

In Lithuania, the father of a newborn is entitled to an uninterrupted period of 30 days-long paternity leave. Men can go on such leave anytime until the baby turns 3 months (or 6 months of birth in case of complications or multiple births). The benefits are paid if the father has a record of social security payments for at least 12 of the previous 24 months until the first day of the paternity leave. Paternity benefits are paid to the father until a child is 1 month old. The paternity benefit equals 77.58% of the compensated recipient’s wage. The paternity benefit can be no less than EUR 294 (Euros) (before taxes). The maximum paternity benefit is EUR 2,929.11 (before taxes). If a father receives any additional income during the paternity leave, they will receive the difference between the paternity allowance and your income.

Termination of Employment

• Notice Period

Notice period requirements vary as follows: No notice period is required when the contract is terminated due to disciplinary issues. A notice period of 1 month is generally required when an employee who has served the employer for more than 1 year is dismissed due to no fault of their own, such as when there are organizational changes or work changes. No notice period is required when the contract is terminated due to reasons beyond the employee and employer's control. An employee can terminate their employment contract by giving a notice of at least 5 days in case of a valid reason and 20 days in case of no valid reason.

• Severance Benefits

Per Lithuanian labor law, employees are eligible for severance pay from their employer as follows: If an employee resigns due to their employer's fault (salary not paid on time for 2 or more consecutive months, or the employee being idle for more than 45 days) or because of illness, disability, or to take care of a family member, the severance pay is 2 times the employee's average monthly remuneration, provided the employee had worked for more than a year. Employees who have worked for less than a year are eligible to receive 1 month's salary as severance.  Employers are also allowed to terminate employment contracts at will by giving a notice period of 3 days to their employees and a severance pay equal to 6 times their monthly remuneration.  Fixed-term employees who have worked for more than 2 years with the same employer are entitled to severance pay in the amount of 1 month's remuneration upon their contract's termination.  Employees whose contract is terminated during probation are not entitled to severance benefits. Employees terminated for gross violation of their duties are also not entitled to receive severance benefits.