Country Payroll Guide Lithuania
We deliver secure, compliant, accurate and touchless global payroll for Lithuania.
Key Facts
- Capital
- Vilnius
- Date format
- yyyy/mm/dd
- Currency
- Euro (EUR)
- VAT
- the standard rate is 21%
Contributions
Employers
- Open-ended Contract
- Open-ended Contract - 1.77%
- Fixed-term Contract
- Fixed-term Contract - 2.49%
- Total Employment Cost
- Total Employment Cost - 0% to 2.49%
Employees
- State Social Insurance
- State Social Insurance - 12.5%
- Health Insurance
- Health Insurance - 6.98%
- Pension (employee choice)
- Pension (employee choice) - 0% to 3%
- Total Employee Cost
- Total Employee Cost - 0% to 22.5%
Minimum Wage
- Minimum Wage
- The minimum wage in Lithuania is 642 EUR per month.
Payroll
- Payroll Cycle
- Monthly
- 13th Salary
Not required by law.
Income Tax
- Employee Income Tax (1)
- Less than 81,162 EUR - 20%
- Employee Income Tax (2)
- Over 81,162 EUR - 32%
Working Hours
- General Working Hours
40 hours per week.
- Overtime
Overtime should not exceed 8 hours over 7 consecutive days and 12 hours over the same time frame if the employee has been given written consent.
This will be paid at 1.5x the regular wage, and 2x the regular wage if the overtime takes place between 10pm-6am.
Leave
- Paid Time Off
20 days per year.
- Public Holidays
11 public holidays.
- Sick Days
The employer will pay 100% of the employee’s normal salary for the first 2 days. After this day, SODRA will pay 62.06% of the employee’s normal salary.
- Maternity Leave
18 weeks is given for maternity leave. The amount the employee will receive will be 77.58% of their compensatory earnings. This can also be no less than €228 monthly.
- Paternity Leave
4 weeks paternity leave (calculated the same way as maternity leave).
- Parental Leave
Parental year is paid (the same calculation as paternity and maternity ) until the child turns one years old. If the parents choose to avail of parental leave until the child turns two years old, they will be entitled to 70% of the original amount.
Termination
- Termination Process
The correct amount of time must be given as notice to the employee in the case of terminating a contract, this time depends on the role.
- Notice Period
For employees with less than a year’s employment their notice time is 2 weeks. For employees with more than a year of employment their notice period is normally a year.
- Severance Pay
When the employee has been with the company for less than 12 months their severance pay will equal one month’s salary.
When the employee has been employed for over 240 months (20 years) their severance pay will equal 6 month’s salary.
- Probation Period
Not required by law, but are commonly given and last 3 months.
Visa
- Employment Visa
A foreigner must obtain a work permit before arriving in Lithuania.