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Lithuania
The Republic of Lithuania the Baltic region of Europe. It is bordered by Latvia to the is a country in north, Belarus to the east and south, Poland to the south, and Kaliningrad Oblast (a Russian exclave) to the southwest.
POPULATION
2,89 million inhabitants
CURRENCY
Euro (EUR)
GDP
$84,87 billion
MINIMUM MONTHLY WAGE:
1153 EUR
TIME ZONE
UTC +2
Lithuania is a member of the European Union and the largest economy among the three Baltic states.
Lithuania has an open and mixed economy that is classified as high-income economy.
Lithuania, beyond its natural beauty, also boasts of a robust economy. Lithuania is considered one of the more attractive EU countries to start and run a business in 2026, especially for international founders looking for stability, access to the EU market and a digitally advanced environment.
Lithuania combines EU and eurozone membership with a business-friendly regulatory framework, predictable tax rules and strong institutional support for foreign companies. The country’s economy is export-oriented, which means businesses are structured from the outset to work with international clients
rather than relying solely on the domestic market.
From an operational perspective, Lithuania offers competitive costs compared to Western Europe, a highly educated workforce and modern digital infrastructure. Company formation and ongoing compliance are
relatively straightforward when handled correctly, and many processes can be managed remotely.
There are several types of employment foreseen by the local law in Lithuania:
➢Employment contract.
Open-ended contract.
Fixed-term contract. A fixed-term employment contract may be concluded for a certain period of time or for the period of the performance of certain work, but not exceeding five years. It shall be prohibited to conclude a fixed-term employment contract if work is of a permanent nature, unless this is provided for by laws or collective agreements.
➢Independent contractors or consultants.
➢Additional Work and Secondary Job.
➢Teleworking Contract.
• Working time may not exceed 40 hours per week.
• A daily work period must not exceed 8 working hours.
• Maximum working time, including overtime, must not exceed 48 hours per 7 days.
• Employees must be granted with annual leave not shorter than 20 business days (or not shorter than 24 business days, if an employee works 6 days per week).
• One instalment of annual leave may not be: shorter than 10 business days; shorter than 12 business days (if an employee works 6 days per week).
• Employees are entitled to 18 weeks (126 days) of paid maternity leave by SODRA. Maternity leave is to be taken 70 days before the birth of the child and for 56 days after. Maternity leave is increased by 14 days in case of multiple or complicated childbirths.
• The number one employee fringe benefit people in Lithuania care about and employers more often provide them with is supplementary health insurance. (Although the state healthcare is considered good, coverage such as dental care is not included).
• Mobile phone allowance.
• Wellbeing allowance.
If you are arriving from another European Union country, Europe’s economic zone community, or Switzerland, you will not need a permit to work in Lithuania. You will simply need to validate your status in the country by filling out the appropriate form.
Unfortunately, there are restriction to employ non-EU foreigners by the EOR agencies in Lithuania. As the aim of the law is that foreigners to be employed directly by the real employer avoiding any intermediate agencies.
1. Termination based on employer’s will. The employer can terminate the contract only with the reason specified in the Labour Code.
a. The employment contract is terminated by giving the employee one month’s notice, and if the employment relationship lasts less than one year, two weeks’ notice. These notice periods are doubled for employees who have less than five years left until the statutory retirement age, and tripled for employees who are raising a child under the age of fourteen, and employees who are raising a disabled child under the age of eighteen, pregnant employees, disabled employees and employees who have an extract from an illness included in the list of serious illnesses approved by order of the Minister of Health of the Republic of Lithuania, as well as for employees who have less than two years left until the statutory retirement age.
2. Termination based on employee’s will. An employment contract may be terminated by the employee’s written statement, after notifying the employer no later than twenty calendar days in advance, except for cases where the employer agrees to shorten the notice period or not to apply it.
3. Mutual agreement. Amount of severance and date of the termination depending on the mutual agreement.
Dismissed employee has to be paid a severance pay of his/her 2 average monthly salaries. If employment relationship lasted less than one year, dismissed employee has to be paid 0,5 of his/her average monthly salary.
Additionally, dismissed employee receives a severance pay from a special state fund, amount of which depends on the continuous length of employment.
The following paid public holidays are observed in Lithuania:
• Jan. 1: New Year’s Day
• Feb. 16: Day of Reestablishment of the State of Lithuania
• March 11: Day of Reestablishment of Lithuania’s Independence
• Easter and Easter Monday (Western Church)
• May 1: International Labor Day
• First Sunday in May: Mother’s Day
• First Sunday in June: Father’s Day
• June 24: Rasos and St. John’s Day
• July 6: Day of the State (Coronation of King Mindaugas)
• Aug. 15: Assumption Day
• Nov. 1: All Saints’ Day
• Nov 2: Commemoration of all the Faithful Departed (All Souls’ Day)
• Dec. 24: Christmas Eve
• Dec. 25 and 26: Christmas
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