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Lithuania

Payroll and Benefits Guide

Last updated:
Dec 8, 2022

Table of contents

Overview Contributions Minimum Wage Payroll Working Hours Leave Termination Common Benefits VISA VAT

Overview

Capital
Vilnius
Currency
Euro (EUR)
Date Format
dd/mm/yyyy
Fiscal Year
1 January- 31 December
Payroll Frequency
Monthly
Employer Taxes
1.77%

Contributions

Employer

Employer Payroll Contributions

1.77% Social Insurance
1.77% Total Employment Cost

Employee

Employee Payroll Contributions

19.50% Social Insurance (up to ceiling of 90,246 EUR)
6.98% Social Insurance (in excess of 90,246 EUR)
19.5%-26.48% Total Employee Cost
19.50% Social Insurance (up to ceiling of 90,246 EUR)
6.98% Social Insurance (in excess of 90,246 EUR)
19.5%-26.48% Total Employee Cost

Employee Income Tax

20.0% up to 90,246 EUR
32.0% Greater than 90,246 EUR

Minimum Wage

General

In Lithuania, the national minimum wage is 730 EUR per month.

 

Payroll

Payroll Cycle

The payroll frequency in Lithuania is typically monthly. An employer must make the payment of salaries by the 10th of the following month.

13th Salary

13th-month payments are not required by law in Lithuania; however, it is common for employers to pay a performance-based bonus.

 

Working Hours

General

The standard working week in Lithuania consists of 40 hours, 8 hours per day.

Overtime

All work above the standard 40 working hours per week is paid as overtime and regulated by the employment contract/collective agreement. An employee can work a maximum of 8 overtime hours over seven consecutive days. If the employee consents in writing, the maximum can rise to 12 hours per seven consecutive days.

All overtime hours are paid at an overtime compensation rate: 150.00% of the employee’s regular pay rate. If the overtime is performed at night between 10.00 pm and 6.00 am, the employee should receive compensation of 200.00%.

Working Week

Monday-Friday

 

Leave

Paid Time Off

The annual leave entitlement in Lithuania is dependent on the employees’ years of service; the standard entitlement is 20 days of paid annual leave. Following the completion of 10 years of service with a single employer, the employee is entitled to an additional three days of paid leave. An additional day’s leave is accrued every five years after that.

Public Holidays

There are 16 public holidays. The day before the public holiday, working hours are reduced by one hour (paid, just one hour shorter is indicated in the timesheet). Public holidays are paid holidays.

Sick Days

In Lithuania, the employer is responsible for paying the first two days of illness at a benefit rate of between 62.06% to 100% at their own discretion and as specified in the employment contract. From the third day of illness, the employee will receive 62.06% of their regular salary figure paid by the National Social Insurance Fund (SODRA). The sick pay is paid only for the working days. Should an employee take incapacity for work absence to care for a patient, they will be entitled to a payment of 65.94% paid directly by SODRA

Maternity Leave

Employees are entitled to 126 days of paid maternity leave which is compensated by the social security if the employee is eligible. The maternity benefit is the equivalent of 77.58% of the employees’ standard rate of pay. The minimum maternity benefit per month cannot be less than 240 EUR

In the case of multiple or complicated births, an additional two weeks of leave is granted.

Paternity Leave

Fathers/parents are entitled to 30 days of paid paternity leave which they must take in the first three months of the child’s birth. If he is eligible, the father will receive the same social security benefits as the mother at 77.58% of their regular earnings.

Parental Leave

Parental leave of up to one year is available to all employees with more than one year service. If the parental leave is taken before the child is one year old, the payment is calculated as 100% of the regular rate of salary. If the parental leave is taken before the child is two years old, the payment is calculated at 70%, and 40% thereafter.

Other Leave

There are no other statutory leave requirements in Lithuania.

 

Termination

Termination Process

Employers can terminate a fix term contract for the following reasons – business, personal or worker’s’ misconduct. It requires notice and a written explanation for the termination. If the reason is misconduct, a warning must be given and the employee gets a chance to explain their actions.

Notice Period

In Lithuania the Standard notice period is 30 days for all employees with a minimum of one years’ service.  For employees with less than 1 year of service, the notice period is two weeks.

Severance Pay

An employee who has 12 months or less of service is entitled to one month’s wage. If an employee has completed 20 years of service, they are entitled to six months of salary.

Probation Period

Probation periods are not mandatory in Lithuania; however, standard practice is a probation period of 3 months.

 

VISA

VISA

Lithuania’s immigration system provides several options for employers of foreign nationals. Lithuania is a member of the European Union (EU) and the Schengen Area. Requirements, processing times, employment eligibility, and benefits for accompanying family members vary by permit type.

Business visitors to Lithuania typically use a local version of the Schengen C Visa, unless they are visa-exempt based on their nationality. The stay under Schengen Visa is limited to 90 days over a period of 180 days, counted cumulatively across the entire Schengen Area.

The main work authorisation categories are the EU Intra-Company Transferee (ICT) Permit, suitable for transfers of managers, specialists, and trainees and issued for up to three years; and the EU Blue Card, ideal for highly skilled local hires and issued for up to three years.​

 

VAT

General

The Standard rate of VAT in Lithuania is 21.00%.

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