Multiplier Logo
Loading Animation Image
Lithuania New 1

How To Hire In Lithuania

Lithuania is an excellent location for companies to expand internationally. The country offers business-friendly regulations and norms, transparent tax policies, an educated workforce, full government support, and vibrant financial plus tech sectors. Currently, Lithuania is 16th of 161 countries on the Forbes list of ‘Best Countries for Business.’

Lithuania comes with an EU-leading infrastructure, innovations, and R&D, along with six free economic zones. The country’s most rapidly growing sectors for business include information technology, client support, transportation, renewable energy, logistics, and the production of bioplastics. 

Lithuania ranks 11th on the World Bank Ease of Doing Business report 2020. The country has been part of the Eurozone since 2015. The country’s per capita income is 87% of the EU average. The Lithuanian labor market has benefited from the country’s economy. The employment rate has increased to 77%, while unemployment has fallen to 6%. 

Learn top ways to hire in Lithuania to experience ease when expanding your business. This guide for hiring employees and understanding the recruitment process in Lithuania will acquaint you with the best practices.

Things to Know Before Hiring in Lithuania

Before hiring employees and initiating recruitment and selection in Lithuania, you must remember a few things. 

Consider the factors enlisted below while hiring employees in Lithuania:

  • Use Lithuania’s local language and local currency: The country’s official language is Lithuanian, and more 3 million people around the world speak the same. It is also an official EU language.
  •  Polish, as well as Russian, are also prevalent. 

As a company, you must use Lithuanian in all official communications, including employment contracts. You can always translate to other languages as you think necessary. You must also provide all salary and benefits-related information in Euros.

  • Explore more than one recruitment strategy: Several international companies engage in work or associations with the State Labor Exchange office for hiring employees. As a company, you may collaborate with any third-party agency, choose to depend on contacts for recruiting, or even advertise on job boards, websites, or via the company’s website.
  • Keep anti-discrimination law in mind: Lithuanian laws prohibit employment and hiring discrimination based on racial origin, gender, nationality, religion, sexual orientation, age, disability, marital status, social strata, belief, or membership in any public or political group. Employers must refrain from asking questions about such categories or considering these characteristics in hiring decisions.
  • Check the Collective Bargaining Agreements (CBAs): Collective Bargaining Agreements (CBAs) are the contracts signed between the employer and a union representing the employees. Check if and how these unions could influence any terms of the employment contracts.
  • Ask for medical checkups: Pre-employment checks are compulsory in Lithuania when hiring someone under 18 years, or when you hire for a position that has occupational risks to employee health, or for shift workers, specifically night shifters.

Employment contract

An employment contract is a written contract wherein an employee undertakes to perform work under employer supervision. Both employees and employers sign such contracts that specify their working-relationship span along with all terms for termination, pay, profile responsibilities, and other headers as per regular norms. 

Employment Types

A contract may stipulate employment as either-

  • Full-time work including remote work
  • Part-time
  • Part-time work as per project needs
  • Apprenticeship contract work


There must be suitable and sufficient grounds for terminating an employee’s service. As an employer, you cannot end an employment contract without a valid reason. 

Notice Period

An employee’s notice period varies depending upon their service. 

  • 3 days if termination is during the probation period
  • 14 days if termination is after less than a year’s service
  • 30 days if termination is after service exceeds one year


Termination without sufficient cause from an employer’s end entails paying severance pay to an employee. Severance pay in Lithuania equals an employee’s salary for a year. 

If an employee has health conditions interfering with fulfilling their job role, an employer can terminate the relationship after paying at least two months’ salary. This is a new change in the labor laws introduced along with provisions for anti-discrimination on health grounds and legality of permanent remote work in light of a health condition.

Employment laws

When planning for the hiring process in Lithuania or the recruitment process in Lithuania, you must know the local employment laws.

  • The contract must be well in place when beginning a working relationship with an employee.
  • Ensure that you comply with all local sensitivities besides drafting in the official language.
  • Inclusiveness in workplaces is highly encouraged per Lithuanian laws; therefore, not discriminating against people with disabilities is an essential aspect of the labor law.

Working hours and breaks

When hiring staff in Lithuania, keep track of the applicable working hours and breaks.

