Hire in Lithuania

Lithuania PEO &

Employer of Record

Hire & manage teams remotely in Lithuania without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Lithuania EOR PEO

Business Language

Lithuanian

Salary Currency

Euro €

Capital city

Vilnius

Time zone

UTC +3

EOR in Lithuania

Lithuania EOR PEO

Hire Employees in Lithuania

NNRoad provides professional employment organization (PEO) & employer of record (EOR) services in Lithuania to ensure that your business complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

Fast Hiring

Start working with your remote employees in a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.

Platform

Access your payroll reports on our portal.

Employer of Record in Lithuania

Employer of Record (EOR) services are for companies who do not have a legal entity in Lithuania, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

1. Candidate Selection

Select the candidates you want to hire in Lithuania.

2. Employee Onboarding

We sign a local labor contract with your employees based in Lithuania.

3. Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Lithuania.

EOR service includes:

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

All mandatory employer (and employee) contributions filed and paid for your EOR employees.

Payroll recording, reporting and administration.

Distribution of salaries to employees through direct deposit into their bank accounts.

Calculation, reporting, filing and processing of EOR employee’s individual income tax due.

Collecting and processing your employee’s invoices for business related expenses.

Guiding and organizing your expat employee’s work visa application too guarantee their successful onboarding.

Standalone Payroll & PEO in Lithuania

Professional Employment Organization (PEO) services are for companies who have a legal entity in Lithuania, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

Employee Income Taxes:

Individual income tax rates in Lithuania are based on progressive tax brackets.

In Lithuania, the income tax system for employees is administrative. Employers are responsible for declaring and deducting income tax from their employees’ salaries before paying them. This system simplifies the process for employees, as they do not need to declare their own income tax to the government.

Tax Brackets:

Sample Calculation

20%: 0 – 84,000 EUR
32%: >84,000 EUR
Yearly income = 100,000
20% x 84,000 EUR = 16,800
32% x 16,000 EUR = 5120

16,800 + 5120 = EUR 21,920 due

Employer Contribution

Employers in Lithuania are required to make several contributions on behalf of their employees:

  • Social Security Contribution: 1.77% of the employee’s salary.
  • Guarantee Fund: 0.16% of the employee’s salary.
  • Long-term unemployment contribution: 0.16%.

    Employee Contribution

    Employees also have mandatory contributions deducted from their salaries:

  • Social Security Contribution: 19.5% of the salary.
  • Health Insurance Contribution: 6.98% of the salary.

    Social Security

    Both employers and employees in Lithuania contribute to Social Security, which covers pensions, sickness, and other benefits. The combined contribution significantly supports the social welfare system.

  • Pension Fund

    Employees contribute 2.5% of their salary to the pension fund, which is supplemented by a state contribution depending on the individual’s earnings and the total contributions made.

    Healthcare Insurance

    Healthcare contributions in Lithuania are primarily covered by the employee at 6.98% of their salary, ensuring access to public healthcare services.

    Working Hours Per Week

    The standard working hours in Lithuania are 40 hours per week, typically spread over five days, from Monday to Friday.

    Overtime

    Overtime work is compensated at a rate of at least 150% of the employee’s regular pay rate, in accordance with Lithuanian labor laws.

    Legal termination of employment in Lithuania can occur under several conditions, such as mutual agreement, redundancy, or breach of contract.

    Severance

    Standard severance payment in Lithuania depends on the tenure of the employee, generally ranging from one to six months of the employee’s average salary.

    Notice Period

    The notice period required by employers in Lithuania varies from two weeks to three months, depending on the length of employment. Employees are typically required to give at least two weeks’ notice when resigning.

    Employment Contract

    Labor contracts in Lithuania must outline terms such as job description, salary, working hours, notice period, and any probation period, which legally cannot exceed six months.

    Probation Period

    The maximum legal probation period duration in Lithuania is six months for most employment positions.

    Annual Leave

    Employees are entitled to 20 paid days of mandatory annual leave per year.

    Sick Leave

    Lithuanian labor law provides for up to 2 days of employer-paid sick leave, followed by government-paid sick leave at a reduced rate.

    Maternity Leave

    Mothers are entitled to 70 days of fully paid maternity leave before childbirth and 56 days after, with extended benefits under specific conditions.

    Paternity Leave

    Fathers in Lithuania can take up to 30 days of paid paternity leave, which can be extended in certain circumstances.

    Public Holidays

    January 1: New Year’s Day
    February 16: Restoration of the State Day
    March 11: Restoration of Independence Day
    Easter Monday (date varies)
    May 1: International Workers’ Day
    June 24: St. John’s Day
    July 6: Statehood Day
    August 15: Assumption Day
    November 1: All Saints’ Day
    December 25: Christmas Day
    December 26: Second Day of Christmas

    Resources

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