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%.
