Hire employees in Lithuania
With Nomad Global Hire PEO / EoR (Employer of Record) services, you can easily hire employees in Lithuania, without having to set up your own entity. No risk and fully compliant with HR support included
What to know about Lithuania
Lithuania has a dynamic digital and startup industry
Employer Tax
Estimated at 2%
Currency
EUR, Euros
Available Employee Benefits
Medical insurance, Meal Vouchers
Employee Tax
Incremental up to 32%
Payroll Frequency
Monthly over 12 payments
Main Universities
Capital
Vilnius
Population
Circa 2.8 Millions
Available Contracts
Fixed Term Contract, Indefinite/Permanent
Lithuania is a small country bursting with trained skilled workers, innovation and investment. Crunchbase identifies 218 organisations worth following int he country (and growing every year), for example Monerchy and Spenfi. You can recruit directly or partner with local recruitment agencies (we can help find the right one), and NOMAD will manage the local employment for your new employees
Payroll, Benefits & Tax in Lithuania
- Average Wage : 900 Euros per Month
- Employer Tax in Lithuania is low, around 1.77%
- This includes Unemployment fund, Social insurance, accidents…
- Employee Tax in Lithuania is incremental up to 32%:
- Income Tax is at a flat rate of 20% for the income up to 81,162 Eruos of annual income
- Income Tax then steps to 32% for the income in excess of 81,163 Euros of annual income
- Overtime in Lithuania has to be paid by law and is limited to 48h a week or 180 hours annually and are to be compensated up to 150% of the standard hourly rate of the employee
- Payroll Frequency in Lithuania is Monthly over 12 months
- Bank holidays: there are 15 national days in 2023 in Lithuania
- Termination can be done for objective grounds in Lithuania, see below
- Maternity Leave in Lithuania is up to 126 days of paid leave The Mother has to take 70 days before the birth date and the other 56 days after the birth of the child. During this time, leave is paid at77.5% by the Social Security Fund.
- Paternity Leave is 15 days or 2 weeks and can be taken any time until the child turns 2 years old. The salary during those 2 weeks will also paid at 100% by the Social Security Fund ZUS
- Sick Leave is covered for all year and there is no maximum number of days that can be taken. The employer will pay around 60% of the salary during the first 3 days then it will be covered by the Social Security
- Statutory Leave is 20 days minimum per year.
- Notice period is depending on the length of service of the employee in the business
The Lithuanian Labour Code is setting the framework for employment in Lithuania. This covers all individual and collective working relationships, Compensation and Benefits, Workers rights as well as Leave (Sick, Parental), employment Termination and Discrimination.
Onboarding and Termination in Lithuania
- Probation period are not mandatory under Lithuanian Labour Law
- Probation period in Lithuania however can be of a maximum of 3 months or 90 days, and therefor cannot be extended
- You can hire through Fixed Term Contracts, Indefinite / Permanent contract or BtoB contracts
- Employment Contracts are drafted in Lithuanian but can also be in English (but then has to be both at the same time)
- Termination is Lithuania is generally a straightforward process if managed with particular care. In order to be compliant, Termination can occur as such:
- By mutual agreement
- By resignation of the employee
- By expiration of contract
- By the employer on grounds of disciplinary dismissal, failure to perform in probation period, reduction of work or end of the activity, failure to perform in work and other objective grounds
- It is always advised to reach a Mutual Agreement to validate a Termination in Lithuania
- The minimum notice period for employers in Lithuania is 2 weeks (for service of less than 12 months), then 1 month. Special conditions apply to parents and other particular personal circumstances.
- The notice period for employees is 20 days
- Severance payments in Lithuania are mandatory and will depend on the reasons for Termination. It can go from 2 month to 6 months salary depending on the length of employment and each circumstances
Fixed Management Fee
We charge a fixed monthly fee depending on the level of the salary of the hired employee
- Local Contract Management
- Payroll Management
- Tax and Compliance
- HR Support
Employee Nomad set up fee
Everything to get you started on Nomad and ensure piece of mind for you and your new hire
- Sign up to the NOMAD Services
- Benefits Setup (if available)
- Tax authority liaisons
- An additional Deposit of 1 full month salary cost will be required
Estimated Employer tax costs
Employer Tax in Lithuania is estimated around 2% (may vary depending on circumstances)
- Pension fund insurance
- Health insurance
- Unemployment insurance
- WFH allowance
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