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* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.
Lithuania has been recognized as a source of highly trained and skilled laborers. In addition, the country boasts an excellent infrastructure for remote work, including fast internet and pleasant offices.
Lithuanian workers are also highly educated, with a large quantity of them holding university degrees.
The government of Lithuania has been very encouraging of the growth of the remote work industry there.
Lithuania has two main types of employment contracts: fixed-term and open-ended.
Employment contracts in Lithuania must be in writing, correspond to the formal requirements stipulated by Lithuanian labor law and include at least the following basic terms of employment:
Probation periods are not legally required, but if offered, commonly last for three months.
In Lithuania, employees commonly work eight-hour shifts starting between 8:00 a.m. and 8:30 a.m., and ending between 5:00 p.m. and 5:30 p.m., Monday through Friday. This schedule totals 40 hours per week, inclusive of an unpaid lunch hour.
Overtime exceeding the standard 40-hour workweek is compensated according to the employment contract or collective agreement. Employees can work up to 8 overtime hours over seven consecutive days, extendable to 12 hours with written consent. Overtime hours are paid at a rate of 150% of the regular pay rate.
The minimum wage in Lithuania is 5.25 EUR per hour.
In Lithuania, 13th-month payments are not mandated by law, but many employers offer performance-based bonuses as a common practice.
In Lithuania, individual income tax rates are either 20% or 32%, calculated at a flat rate.
In Lithuania, the pension system comprises both state and private components. The state pension is funded through social security contributions from employees and employers. Eligibility for state pension benefits is based on factors such as age, employment history, and contributions. Additionally, individuals can opt for private pension schemes to supplement their retirement income.
The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Lithuania tailored to your needs.
The employee must receive written notification detailing their performance shortcomings. Both parties must agree on a two-month performance improvement plan, which, if not fulfilled by the employee, may lead to further action.
After one year of employment, employees are entitled to a one-month notice period, reduced to two months for those employed less than a year. Special considerations apply to:
Severance packages in Lithuania vary based on employment duration, ranging from one month's wages for workers with a year of employment to six months' wages for those with up to 20 years of service.
Lithuania celebrates 15 national holidays. National public holidays include:
The compulsory social security insurance system consists of the following types of social security contributions:
Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.
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