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$249/month
$49/month
2% of gross salary / month
Horizons ensures day-to-day guidance to help your business navigate Lithuania labor laws and regulations. Horizons also ensures payroll is processed weekly or fortnightly (the standard periods in Lithuania), and that taxes are withheld as required.
As the Lithuania Employer of Record, Horizons is responsible for employee income tax withholding, payment of payroll taxes to state authorities, and submission of tax returns to the Lithuanian Tax Office.
Partnering with our Lithuania EOR is the quickest and most cost-effective way to enter the Lithuanian market.
Note, an Lithuania Employer of Record is also known as an Lithuania Professional Employer Organization (PEO).
Hire in Lithuania, and pay employees through our platform or app.
Our Lithuania EOR solution is the most affordable on the market.
Fast onboarding in Lithuania, hire in as little as 24 hours.
We draft labor contracts compliant with Lithuanian labor law.
We administer all mandatory benefits and contributions in Lithuania.
It doesn’t stop with Lithuania — we are an international EOR
Employment contracts in Lithuania are usually indefinite-term, and a formal contract of employment is required for all employees. Any contracts should include all the relevant details of employment, such as salary/wage, benefits, terms of termination and severance, and so on. They should also be written in Lithuanian and use the local currency of the Euro.
0 – 3 months
For 0 – 1 year of service: 14 days
For 1+ year of service: 30 days
For 0 – 1 year of service: 14 days’ salary
For 1+ year of service: 30 days’ salary
0 – 3 months
For 0 – 1 year of service: 14 days
For 1+ year of service: 30 days
For 0 – 1 year of service: 14 days’ salary
For 1+ year of service: 30 days’ salary
The standard working week in Lithuania is 40 hours, made up of five eight-hour days.
There are several annual public holidays in Lithuania, and most employees are given the day off work for them. The following are the most commonly celebrated:
Lithuania has a range of national public holidays that are celebrated annually. In 2025 these holidays are:
Date | Holiday name |
---|---|
1 Jan 2025 | New Year’s Day |
16 Feb 2025 | Independence Day/National Day |
11 Mar 2025 | Independence Restoration Day |
20 Apr 2025 | Easter Sunday |
21 Apr 2025 | Easter Monday |
1 May 2025 | Labour Day |
4 May 2025 | Mothers’ Day |
1 Jun 2025 | Fathers’ Day |
24 Jun 2025 | St John’s Day/Day of Dew |
6 Jul 2025 | King Mindaugas’ Coronation Day |
15 Aug 2025 | Feast of the Assumption of Mary |
1 Nov 2025 | All Saints’ Day |
2 Nov 2025 | All Souls’ Day |
24 Dec 2025 | Christmas Eve |
25 Dec 2025 | Christmas Day |
26 Dec 2025 | Second Day of Christmas |
Employees in Lithuania are entitled to four weeks (20 days) of paid vacation leave each year. This leave must be taken in different parts, with a maximum of 14 days taken at a time.
Employees in Lithuania are entitled to paid sick leave from work. The first two days of absence are compensated at a minimum of 80%, covered by their employer. The third to the seventh day must be compensated at a minimum of 40% of normal pay, then the government covers any further absence at a rate of 80% of normal pay.
Employers cannot terminate an employee who is absent due to sickness for 120 days.
Employers in Lithuania are usually required to give employees 70 days of maternity before they give birth and 56 days after they give birth. Employees on maternity leave are compensated by the country’s social security scheme.
It is also possible for employees to take parental, or caregiver leave to raise a child, which is also compensated by the state.
Employees in Lithuania can terminate an employment contract with 14 days of written notice. Employers must provide two months of written notice. Employees terminated when not at fault cause are generally entitled to a severance payment of between one and six months of pay, depending on their length of service.
Probation periods in Lithuania can last for a maximum of three months, and the notice period is three days during this time.
Employees usually need to pay a health insurance contribution of 6% of salary, and a social insurance contribution of 3%.
Employers must pay 27.98% of salaries to social insurance, as well as a health insurance contribution of 3% and a State Guarantee contribution of 0.2%.
Income tax in Lithuania is generally set at 15% or 20%, depending on income level.
Corporate tax in Lithuania is 15% for most companies.
Mandatory health insurance from employers and employees, as well as state funding, cover the public health system, so employers do not need to offer private insurance. Some employers may still choose to offer supplementary private insurance to their employees.
The minimum wage in Lithuania in 2024 is €924 per month for full-time workers.
Minimum Wage Country Comparison Chart | (Per month in USD) |
Switzerland (Geneva) | $4,000 |
Italy | $2,255 |
Australia | $1996 |
Algeria | $156 |
Uzbekistan | $22 |
Building a benefits system for your Lithuanian workforce can be difficult and complicated to navigate if you are not familiar with the country, its customs, and its employment laws. To set it up independently, it can take several weeks and potentially lead to unexpected delays.
Horizons can simplify your Lithuania benefits management. Our Lithuania experts can handle everything for you, helping you focus on a successful expansion operation.
Hire borderless talent with Horizons
With Horizons, you get quick service, transparent pricing, and expert support.
Generally speaking, the terms “Lithuania PEO” and “Lithuania EOR” are used interchangeably.
In most cases, Horizons’ Lithuania EOR can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Lithuania.
It is possible to get a work visa in Lithuania. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Lithuania are limited, however—get started today to secure your employees’ visa spot.