<img alt="" src="https://secure.intelligentcloudforesight.com/779425.png" style="display:none;">
Skip to content

Labor Laws in Lithuania

  • Annual Leave: 20 days
  • Maternity Leave: 126 days
  • Public Holidays: 11
  • Workweek: 40 hours per week.

Income Tax in Lithuania

Income Tax in Lithuania is progressive and ranges from 20% to 32%.

Value Added Tax (VAT) in Lithuania

The standard VAT Rate is 21%.

Social Security in Lithuania

In Lithuania, both employers and employees contribute to social security. The contributions are as follows:

Employer Contributions

  • Employers contribute 1.77% of a permanent employee's gross salary into the social security fund.
  • For fixed-term employees, the employer contribution rate is higher at 2.49%.
  • These contributions cover retirement, unemployment, sickness, and maternity leave benefits.
  • Employers must also contribute 0.16% of the employee's gross salary into the guarantee fund, which provides support if the employer goes bankrupt.
  • An additional 0.16% contribution goes to the long-term employment fund, which provides payments to employees if the employer terminates the agreement without cause.
  • The social insurance contribution rate for accidents at work and occupational diseases varies based on the company's risk profile, ranging from 0.18% to 1.8%.

Employee Contributions

  • Employees contribute 19.5% of their gross salary towards social security.
  • This employee contribution is withheld by the employer during payroll.
  • The 19.5% employee contribution is divided into:
    • 2.09% for illness insurance
    • 1.71% for maternity insurance
    • 6.98% for health insurance
    • 8.72% for pension insurance (1st pillar)

Work Visas Lithuania

The visas available to legally work in Lithuania include:

National Work Visa (Temporary Residence Permit for Employment)

  • For non-EU nationals with a job offer from a Lithuanian employer. Requirements:
    • Job offer from a Lithuanian employer.
    • Necessary qualifications or experience for the job.
  • Typically up to 2 years, renewable.
  • Eligibility for permanent residency after 5 years.
  • Can be extended if employment continues.

EU Blue Card Visa

  • For highly skilled non-EU nationals.
  • Requirements:
    • Higher education degree or at least five years of professional experience.
    • Job offer in Lithuania with a salary at least 1.5 times the average gross annual salary.
  • Up to 4 years, renewable.

Hire Lithuanian Talent with Global Expansion

Setting up a company in Lithuania can be expensive and complex. Global Expansion simplifies your entry into this market.

We handle hiring, HR, and payroll while ensuring compliance with local regulations, all without establishing a local entity.

Our Lithuania Employer of Record (EOR) solution lets you focus on your business growth.

Ready to hire anywhere in the world?

Grow your team the right way with
Global Expansion.

Request a Proposal