Employer of Record in Lithuania

Top Skills in Lithuania

Lithuania benefits from its position as Europe’s geographical centre. It is rapidly disproving the stereotype of a growing market and establishing itself as a significant global exporter of high-value goods. The following industries are actively recruiting in Lithuania:

  • Petroleum refining
  • Food processing
  • Energy sources
  • Chemicals
  • Furniture
  • Products made of wood
  • Textiles and apparel

Wages

Employees from the Baltic nations are well-qualified to work in a variety of industries and in a variety of professions. IT specialists, engineers, transportation specialists, and customer support professions are all common. In recent years, we’ve observed an increase in the average salary paid to members of these nation states.

Date of salary payment

Salaries are paid monthly and must be received by the tenth day of the following month.

Salary

In Lithuania, the minimum pay for a full-time employment is 642 euro per month.

Bonus

Although a 13th-month wage payment is not required by law, it is common for certain employers to provide it as a bonus.

Social security system

In Lithuania, the social security system (SODRA) provides coverage for healthcare, pensions, and other mandatory benefits such as sick pay and maternity leave. Contributions should be deducted from an employee’s salary on a monthly basis:

Pension

The mandatory pension contribution is 8.72 percent of an employee’s pay and is deducted monthly as part of the employee’s social security contributions. Employees may elect to engage in an optional pension accumulation scheme in addition to the statutory amount. Additionally, this amount will be deducted from an employee’s monthly salary at the rate selected by the employee.

Probation Period

In Lithuania, the normal probationary time is three months, however it might be shorter. The employer may also extend the duration if deemed necessary.

Working hours

A full-time job is defined as eight hours per day, 40 hours per week.

Overtime

Overtime is often compensated at a rate of 150 percent of the regular hourly rate. If overtime is required between the hours of 10 p.m. and 6 a.m., the overtime hours shall be paid at a rate of 200 percent of the employee’s regular hourly rate.

Termination

Lithuanian labor regulations governing termination are complicated and are decided by the grounds for termination. Contracts can be canceled mutually or by either the employer or employee.

Risks

Numerous talented people are fleeing the country in search of work overseas. Lithuania’s skills shortage continues to be severe, posing a major impediment to the country’s prosperity. While Lithuanian businesses have gradually embraced the benefits presented by various digital technologies, their progress has been slower than in past years.

How to hire employees in Lithuania?

Employer of Record (EOR) – is an intermediary between the employee and company. In other words, you can hire your talents through a country EOR agent and run your business as usual.

  • Employee onboardings
  • Local agreement drafting and approval
  • Payroll setup and calculation
  • Wages payment and payslips providing
  • Benefits compensation and expenses reimbursement
  • Tax filing
  • Legal consultancy

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Acvian

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Employer of Record Services in 118 Countries