Employer of Record in Lithuania: Hire, Manage, and Pay Talent Seamlessly

Agreements in Lithuania

• Employment contracts must be well-written with all the necessary employment information. Conditions like termination, duty, employment length, and rights should be mentioned.
• Lithuania has two types of employment contracts: definite or fixed contracts and indefinite or open-ended contracts.
• Indefinite or open-ended contract - A contract with no fixed end date is called an indefinite contract. It is mutually agreed upon and can be terminated by both parties. It is a widely used contract and hires permanent employees.
• Definite or fixed-term contract - A contract that ends on a fixed date is called a fixed-term contract. It is agreed upon for a definite type of work and a fixed time. The definite contract in Lithuania must not exceed 2 years. In some exceptional cases, the tenure can be extended to 5 years.

Visa in Lithuania

• Short-term visa: It is also called the Lithuania Schengen visa or C visa. It is valid for up to 3 months from the date of issue. This visa is granted for tourism purposes, business invites, medical care, and short stays.
• Long-term visa: It is known as the Lithuania residence visa or D visa. It is granted for a longer stay of more than 3 months. It includes visas for students, foreign employees, family reunions, and other purposes. A foreign employee/worker who wants to work in Lithuania must have a D-type visa.

Minimum Wage in Lithuania

Annual Bonus in Lithuania

Health Benefits in Lithuania

• The employer is responsible for maintaining the health and safety of its employees.
• An employee must declare health issues if any.
• Employees in Lithuania contribute to health insurance facilities. The national government also bears some specific health insurance.

Working Hours and Overtime in Lithuania

• Work hours: The work hours in Lithuania must not exceed 8 hours per day. An employee must not work more than 40 hours per week. The standard working week starts from Monday to Friday.
• Break:An employee is entitled to unpaid break time of 30 minutes. The break time can be extended to 2 hours if required. An employee must get a continuous rest time of about 8 to 10 hours.
• Overtime: An employee must not work more than 8 hours of overtime in a week. The employer has to pay 150% of the regular salary to the employee for overtime.

Leaves in Lithuania

Social Security in Lithuania

Taxes for Employers in Lithuania

• guarantee fund and long-term unemployment fund - 0.32%
• social security contributions - 1.47% to 3.5 %

Probation in Lithuania

Termination in Lithuania

• The termination process in Lithuania is complex.
• An employer must provide a written notice to the employee before termination.
• The notice period depends on the tenure of the employee.
• The notice must also mention the valid reason for the termination.
• An employee can resign from the work with a written notice stating the reason.

Severance Pay in Lithuania

Employees or Contractors in Lithuania

• A person who works for a company and gets paid is called an employee.
• An organization or company that hires employees is the employer.
• There are two types of recognized employment in Lithuania - employees and self-employed.
• A penalty is imposed if an employer is found guilty of an employee's misclassification. The penalty can range between 868 Euros to 5,792 Euros for each misclassification.
• The employer has to pay all legal benefits to such a misclassified employee.
• The employer has to pay all taxes and other contributions on behalf of the employee.