  • Standard working hours range between 8:00 a.m./8:30 a.m. and 5:00 p.m./5:30 p.m. Working days are Monday to Friday, with an unpaid hour for lunch break daily.
  • Work week means a total of 8 hours daily (around 40 hours every week.)
  • Employee’s overtime must not go over 8 hours for seven consecutive days unless the employee gives written consent for working till 12 overtime hours every week.
  • Maximum overtime will not exceed 180 hours yearly unless a longer term is established per the collective agreement.


  • Once you establish a company and hire employees in Lithuania, you must set up a payroll system. 
  • It is acceptable to provide your employees with online payslips via email.
  • Payroll processes may be as under
    1. When a new, separate entity is established in Lithuania
    2. When any legal entity from a foreign country is registered as a taxpayer
    3. Employers must archive employment agreements and payroll sheets for 50 years post-termination.

Minimum wage

  • Employers must set salaries per the minimum wage policy. 
  • Lithuania’s minimum wage is 730 euros every month before paying tax. 


  • Lithuanian employers are not compelled to pay a 13th salary or bonus.
  • However, the norm is for employers to pay employees a performance-oriented premium.
  • Bonuses are paid based on the results of crucial tasks performed the previous calendar year.
  • The bonus payout will be within the limits of funds allocated for remuneration.
  • Bonuses will not exceed 40% of gross salary.

Holidays for employees             

Official public holidays in Lithuania are listed below in order of month of occurrence-

  • 1st January for New Year’s Day
  • 16th February for Independence Restoration Day
  • 11th March for Independence Day or National Day
  • 4th April for Easter Sunday (variable)
  • 5th April for Easter Monday (variable)
  • 1st May for Labour Day
  • 24th June for St. John’s Day
  • 6th July for King Mindaugas’ Coronation Day
  • 15th August for Feast of the Assumption of Mary
  • 1st November for All Saints’ Day
  • 24th December for Christmas Eve
  • 25th December for Christmas Day
  • 26th December for Second Day of Christmas

Other Leaves

Vacation/Annual Leave

  • The annual leaves are categorized into the minimum or extended, or additional.
  • The minimum leave is 20 days (24 days for employees working six days a week). 
  • Employees under 18, or those who are single parents, or are raising a child below 14, or have disabled children under age 16, or are disabled are entitled to 35 days of paid annual leave.
  • Extended leave with pay ranges from 58 days and is granted to specific categories of employees. Such employees engage in work that leads to a higher nervous or emotional, or severe mental strain and professional risk.

Maternity Leave

  • Women are entitled to about 70 days of paid maternity leave pre-childbirth and 56 days post-childbirth. 
  • Employees are entitled to additional 14 calendar days of paid leave for more complicated confinement or multiple births.

Parental Leave

  • Employees are entitled to parental leave until the child is three years old. 
  • Leaves can be granted to the mother, father, one of the grandparents, or other relatives raising a child or even to an employee deemed the child’s guardian.

Paternity Leave

  • Fathers are entitled to thirty days leave as paternity leave.
  • This is granted at a time from the date of the child’s birth till the baby is three months old.

Sick Leave

Employees stand entitled to paid sick leaves for the reasons below-

  • Temporary incapability due to illness or injury
  • To care for sick families and kids
  • Outbreak of infectious disease or an epidemic
  • Treatment in healthcare facilities for orthopedic or prosthetic services
  • Supervision of pre-school/primary school education drives wherein a system for infection limitation has been established
  • Falling ill during maternity or childcare leave. Temporary incapability due to tissue or cell surgery or organ removal for donor purposes.

Social security

  • If you hire employees to manage sole proprietorship, you are liable to make social contributions as an employer.
  • Contributions to social security funds stand due to the employee’s income. 
  • These get paid to the State Social Insurance Fund Board and consist of two taxes –
    1. State social insurance 
    2. Compulsory healthcare insurance 
    3. As of 2021, employee contributions stand withheld from the salary at 19.5%-22.5% rate.
    4. Employer contributions are around 1.77% but might vary by 2.49%.

Additionally, there is a provision for payment of child care and maternity and paternity benefits in Lithuania.


