Don’t risk non-compliance with local employment, social insurance, and tax regulations.
Lithuania’s skilled workforce and digital economy attract firms, but its labor regulations can be tricky. Omnipresent acts as your Employer of Record (EOR), handling compliance with VMI rules without a local presence.
We streamline payroll, taxes, and benefits like 20 days of leave, so you can manage teams in Vilnius or Kaunas with ease. Our platform provides a tailored approach to Lithuania’s dynamic market.
Employer costs include Social Security - Unemployment, Long-term Employment Fund Contribution, and a Guarantee Fund Contribution. Use the OmniCalculator to estimate costs, or contact us for further information.
20% flat rate.
Working hours are 8 hours per day and 40 hours per week. Overtime is capped and compensated.
Please note that the below information covers national holidays and should be used for informative purposes only and not as a guarantee for payroll purposes. While we strive to offer you accurate information, public holidays are subject to frequent changes and can be dependent on regional differences. Should you need more detailed information on public holidays, please consult the government pages of the state and/or the local municipality of your employee.
Sickness benefits for the first 2 days paid by the employer, which cannot be less than 62.06% or more than 100% of the employee's average earnings. Sickness benefits from the third day onwards paid by the government at 62.06% of the employee's earnings. Sick leave is usually paid for maximum 122 successive days and maximum 153 days total within a 12 month period.
If an employee exceeds the sick leave thresholds, the employment contract is subject to termination with notice.
Maternity: Lithuania has strong paid maternity leave regulations including 70 days before birth and 56 days after birth of paid maternity leave, totalling 18 weeks.
Paternity: Paternity leave laws call for partially-paid paternity leave for 30 days after birth until the child reaches the age of 1 year or 1 month after the adoption of the child. From 2023, paternity leave may be divided into two parts.
Government-paid Childcare Leave: Lithuania offers parental leave until the child is 3 years old.
Employees in Lithuania receive a minimum of four working weeks paid leave for a five-day week and five working weeks paid leave for a six-day week.
Severance is provided by law and amounts to the following:
2 months salary for less than 12 months of service
5-6 months salary for more than 12 months of service
In case of unfair dismissal, the employer is liable to pay further 6 months salary as additional severance.
Termination is difficult in Lithuania. Strict procedures must be followed and reasons for termination are set out in the Labour Code.
The benefits of growing a global team and finding the best talent anywhere in the world are endless. It’s important to note that labour laws and regulations in Lithuania are strict with penalties for non-compliance. Let our team take care of the global employment solutions such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. We are here to help you every step of the way.
*The above costs are for our monthly management fee. The total cost of employment in a country will be determined by social contributions required by the local government and costs of benefits. In most countries where we operate, we offer employee benefit plans (such as healthcare) that are billed to the customer. Because Omnipresent is able to benefit from large group plans, we are able to offer competitive rates on more comprehensive coverage for your employees. Pricing is reflective of countries where we operate our own entities, which covers 95% of our customer employees' hiring markets.
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