Lithuania Employment Guide

Lithuania is on the Baltic Sea coast in Northern Europe, one of the three Baltic States, bordering Latvia, Belarus and Poland. It has ~2.8 million people; its economy focuses on manufacturing, IT, financial services, logistics and agriculture, with Vilnius (the capital) as the political, economic and cultural center. Lithuania’s labor laws require written labor contracts, set a 40-hour standard workweek, and guarantee minimum wages, paid leave and social insurance. Dismissals must follow legal procedures and provide employees with compensation. Its labor relations system is relatively sound, with a stable employment environment and friendliness to foreign-funded enterprises.

Check recruitment costs

Currency

Euro (EUR)

Capital

Vilnius

Official language

Lithuanian

Salary Cycle

Monthly

Our Guide in Lithuania

Browse the following tags to learn all about Lithuania

Lithuania's Minimum Wage Standards

Employers in Lithuania must adhere to a statutory minimum gross monthly wage of €924. This baseline compensation applies to full-time employees and serves as the foundation for calculating various social contributions.

Personal Income Tax Structure

Lithuania implements a progressive Personal Income Tax (PIT) system. For the 2024 tax year, earnings up to €114,162 annually are taxed at 20%, while any income exceeding this threshold is subject to a 32% tax rate. This system aims to balance tax burdens across different income levels.

Employer Social Contribution Costs

Beyond gross salaries, employers typically incur additional costs amounting to approximately 1.77% of employee compensation. These mandatory contributions include:

Unemployment insurance: 1.31%
Guarantee fund contribution: 0.16%
Long-term employment fund: 0.16%
Accident and occupational disease insurance: 0.14%

For precise calculation of total employment costs in Lithuania, consult with SailGlobal's compensation specialists who can provide customized quotations based on your specific circumstances.

Overtime Regulations and Working Hours

Lithuanian labor law mandates premium pay for overtime work, defined as hours exceeding the standard 8-hour day or 40-hour week. The legal framework permits maximum overtime of 48 hours weekly and 180 hours annually, with overtime compensation set at 150% of regular pay rates. The standard workweek typically runs Monday through Friday.

International Comparison: Baltic Region Practices

Compared to neighboring Baltic states, Lithuania's overtime regulations demonstrate a balanced approach. For instance, while Estonia allows more flexible overtime arrangements, Lithuania's clearer caps provide stronger worker protections. Companies expanding across the region should note these jurisdictional differences when designing regional HR policies.

Disclaimer

The information and opinions provided are for reference only and do not constitute legal, tax, or other professional advice. Sailglobal strives to ensure the accuracy and timeliness of the content; however, due to potential changes in industry standards and legal regulations, Sailglobal cannot guarantee that the information is always fully up-to-date or accurate. Please carefully evaluate before making any decisions. Sailglobal shall not be held liable for any direct or indirect losses arising from the use of this content.

Hire easily in Lithuania

Compare employee hiring costs across over 100 countries worldwide, helping you accurately calculate labor costs. Try it now

Cost Calculator

Please select the country/region you wish to recruit from, and the calculation can be done with just a few clicks.