Engage In Lithuania

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About Lithuania

Capital City



As of March 2024, the estimated population of Lithuania is 2,718,352.


The currency in Lithuania is the Euro (EUR). The currency symbol is €.

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Lithuania, located in northeastern Europe, is the southernmost and most prominent of the three Baltic states. With a vibrant history, Lithuania was once a powerful empire that dominated much of Eastern Europe during the 14th to 16th centuries. It later became part of the Polish-Lithuanian Confederation for the following two centuries. Lithuania is a unitary semi-presidential republic today, with Gitanas Nausėda serving as the President and Ingrida Šimonytė as the Prime Minister. Vilnius is the country’s capital city, a cultural and historical hub known for its beautifully preserved old town. With an estimated population of around 2.8 million people, Lithuania covers a total area of approximately 65,300 square kilometers. The country’s landscape is characterized by low-lying plains interspersed with moraines left behind by Ice Age glaciers. Lithuania regained its independence in 1990 and has since become a member of the European Union and the North Atlantic Treaty Organization. While Lithuania’s tumultuous past has shaped its identity, the country continues to evolve, embracing its cultural heritage while looking toward a promising future.

Employment Relationship

Permanent Employment

Lithuania's Labour Code does not define permanent employment, but employees with an indefinite employment term (open-ended employment contract) are considered permanent. These employees are hired for jobs of a permanent nature. The law allows hiring fixed-term employees for jobs of a permanent nature, but they cannot comprise more than 20% of the total workforce. 

Fixed-Term or Specific-Purpose Contracts

The maximum term for a fixed-term contract with the same employer in the same role is 2 years, including renewals, unless it is to fill a temporarily vacant position. If the agreement is extended beyond 2 years without the employee being temporarily absent, it is deemed as being for an indefinite term. When the employee is employed in different functions, the total term for fixed-term contracts is 5 years. If an employment relationship under a fixed-term employment contract continues for more than 1 year, the employer must give the employee written notice of at least 5 days upon expiry of its term or a written notice of 10 days if it continues for more than 3 years. 

Temporary Employment Contratcs

The Labour Code of Lithuania allows employers to hire temporary employees through temporary employment agencies. Temporary agency workers work under the supervision of the hiring employer but are paid by the temporary agency. This contract can be for a fixed term or an indefinite period. The user enterprise must ensure that the temporary worker is subject to the same provisions of the laws, collective agreements, and other labor law provisions that are applied at the workplace and are valid for the user enterprise's employees. Temporary employees can also be employed in the absence of a permanent employee. The contract for temporary employment must include the type of temporary work, the amount of remuneration to be given to the employee, and working time rates.

Probationary Period

In Lithuania, the Labour Code states that employment contracts can include a probationary period where the employee and the employer agree. The probationary period cannot last more than 3 months. The contract can be terminated during this period by providing a 3-day notice but no severance pay.

Working Hours

An employee's working hours are fixed under their employment contract. Usually, working hours total 40 hours per week. An employee's average working hours cannot exceed 48 hours a week. Working time, including overtime and work done according to an agreement on additional work, may not exceed 12 hours per workday/shift and 60 hours over 7 days. The working time of employees working the night shift cannot exceed eight hours per shift.  Working remotely is done at the employee's request or through mutual agreement between employee and employer. An employee's refusal to work remotely is not a legal reason to terminate the employment contract or change the working conditions.  Responsibility falls on the employer to prove remote work is incongruent with production or the type of work the organization performs and would result in excessive costs.

Holidays / PTO

Statutory Holidays

New Year’s Day (January 1), Day of restoration of the state of Lithuania (February 16), Day of the restoration of Lithuania’s independence (March 11), Christian Easter (date may vary), International Labor Day (May 1), Mother’s Day (date may vary), Father’s Day (date may vary), Day of Death and Jonah (June 24), Day of the State (July 6), Herbaceous (August 15), All Saints Day (November 1), Christmas Eve (December 24), Christmas Day (December 25 and 26).

Paid Annual Leave

Lithuania's Labour Code provides employees working 5 days a week an annual leave of 20 working days and employees working 6 days a week an annual leave of 24 working days. Annual leave must be granted at least once per year. For the first year of work, employees are entitled to full leave after working for at least half of the number of working days in the year. During annual leave, employees are paid their average remuneration.  A part of the annual leave can be transferred to the next year at the employee's request, provided they have taken an annual leave of at least 10 days in the current year. This leave is to be used within 3 years of the entitlement.  

Sick Leave

Sickness benefits are covered under the Law on Sickness and Maternity Social Insurance for insured employees who have paid contributions for at least 3 months in the last 6 months. If an employee becomes sick and is temporarily unable to work, the employer pays the first 2 days of sickness at 80-100% of the employee's average salary. From the third day, sickness benefits are paid by the State Social Insurance Fund at 80% of the employee's average salary for a maximum of 90 days in a calendar year. Sickness benefits are also paid at the rate of 85% of the employee's average salary for up to 7 days to employees taking care of a sick family member, or for up to 14 days to employees taking care of a sick child under 14 years of age.

Maternity Leave

Lithuania's labor law mandates maternity leave of 70 days before and 56 days after the delivery. In case of complications in delivery or multiple births, the leave is extended to 70 days after the childbirth. If the employee does not take maternity leave, the employer must give 14 days of leave immediately after birth, regardless of whether the employee requests it.  The State Social Insurance Fund pays maternity benefits. To be eligible for the benefit, the employee must have a record of social security payments for at least 12 of the previous 24 months under the sickness and maternity social insurance scheme. Maternity benefit is paid for 70 calendar days prior to the birth of the child up until 56 days after the birth. In the event of birth complications or multiple births, an allowance is paid for an extra 14 calendar days. Maternity benefit is equal to 77.58% of the compensated recipient’s wage. The minimal maternity benefit can be no smaller than EUR 294 per month. The maternity benefit is paid at once for the 126 calendar days (except specific cases).

