Lithuania

Mauve Group has a variety of solutions to facilitate your company's expansion into Lithuania. Your company will be able to employ workers in Lithuania legally and quickly, without the need for a local company, through our global Employer of Record (EOR) service. We can take care of employment contracts and payroll registration and statutory/vacation/discretionary benefits, taxes, employee expenses, and severance or termination if our required employment in Ireland is to be terminated. We can simplify payroll administration to your company in Lithuania through our global payroll services; our local compliance ensures that payment is made to employees accurately and on time. We can provide your company with an in-depth analysis of salaries and compensation trends in the Lithuania through our salary benchmarking service, established to allow your company to create competitive compensation structures that align with the Lithuanian market. Mauve can also provide individualised HR services to support your operations in Lithuania, for example to provide compliance, management of and support to your employees, and to assist with HR processes, in order for your employees to be effectively managed and to achieve people-focused growth.

At a glance

Capital

Vilnius
Currency

Euro (€, EUR)
Official Languages

Lithuanian (official language)
Population Size

2,840,758 (2022)
Ease of doing business

Very Easy
VAT

0.21

About

Lithuania is the largest of the Baltic states, with Vilnius as its capital. Since joining NATO and the European Union, Lithuania has undergone rapid economic growth and modernisation. The country is now a notable destination for foreign direct investment, particularly in the technology sector, supported by a highly educated and multilingual workforce.

Its stable business environment, competitive labour costs, and digital infrastructure make it a strong option for companies looking at how to expand business internationally or employing staff overseas.

For organisations managing a global workforce, understanding local employment laws and global compliance requirements is essential. That’s where Mauve can help.

Mauve Group operates through its own local entity in Lithuania, offering expert Employer of Record (EOR) services, international payroll solutions, and global HR consultancy. Whether you're hiring remote workers or establishing a presence in the region, our tailored in-country services ensure full compliance and smooth expansion.

Public Holidays

Salary & Compensation

Working Hours

Employees can work up to eight hours a day, or 40 hours per week. This can be extended to 48 hours including overtime.

Minimum Wage

In 2024, the national minimum wage in Lithuania is €924 per month, and a €5.65 hourly rate.

In 2025, the amount is set to increase to €1,038 monthly, and a €6.35 hourly rate.

Employee Tax

Annual income	Tax rate
Up to EUR 101,094	20%
More than EUR 101,094	32%
Social security contribution	Variable rate*

*Rate depends on source and amount of income.

Bonuses

There are no statutory bonus schemes in Lithuania.

Contracts

Employment contracts must be written in accordance with the model form established by Lithuanian law. The parties must agree on the place of work, job title and responsibilities, and salary.

In addition to indefinite and fixed-term contracts, the following are recognised:

Project-based employment contract
Job-sharing employment contract
Employment contract for several employers
Apprenticeship employment contract

Types of Leave

Annual Leave

Employees are entitled to 20 working days (for those working five (5) days per week), or 24 working days (for those working six (6) days per week) of paid annual leave. For some employees, annual leave is 25 working days (for those who work five (5) days per week) or 30 working days (for those who work six (6) days per week). These employees are:

single parents with a child under the age of fourteen (14), or a disabled child under the age of eighteen (18),
disabled employees, and
employees under 18 years.

Sick Leave

Employees can retain their position for up to 140 consecutive days. If they are unable to work after this period, the contract can be terminated with notice.

Some employees can claim state social insurance benefit when they are unwell.

Parental Leave

Employees are entitled to at least 126 calendar days of paid maternity leave.

Employees are entitled to 30 calendar days of paternity leave.

Termination

Termination Process

Employers in Lithuania can terminate a contract, provided they give notice in line with legal requirements.

Employers can dismiss employees without notice on grounds of misconduct and negligence, provided disciplinary sanctions have been imposed at least once in the last year.

Employees can also terminate a contract by giving at least 14 days' notice.

Severance Pay

Employees are entitled to two (2) months of the employee’s average remuneration, or ½ of employee’s average remuneration if duration of employment is less than one year.

Insurances

Under a Mauve Group Employer of Record (EOR) solution, clients and their international workers benefit from access to Mauve’s Global Master Insurance Programme—a market-leading, unified corporate insurance framework that connects all Mauve entities with two trusted providers. As part of our comprehensive global Employer of Record services, this insurance offering supports companies employing staff overseas by ensuring full compliance with local legal requirements while safeguarding their workforce.

The programme provides international insurance coverage through a combination of the master policy and jurisdiction-specific local policies, where required by law. This structure ensures seamless alignment with local employment laws—an essential element of maintaining global regulatory compliance within any international EOR payroll arrangement.

Coverage includes:

Employer’s Liability and Public Liability – £10,000,000 combined limit
Professional Indemnity – £5,000,000 limit
Worker’s Compensation – Limit varies based on the employee’s country of work

This solution is ideal for organisations seeking to streamline global employee management while ensuring every EOR employee is protected and fully compliant in their respective jurisdictions.

For tailored advice on EOR insurance coverage, payroll compliance, or global compliance services in your target country, get in touch with Mauve’s expert international HR consultancy team.

Our Services

Employer of Record (EOR)

Independent Contractor Solutions

Global Business Expansion

Global Visa & Immigration

Global Payroll

Project Management

Consultancy Services

Value-added Services

Global HR Consultancy