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Lithuania is one of the three Baltic states, along with Latvia, to Lithuania’s north, and Estonia, to the north of Latvia. Lithuania borders Russia and Poland to the south and Belarus to the east. It has a narrow coastline on the Baltic Sea to the west. Lithuania declared its independence from the Soviet Union in 1990, the first Soviet republic to do so, although its status was unclear until the Soviet Union dissolved in 1991. It joined the European Union in 2004 and has used the euro as its currency since 2015. Lithuania has a diverse economy. Food processing, plastics, chemical products (particularly fertilizers), and furniture are all major industries. It also has a vibrant financial sector, with many international banks doing business in the country. IT and communications technologies are growing industries.

Employment contracts in Lithuania must be in writing and executed in duplicate, with the employer and employee each receiving a copy. An employer with more than three employees must immediately register the contract in the government employment contracts register.

An employment contract is an agreement between the employer and the employee regarding the employee’s job function, the employee’s compensation, and the workplace. For any employee who will work for more than one month, the employer must provide the following in writing prior to the start date:

  • the employer’s full name and registered office address,

  • the place where the employee’s work will be performed,

  • the type of employment contract (indefinite, fixed term, or other type),

  • the job description, rank/position and qualification level,

  • the date employment will commence (and the end date, if applicable),

  • annual leave information,

  • the termination notice period,

  • salary and payment procedures,

  • working hours, and

  • information about any collective agreements that apply.

The standard workweek in Lithuania is 40 hours over five days. Flexible working hours are common in Lithuania, and some employees may do part of their work outside of normal working hours. Overtime is capped at eight hours per week (which can be increased to 12 hours if the employee consents) and 180 hours per year. Employees are paid 150% of their standard hourly rate for overtime, and 200% for work on a holiday or a day the employee was not originally scheduled to work. An employee who works longer than three hours between 10 p.m. and 6 a.m. or works more than 25% of total hours during this time receives 150% of the standard hourly rate for night hours. Employees who work overtime between 10 p.m. and 6 a.m. or on a day they were not originally scheduled to work receive 200% of the standard hourly rate, and employees who work overtime on a holiday receive 250% of the standard hourly rate.

Employees in Lithuania are eligible for paid sick leave until they either return to work or are declared disabled and unable to work. The first two days are paid by the employer at a percentage of the employee’s average monthly pay. Beginning on the third day, an eligible employee receives a social security payment.

Female employees receive 126 days of maternity leave in Lithuania, 70 days before the birth and 56 days after. The mother is entitled to 70 days of leave after the birth if she has complications or multiple births. During her maternity leave, the mother receives a social security maternity benefit if she meets eligibility requirements. The benefit is normally 77.58% of her normal pay. If she adopts a newborn, the mother receives maternity leave until the child is 70 days old.

Fathers receive 30 days of paternity leave in Lithuania, which may be taken at any time within one year after his child's birth. If the father is eligible, he will receive a social security benefit during paternity leave, normally 77.58% of his normal pay. An adoptive father must take within one year of the award of custody.

Employees in Lithuania are entitled to a monthly minimum wage. Bonuses may be paid at the discretion of the employer. They are often performance-based.

Employees receive 20 days of annual paid leave in Lithuania. After 10 years with the same employer, an employee is entitled to an additional three days of annual leave, and one more day is added every five years after that. The employer schedules employees’ annual leave in accordance with a collective agreement, agreement between the employer and the workers’ council, or the terms of another applicable agreement or law.

In Lithuania, the public holidays are:

  • New Year’s Day

  • Independence Restoration Day

  • Independence Day / National Day

  • Easter Monday

  • Labor Day

  • St. John’s Day

  • King Mindaugas' Coronation Day

  • Assumption of Mary

  • All Saints’ Day

  • All Souls' Day

  • Christmas Eve

  • Christmas Day

  • Second Day of Christmas

Lithuania has national healthcare. There are also private clinics, although few residents of Lithuania have private health insurance.

An employer in Lithuania must provide notice of termination in writing one month in advance if the employee has worked for the employer for one year or longer, and two weeks in advance if the employee has worked for less than one year. The terminated employee must be paid severance of two times the usual average monthly salary, or half the amount paid in one average month if the employee has worked for the employer for less than one year. Employees who have worked for the employer for longer periods of time are also entitled to a long-term service allowance determined by the employee’s length of service.

  • Local Laws & Regulations

    We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.

  • Partner with atlas logo

    Partnering with Atlas when expanding into Lithuania can dramatically reduce the standard brick and mortar processes of doing business in foreign markets and allow you to focus on what you do best, growing your company! To discover more about how Atlas can simplify your ability to expand globally, please feel free to contact us.

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