Partner with Lerio to keep employment in Lithuania legally sound — contracts, payroll and statutory benefits handled against the live rule set.
Every figure below is modelled, not memorised — and traceable to its source via the calculator on the right.
Employee taxes
withheld from grossEmployee Taxes
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on top of grossEmployer Tax
on top of grossYou can hire in Lithuania through Lerio’s Employer of Record — no local entity required.
Lithuania, part of the European Union and the Eurozone, has become an increasingly attractive destination for global companies due to its skilled workforce, competitive labor costs, and strong digital infrastructure. With a thriving technology sector and growing industries in finance, logistics, and manufacturing, Lithuania offers a strategic gateway to both Western and Eastern European markets.
Expanding into Lithuania requires compliance with local labor laws, tax regulations, and employment standards. Establishing a legal entity can be time-consuming and costly. An Employer of Record (EOR) in Lithuania simplifies this process by acting as the legal employer, managing HR, payroll, and compliance while allowing client companies to directly manage employees’ day-to-day tasks.
Key Benefits of Using an EOR in Lithuania
Faster Market Entry – Hire employees in Lithuania without waiting to set up a local entity.
Legal Compliance – Navigate Lithuania’s labor code, EU directives, and tax obligations with ease.
Cost-Efficient – Avoid expenses tied to company incorporation, accounting, and local HR infrastructure.
Payroll Management – EOR ensures accurate payroll, tax withholdings, and social contributions.
Access to Talent – Gain access to a highly educated, multilingual workforce.
Risk Mitigation – Reduce risks related to employee misclassification or non-compliance with local law.
How EOR Works in Lithuania
An EOR in Lithuania becomes the official employer and is responsible for:
Drafting and maintaining employment contracts compliant with Lithuanian law.
Managing monthly payroll, including income tax (GPM), social security (Sodra), and pension contributions.
Administering statutory benefits such as sick leave, parental leave, and paid time off.
Ensuring compliance with working time regulations, notice periods, and termination laws.
Providing HR support and managing local employment documentation.
Meanwhile, the client company directs the employee’s work, goals, and performance.
Compliance and Employment Regulations in Lithuania
Working Hours: Standard full-time is 40 hours per week (8 hours per day). Overtime is limited and must be compensated.
Minimum Wage (2025): €924 per month gross (~€5.33 per hour for a 40-hour workweek).
Paid Leave: Employees are entitled to at least 20 working days of paid annual leave per year.
Sick Leave: Paid partly by the employer (first 2 days) and partly by the state thereafter.
Public Holidays: 15 paid public holidays per year.
Parental Leave: Up to 2 years of parental leave, with state benefits.
Probation Periods: Typically up to 3 months, extendable in some cases.
Notice Periods: Range from 2 weeks to 3 months depending on service length.
Employer Contributions: Employers must contribute approximately 1.77%–2.49% of gross salary for social security, in addition to employee-paid contributions.
Why Choose an EOR in Lithuania?
Quickly expand into a fast-growing EU economy.
Stay compliant with Lithuanian labor laws, payroll, and taxation.
Hire local talent in tech, finance, and professional services sectors.
Avoid the costs and delays of entity setup.
Focus on your business operations while the EOR manages HR, payroll, and compliance.
An Employer of Record in Lithuania is the most efficient solution for businesses looking to expand into the Baltic region, enabling compliant hiring, reduced risks, and fast access to skilled professionals.
What Lerio handles
Typical timeline
via EORStatutory benefits in Lithuania, plus the supplemental coverage teams usually add.
Mandatory
Commonly added
optionalStatutory / Mandatory Benefits in Lithuania
Lithuanian labor law and social security regulations provide a solid framework for employee protections:
Paid Annual Leave – Minimum 20 working days per year; additional leave may be granted based on age, tenure, or collective agreements.
Public Holidays – 12 national holidays per year.
Working Hours – Standard 40 hours/week, 8 hours/day; overtime must be compensated.
Paid Sick Leave –
First 2 days: unpaid (employer discretion).
From day 3 onward: paid via social insurance system (Sodra) at 62.7–100% of salary, depending on duration and illness type.
Maternity Leave – 126 calendar days paid at 100% of average wage; can be extended for multiple births.
Paternity Leave – 30 calendar days paid for fathers, within 2 months of child’s birth.
Parental Leave – Up to 370 days (shared between parents) with partial pay (based on previous earnings).
Childcare Leave – Unpaid leave possible until the child reaches 3 years, job-protected.
Severance Pay – Mandatory for redundancies: usually 1–3 months’ salary, depending on tenure and legal requirements.
Social Security Contributions – Employers contribute approx. 31.18% of gross salary (pensions, health insurance, unemployment, sickness).
Occupational Health & Safety – Employers must ensure workplace safety, provide medical exams, and follow safety regulations.
Common Employer-Provided Benefits in Lithuania
Employers, especially in IT, finance, and multinational companies, typically offer additional perks:
Private Health Insurance – Top-up coverage beyond the public system, often including family members.
Multisport / Gym Cards – Popular wellness benefit.
Performance Bonuses – Annual or project-based incentives.
Flexible / Remote Work – Hybrid and fully remote arrangements increasingly common.
Professional Development – Training budgets, certifications, and language courses (English, Russian, German).
Meal Vouchers / Subsidies – Prepaid meal cards, office lunches, or vouchers.
Transport / Commuting Allowances – Fuel reimbursement, public transport passes, or parking.
Extra Paid Leave – For birthdays, volunteering, long service, or company-specific events.
Supplementary Pension Plans – Voluntary employer contributions to private pension funds.
Life & Disability Insurance – Often offered for key employees or managerial positions.
Stock Options / Equity Plans – Typically in startups and multinational tech companies.
Employee Discounts & Perks – Corporate partnerships with retailers, gyms, or cultural institutions.
Relocation Support – Housing, travel, and visa assistance for international hires.