  • The introductory rate for income tax for employment income is 20%, while the highest threshold is 32%. 
  • All Lithuanian companies operating in the country via permanent establishment get taxed on worldwide income.
  • Most companies have to pay corporate tax at the rate of 0% to 15%.
  • Rate of 5% gets applied to small companies and agricultural enterprises, as per law. 
  • Startups with less than ten employees and income below EUR 300,000 must pay 0% corp tax for their first fiscal year
  • A 10% rate applies to interest and the royalty income paid to non-resident entities. 
  • Dividend income is taxed at 5-15%.

As for VAT, the following rates apply –



21 %








The Cost of Hiring an Employee in Lithuania

The recruitment fees in Lithuania vary as per company policies. Below is the list of costs required during the recruitment process in Lithuania. Hiring an employee in the country might seem attractive at the outset, given the minimum wage and inexpensive living costs. Hiring involves a few hidden expenses that might add to indirect costs. Take a look-

  • Advert costs
  • Hours you spend reviewing applicants
  • Payroll cost
  • Taxes
  • Salary and benefits
  • Bonus 
  • Allowances

What Does a Company Need to Hire Employees in Lithuania?

Employers in Lithuania can employ both permanent and part-time employees. To hire new employees in Lithuania, a company must establish its presence and meet all taxation and legal compliances. Employers must fulfill the following requirements to launch a business in Lithuania:

  1. Registration with the authorities
  2. Certificate of Registration
  3. Local bank account
  4. Employment contracts
  5. Tax ID number 

Various Options for Hiring Employees in Lithuania

Once you understand the processes for recruitment in Lithuania, you need to do either of the following-

  1. Join hands with any global EOR service: You may partner with an employer of record (EOR) such as Multiplier for hiring in Lithuania. The latter handles all logistics such as compliance, benefit, compensation, payrolls, and workforce management without you needing to set up an entity directly.
  2. Direct hiring process: If you already have a subsidiary or branch in Lithuania, you can hire an HR department to lead.

The Steps to Hiring in Lithuania

Steps in the recruitment process in Lithuania are as follows:

Step 1- Job advertisements

  • Initiate a hiring process in Lithuania by advertising current openings. 
  • List the minimum requirements for posting and advertising the job across various channels.

Step 2-Check applications

  • Go over all applications to shortlist the ones that match your requirements for the role.

Step 3-Telephonic interview

  • A simple telephonic interaction helps employers understand if a candidate is suitable for further discussion.

Step 4- Schedule interviews

  • The hiring manager and a panel interact with the shortlisted candidates. This helps employers understand all information on potential hires’ interests, experiences, and competencies.

Step 5-Reference checks

  • Employers can cross-verify the references and educational background with the candidate’s written consent.
  • As far as background checks for potential employees are concerned, Lithuanian laws prohibit it unless the job profile needs explicitly the same.
  • Employers cannot request a criminal record check, except for specific cases established by Lithuanian law.

Step 6-Final offer

This is the last step of the hiring process in Lithuania. The HR department drafts the offer letter for the candidate mentioning all the working conditions. The employee accepts the letter before the employment contract formally gets written, and the required processes follow suit.

Let Multiplier be Your EOR Platform in Lithuania

Recruiting, and onboarding employees is time-consuming and effort-taking. You need to start with advertising openings and hire someone while meeting all compliances in Lithuania. This is where you can contact the global PEO-EOR firm, Multiplier.

Experts here will make the recruitment process in Lithuania quick and hassle-free. We offer Saas-based Employer of Record solutions for talent hiring. Moreover, you don’t need to establish a branch or subsidiary in the country at all. Multiplier helps you tackle new markets and work on automated payroll management, too, for completing the hiring process in Lithuania.

Frequently Asked Questions

Employers can conduct reference and educational background checks in Lithuania after taking written consent from the potential candidate/employee. Lithuanian law prohibits employers from processing employees’ criminal data, except in specific cases.

No, there is no such provision for paid leave for bereavement.

The probationary period can last for up to three months.

Need Reliable Help In Obtaining A Work Visa?

Table of Contents

World’s Preferred EOR/PEO Platform for a Global Workforce