Employer of Record in Lithuania

General Information

• Currency: Euro (EUR)
• Employer Taxes: 1.77%-2.49%
• Payroll Frequency: Monthly
• Employee Costs: 19.5%
• Capital: Vilnius
• Fiscal Year: 1 January – 31 December

Main Aspects of the Labour Code

Minimum Wage

General: In Lithuania, the national minimum wage is 924 EUR per month.

Payroll

Payroll Cycle: The payroll frequency in Lithuania is typically monthly, and employers must make the payment of salaries by the 10th of the following month.

13th Salary

In Lithuania, while 13th-month payments are not legally required, it’s common practice for employers to offer performance-based bonuses.

Working Hours

General: The standard working week in Lithuania is 40 hours, with an 8-hour workday. If you need more details about work regulations in Lithuania, feel free to ask!

Overtime: Work beyond the standard 40-hour workweek is classified as overtime and is governed by the employment contract or collective agreement. Employees are allowed to work up to 8 overtime hours within a seven-day period, but this limit can be extended to 12 hours with written consent.

Overtime is compensated at 150% of the employee’s regular pay rate. If the overtime occurs between 10:00 pm and 6:00 am, the compensation increases to 200%.

Leave

Annual Leave (Vacation):

In Lithuania, the annual leave entitlement depends on the employee’s length of service, with the standard allowance being 20 working days of paid leave. At least one portion of this leave must be a minimum of 10 working days. Any unused leave can be carried over to the following year.

After completing 10 years of service with the same employer, an employee gains an additional three days of paid leave. Beyond that, an extra day of leave is earned for every subsequent five years of service.

Public Holidays

Lithuania observes 16 public holidays each year. On the day before a public holiday, working hours are reduced by one hour, which is paid but recorded as a shorter workday on the timesheet. If a public holiday falls on a weekend, it is typically not carried over to a weekday and is lost.

Sick Days

In Lithuania, the employer is responsible for covering the first two days of sick leave, with a benefit rate ranging from 62.06% to 100% of the employee’s regular salary, as determined by the employment contract. Starting from the third day of illness, the National Social Insurance Fund (SODRA) provides sick pay at a rate of 62.06% of the employee’s regular salary.

Sick pay is only provided for working days. If an employee takes leave to care for a sick family member, they are entitled to receive 65.94% of their regular salary, paid directly by SODRA.

Maternity Leave

Employees are entitled to 126 days of paid maternity leave, which is covered by social security if the employee meets the eligibility criteria. The maternity benefit is set at 77.58% of the employee’s standard pay rate.

The minimum maternity benefit per month is guaranteed to be at least 242 EUR, based on the six basic social insurance benefits from the quarter prior to the start of maternity leave. In the case of multiple or complicated births, an additional two weeks of leave is provided.

Paternity Leave

Fathers or parents are entitled to 30 days of paid paternity leave, which must be taken within the first three months after the child’s birth and can be divided into up to two periods. If eligible, the father will receive the same social security benefits as the mother, at 77.58% of their regular earnings.

Parental Leave

Each parent is entitled to a two-month non-transferable period of paid childcare (parental) leave. The remaining portion of parental leave can be shared between the parents based on the family’s needs. This non-transferable leave can be taken either all at once or in separate periods, but it cannot be used simultaneously by both parents.

Parental leave begins after maternity leave and extends until the child is one year old, paid at 77.58% of the employee’s salary. It can be extended until the child turns two, with a payment rate of 54.31% for the first year and 31.02% for the second year. The third year of parental leave is unpaid. This leave is funded by SODRA. In a same-sex couple, the partner of the birth mother is not eligible for parental leave. For adoption, the maximum duration of parental leave is two years.

Mother & Father Childcare Leave

Parents are entitled to additional childcare leave based on their family situation:

• Employees raising one child under 12 years old are eligible for 1 extra day off every three months or an 8-hour reduction in working time over three months.
• Employees raising a disabled child under 18 years old are entitled to 1 additional day off per month or a 2-hour reduction in working time per week.
• Employees raising two children under 12 years old are granted 1 additional day off per month or a 2-hour reduction in working time per week.
• Employees raising two children under 12 years old, with one or both being disabled, receive 2 additional days off per month or a 4-hour reduction in working time per week.
• Employees raising three or more children under 12 years old are entitled to 2 additional days off per month or a 4-hour reduction in working time per week.
• Employees who do not qualify for the above leave but are raising a child under 14 who is enrolled in preschool, primary, or basic education programs are entitled to at least half of the employees’ working days off work per year during the first academic year.

A request for leave must be submitted each time the employee wishes to use it, with birth certificates of the children required for the initial request. Unused leave within the allotted time frame is forfeited.

This additional leave is paid based on the average salary.

Other Leave

Bereavement leave – Employers are required to provide employees with three days of unpaid leave in the event of a family member’s death.

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