LITHUANIA PEO & EOR
Hire in Lithuania without
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DID YOU KNOW
- Lithuania is the world’s largest producer of amber and has a long tradition of amber craftsmanship.
- Joninės (Midsummer / St John’s Day) is one of Lithuania’s most celebrated traditional festivals and combines pagan and Christian rituals.
- Basketball is a national passion – Lithuania has one of the strongest basketball traditions in Europe and consistently performs at a high level in international competitions.
Forget software,
this is expansion
with a human touch
LITHUANIA EOR Services
A Baltic platform for EU access and tech talent
Lithuania offers a highly educated, multilingual workforce, a fast-growing tech ecosystem, and strategic access to EU markets. However, local employment law, payroll reporting, social insurance rules, and labour protections have specific requirements and recent updates that employers must follow.
Partnering with Gibson Watts Global as your Employer of Record (EOR) in Lithuania lets you hire and onboard employees compliantly without establishing a local entity. We manage employment contracts, payroll, statutory social contributions, tax withholding, leave administration, and local compliance so you can focus on business growth.
Working in LITHUANIA
Financial Year Dates
The fiscal year runs from 1 January to 31 December.
Minimum Wage
The national gross minimum monthly wage in 2025 is €1,038.
Standard working hours
The normal full-time working week is 40 hours, typically five 8-hour days.
Overtime
Lithuanian law sets specific overtime rules:
- Standard overtime is normally paid at 1.5 times the regular hourly wage.
- Overtime on rest days or night work is commonly paid at 2 times the regular rate.
- Overtime on public holidays (and holiday nights) is paid at at least 2.5 times the regular rate under 2025 amendments.
- Employers generally may assign overtime only with employee consent (written consent required under recent Labour Code changes), and statutory weekly/annual overtime limits apply (employers should track weekly limits and the annual cap set by law).
Holiday Allowance
Full-time employees working five days per week are entitled to 20 working days of paid annual leave (24 days if working six days per week). Certain groups (young workers, single parents, disabled employees) may have higher entitlements.
Sick Leave
Sick pay and sickness benefits are administered through the state social insurance fund (Sodra). Employers handle short-term sick pay and Sodra provides longer-term sickness benefits subject to eligibility and contribution history. Employers must follow medical certification and reporting requirements.
Maternity & Paternity Leave
Maternity leave: 126 calendar days (approximately 18 weeks), paid via Sodra at 77.58% of the compensated wage (minimum monthly thresholds apply).
Paternity leave: Fathers are entitled to 30 calendar days of paid paternity leave (paid at 77.58% by Sodra), to be used within the statutory timeframe.
Parental/childcare leave: Additional childcare benefit options are available (parents may choose benefit durations and rates up to statutory limits, with options to extend parental leave with reduced rates).
Public Holidays
Lithuania observes the following national public holidays (listed without dates):
- New Year’s Day
- Restoration of the State / State Day (February)
- Restoration of Independence (March)
- Easter Sunday / Easter Monday
- Labour Day
- Mother’s Day
- Father’s Day
- Joninės / St John’s Day (Midsummer)
- Day of the State (King Mindaugas’ Coronation)
- Assumption Day (Žolinė)
- All Saints’ Day
- Christmas Eve (observed)
- Christmas Day and Second Day of Christmas.
Social Contributions
Lithuania’s social insurance system is funded by employee and employer contributions and covers pensions, health insurance, sickness and maternity benefits, unemployment and other benefits.
Employee contributions
- Total social insurance contributions are 19.5% of gross salary for employees on incomes up to the social insurance threshold. This is broken down into pension, health insurance, sickness and maternity components (for example pension ~8.72%, health ~6.98%, sickness ~2.09%, maternity ~1.71%). Above the annual threshold (€126,532 in 2025) some employee social contributions reduce to 6.98% on the excess.
Employer contributions
- Employer social insurance contributions are comparatively low as a percentage and vary by contract type. A common standard rate is around 1.77%, with a range up to 2.49% for certain fixed-term contracts. Employers also pay workplace accident/occupational disease insurance at a rate that depends on the company risk category (roughly 0.14%–1.4%). Employers must report and remit all contributions to Sodra.
Income Tax
Personal income tax in 2025 is applied as follows:
- 20% on employment income up to €126,532 per year.
- 32% on the portion of income that exceeds €126,532 per year.
Tax residents are taxed on worldwide income; non-residents on Lithuania-source income only. Note: for very high incomes different contribution ceilings and rules on social contributions may apply.
Health Care
Lithuania’s public healthcare system is funded via social insurance contributions. Registered employees access state healthcare services; many employers offer additional private health insurance as an employee benefit for faster specialist access.
Visas
EU / EEA / Swiss nationals: freedom of movement – no work permit needed.
Non-EU nationals generally require a residence permit for employment. Common permit examples:
- Work residence permit (for employment): Issued for a specific job and employer; required before starting work.
- EU Blue Card: For highly skilled workers meeting salary and qualification thresholds.
- Seasonal / temporary work permit: For short-term roles in agriculture, hospitality, etc.
- Startup / entrepreneur permit: For founders and investors with a viable business plan.
- Family reunification permit: For dependents of residents / permit holders.
13th salary?
Lithuania does not have a statutory 13th-month salary. Any 13th-month or 14th-month payments are contractual or set by collective agreements and employer policy. For regional practices and global comparisons, see: https://global.gibsonwatts.com/blog/13th-14th-salary-the-complete-guide/
Cultural Information
Lithuanian culture blends Baltic, pagan and Christian traditions. Folk music, dance and strong seasonal rituals (especially around Joninės / Midsummer) remain important. Traditional cuisine includes cepelinai (potato dumplings), kugelis (potato pudding) and šaltibarščiai (cold beetroot soup). Coffee and bakery culture thrive in the cities, while rural communities keep many folk crafts and seasonal festivals alive.
Lithuanians prize hospitality, respect for tradition, and a strong connection to nature – forests, lakes and the Baltic coast are widely enjoyed. Basketball is a national obsession and a major source of pride in international sport.