Paternity Leave

In Lithuania, the father of a newborn is entitled to an uninterrupted period of 30 days-long paternity leave. Men can go on such leave anytime until the baby turns 3 months (or 6 months of birth in case of complications or multiple births). The benefits are paid if the father has a record of social security payments for at least 12 of the previous 24 months until the first day of the paternity leave. Paternity benefits are paid to the father until a child is 1 month old. The paternity benefit equals 77.58% of the compensated recipient’s wage. The paternity benefit can be no less than EUR 294 (Euros) (before taxes). The maximum paternity benefit is EUR 2,929.11 (before taxes). If a father receives any additional income during the paternity leave, they will receive the difference between the paternity allowance and your income.

Termination of Employment

Notice Period

Notice period requirements vary as follows: No notice period is required when the contract is terminated due to disciplinary issues. A notice period of 1 month is generally required when an employee who has served the employer for more than 1 year is dismissed due to no fault of their own, such as when there are organizational changes or work changes. No notice period is required when the contract is terminated due to reasons beyond the employee and employer's control. An employee can terminate their employment contract by giving a notice of at least 5 days in case of a valid reason and 20 days in case of no valid reason.

Severance Benefits

Per Lithuanian labor law, employees are eligible for severance pay from their employer as follows: If an employee resigns due to their employer's fault (salary not paid on time for 2 or more consecutive months, or the employee being idle for more than 45 days) or because of illness, disability, or to take care of a family member, the severance pay is 2 times the employee's average monthly remuneration, provided the employee had worked for more than a year. Employees who have worked for less than a year are eligible to receive 1 month's salary as severance.  Employers are also allowed to terminate employment contracts at will by giving a notice period of 3 days to their employees and a severance pay equal to 6 times their monthly remuneration.  Fixed-term employees who have worked for more than 2 years with the same employer are entitled to severance pay in the amount of 1 month's remuneration upon their contract's termination.  Employees whose contract is terminated during probation are not entitled to severance benefits. Employees terminated for gross violation of their duties are also not entitled to receive severance benefits. 

Social Security


The retirement age in Lithuania is 62 years and five months for females and 63 years nine months for males, increasing to 65 years for both men and women by 2026. A person becomes eligible for an old-age pension when they reach the retirement age and have at least 15 years of insurance record for state social pension and an obligatory 32 years of work experience, gradually increasing to 35 years by 2027.  The pension consists of a basic pension and a supplementary part. The basic portion of the pension equals 110% of the state social insurance basic pension (EUR 65 (Euros) per month), provided the person has completed 32 years of work experience with an insurance record.  The funds for this pension are sourced from contributions by employees and employers.

Dependents/Survivors Benefit

The spouse (must be of retirement age or declared incapable of work), children, and adopted children of a deceased person are eligible for the survivors pension. The deceased employee must have acquired the right to receive the state social insurance work incapacity pension or old-age pension or had at least 15 years of insurance coverage. The widow or widower is entitled to the basic amount of the state social insurance survivor’s pension approved by the government on the Ministry of Social Security and Labor's recommendation. This amount cannot be less than EUR 38.23. For the deceased’s children under 18 years of age or disabled children, the pension varies depending on their situation. The funds for this pension are sourced from contributions by employees and employers.

Invalidity Benefit

In Lithuania, persons who are assessed as incapacitated or partially able to work (with at least 45% of incapacity for work) are eligible for an incapacity pension. The minimum number of contributions required for pension varies from one year to 35 years, depending on the age of the employee.  The incapacity pension is calculated as the sum of a basic work incapacity pension, its supplementary portion, and a bonus for the service's length. Pension recipients who have lost 60% or more of their ability to work and earn less than the minimum consumption requirement amount in Lithuania (EUR 605 per month for 2024) are entitled to a pension supplement. The funds for this pension are sourced from contributions by employees and employers.

Taxation of Compensation and Benefits

Personal Income Tax

The Tax Code states that all persons who derive income from sources in Lithuania are liable to pay income tax. Residents must pay tax on their income from sources within or outside of the country. Non-residents are taxed on their income from sources within Lithuania. A flat rate of 20% applies to income below 60 VDU (average national wage is (EUR 114,162 (Euros)), and a 32% rate applies to income above that. Other types of income are taxed at a flat rate of 15% to 20%. Lithuania's fiscal year is the same as the calendar year, from January 1 through December 31.


Types of Visas

The types of visa issued in Lithuania are the following: Schengen visa – issued for a stay of less than three months Airport transit visa (A) – for a stay in the transit area of the international airport during a layover Short-stay visa (C) – for a stay in Lithuania of up to 3 months, valid for 6 months National visa – issued to foreigners who wish to stay in Lithuania for more than 3 months; single-entry or multiple-entry.

Work Permit

Non-EU nationals who wish to work in Lithuania are required to obtain a work permit. Those who intend to stay in Lithuania for no longer than a year require a National visa (Type D). For longer stays, a temporary residence visa is required. A temporary residence visa is a multiple entry visa valid for 2 years (3 years for highly qualified workers). An employer intending to employ a foreigner to work under an employment contract must register a vacancy with an employment office in the Employment Service. A work permit is issued if no specialist in Lithuania meets the employer's qualification requirements. The Lithuanian Labor Exchange is responsible for issuing, extending, and revoking work permits for foreign nationals.  The work permit is issued for up to two years, and it specifies the job position and organization address where the foreigner would be employed. The work permit's duration for seasonal work is 6 months, and it is 1 year for persons entering as an intern or trainee.

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