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Hiring in Lithuania through an EOR (2026)

Here's what you need to know before you hire in Lithuania: what it really costs an employer, the employment laws that shape the contract, and how an Employer of Record lets you hire compliantly without opening a local entity. Every figure below is sourced and dated.

1.8%Employer cost on top
€1,153Minimum wage / mo
20 daysPaid annual leave
Days, not monthsTime to hire via EOR
Robbin Schuchmann
Written by:
Co-Founder at EOR Overview
Last updated: July 1, 2026

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Lithuania at a glance

The statutory facts that drive a hire in Lithuania. Each row shows where the figure comes from and how current it is, so you can trust the number and check it yourself.

Pay & working time

Minimum wageper month€1,153CurrentEurostat · 2026
Average wageper year58,112AgingOECD · 2025
Statutory work week40 hours/weekCurrentStatutory working time (national labour law) · 2024
13th-month salarynoneCurrentNational government · 2026

Employer cost & tax

Employer social securityof gross salary1.8%AgingOECD · 2025
Employee social securitywithheld from pay19.5%AgingOECD · 2025
Total tax wedge39.8%AgingOECD · 2025
Corporate tax rate17%CurrentOECD · 2026

Termination

Notice period4.3 weeksCurrentWorld Bank Employing Workers / B-READY · 2019
Severance pay8.7 weeksCurrentWorld Bank Employing Workers / B-READY · 2019
Employment protectionOECD EPL, scale 0–61.8AgingOECD · 2025

Leave & time off

Paid annual leave20 daysCurrentNational government · 2026
Public holidays16 daysCurrentNational government · 2026
Maternity leave18 weeksDatedOECD Family Database · 2024
Paternity leave4.3 weeksCurrentWorld Bank Women, Business and the Law · 2026
Parental leave61.7 weeksDatedOECD Family Database · 2024

Labour market

Retirement age65DatedOECD Pensions at a Glance · 2024
Unemployment rate7.1%CurrentOECD · 2026
GDP per capita$32,959AgingWorld Bank Open Data · 2025
Union density8.3%DatedOECD/AIAS ICTWSS · 2022
Collective bargaining coverage29%DatedOECD/AIAS ICTWSS · 2023

Each row shows the year of the most recent citable source for that figure. Where a year looks old, that is the newest comprehensive source available, and we keep the sourced figure rather than substitute an unsourced newer one. Statutes may have changed since.

What it costs to hire in Lithuania

Salary is only part of the bill. On top of gross pay you owe employer social security and statutory contributions. Here's what an example salary of $58,000 a year actually costs you as the employer.

Gross annual salary$58,000
Employer contributions≈ 1.8% of gross+ $1,038
Total employment cost$59,038
Your EOR handles the filings

Illustrative, based on the employer social-security rate above. An EOR adds its own service fee on top of this total and runs the income-tax withholding and statutory filings, which are withheld from the employee's pay, not paid by you.

Income tax in Lithuania

The average effective income-tax rate is about . This is withheld from the employee's salary; an EOR runs the withholding and filing.

Employer contributions
Social security1.8%
Employee contributions
Social security19.5%

Employment-law essentials

The rules an EOR enforces in your contracts, and the ones most likely to trip you up if you tried to hire in Lithuania on your own.

Working time
Statutory work week40 hours/week
Pay & 13th salary
Minimum wage€1,153
13th-month salarynone
Leave
Paid annual leave20 days
Public holidays16 days
Maternity leave18 weeks
Paternity leave4.3 weeks
Termination
Notice period4.3 weeks
Severance pay8.7 weeks

Statutory minimums shown. Collective agreements or contracts can be more generous; an EOR applies whichever is correct for the role.

EOR vs. opening your own entity in Lithuania

Use an EOR when…
You're hiring one to a handful of people in Lithuania.
You want someone working in weeks, not months.
You'd rather not own local payroll, tax and compliance.
You're testing the market before committing.
Open your own entity when…
You're scaling to a large local team long-term.
Per-employee EOR fees outweigh the cost of an entity.
You need full control of local employment and IP.

Choosing an EOR for Lithuania

Providers with strong Lithuania coverage onboard faster and carry less risk. A shortlist to start from:

Compare all EOR providers in Lithuania

See our ranked best EOR providers in Lithuania

Common questions about hiring in Lithuania

Common questions about hiring in Lithuania through an EOR.

Do I need a legal entity to hire someone in Lithuania? +
No. An Employer of Record (EOR) already has a legal entity in Lithuania and employs the person on your behalf, so you can hire compliantly without opening your own entity. You manage the day-to-day work; the EOR handles the local contract, payroll, taxes and statutory benefits.
How much does it cost to employ someone in Lithuania? +
On top of gross salary, employers in Lithuania contribute roughly 1.8% in social security and statutory costs. An EOR adds its own service fee on top of that total employment cost.
What is the minimum wage in Lithuania? +
The statutory minimum wage in Lithuania is €1,153. Pay below this is not permitted, and an EOR will hold contracts to at least this floor.
How hard is it to terminate an employee in Lithuania? +
Ending employment in Lithuania generally requires a notice period of around 4.3 weeks and severance of about 8.7 weeks, subject to the reason for termination and the employee's tenure. An EOR runs the offboarding in line with local law to limit your risk.
How much paid leave do employees get in Lithuania? +
Employees in Lithuania are entitled to 20 days of paid annual leave, in addition to public holidays. Statutory leave is one of the entitlements your EOR administers automatically.
About the author
Robbin Schuchmann
Co-Founder at EOR Overview
Robbin is the co-founder of EOR Overview, an independent research site for Employer of Record services. He has been in the international hiring space for over a decade.
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