Country Payroll Guide Lithuania

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Lithuania Vilnius image

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.