HR Services in Lithuania
HR support for US, UK and international companies hiring in Lithuania: Lithuanian contracts and policies, payroll coordination, compliance and recruitment. Build your Lithuanian team without building an HR department first.
Last reviewed October 2026. Collective agreements can set other terms.
Expand Into Lithuania With an HR Partner Who Knows Lithuanian Labor Law
Lithuania’s economy grew 3.0% in 2025, against 1.4% across the EU, and it has used the euro since 2015. It also brings detailed employment rules: a written contract in Lithuanian and a Sodra notice before work starts, overtime caps, sick pay from the employer for the first 2 days, severance on most dismissals, and, as a rule, a works council from 20 employees.
Europe HR Solutions is your HR partner for Lithuania. We prepare Lithuanian contracts, policies and handbooks, put payroll foundations in place and coordinate your payroll provider, support hiring and reward, and review your HR practices as Lithuanian law changes.
Expanding beyond Lithuania? The same team covers 27+ European countries, so you manage one relationship instead of a provider in every market.
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Tell us about your plans for Lithuania. We’ll tell you honestly what we see.
Book a Free Consultation Free, no commitment.HR Outsourcing in Lithuania With Europe HR Solutions
One senior Europe HR Solutions team coordinates your HR in Lithuania, working with independent in-country HR professionals from our European network who understand Lithuanian employment practice.
Everyday HR, handled
Payroll coordination, recruitment, compliance and employee relations for your team in Lithuania, handled as one service, so you can focus on growing the business.
Compliance with Lithuanian labor law
We make sure your HR operations comply with Lithuanian law, and review your contracts and policies as the Labor Code and collective agreements change.
Cost-effective HR
Outsourcing means you don’t need your own HR team in Lithuania, which reduces cost and frees resources for growth.
Flexible engagement
We work ad hoc, on an interim basis, by project or on a retainer, from a few weeks to several years.
HR Services We Provide in Lithuania
Each of our services is available for Lithuania.
Compliant contracts, payroll registration and statutory foundations in place before your first Lithuanian hire.
Employment Documentation Package→Lithuanian contracts, policies and handbooks aligned with Lithuanian labor law.
Systems & Payroll Coordination→Your HR systems and payroll providers aligned, with consistent data and full visibility for leadership.
Compensation & Benefits Strategy→A structured reward framework aligned with Lithuanian law, market data and internal equity.
Recruitment Support→Roles calibrated, salaries benchmarked and hiring aligned with Lithuanian employment law.
HR Compliance Audit→A structured review of your HR compliance risk in Lithuania, with a clear action plan.
Retained HR Services→Ongoing senior HR oversight on a monthly retainer, including manager coaching and support with works council interactions.
M&A HR Support→HR due diligence, employee transfer and post-deal integration for deals in Lithuania.
Key Employment Regulations in Lithuania
The Labor Code (Darbo kodeksas) sets the baseline. Collective agreements can improve on it, and national or sector agreements, and contracts paying at least twice the national average wage, can depart from some of its rules, so check before you hire.
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Contracts and written terms
Contracts must be in writing, in Lithuanian, plus a language a foreign employee understands. Before work starts, the employer notifies Sodra, as a rule at least one working day ahead (one working hour for a company’s sole manager), and gives written information on the main terms. Fixed terms for permanent work are capped at 20% of an employer’s contracts, and fixed terms for the same job at 2 years in total, unless they replace an absent employee.
Working hours and overtime
Full time is 40 hours a week. As a rule, work including overtime can’t exceed 48 hours a week on average, 12 hours a day or 60 hours in 7 days. Overtime needs written consent, with a few exceptions, is capped at 180 hours a year unless a collective agreement allows more, and earns at least 1.5 times pay.
Minimum wage (minimalioji mėnesinė alga)
The minimum wage is €1,153 gross a month for full-time work, or €7.05 an hour, in 2026, and €1,245, or €7.61 an hour, from January 1, 2027. It can only be paid for unskilled work. The government sets it after the Tripartite Council’s recommendation. Night work earns at least 1.5 times pay, and work on public holidays at least double.
Paid leave and public holidays
At least 20 working days a year on a five-day week (24 on a six-day week), or 25 for under-18s, employees with disabilities and single parents of a child under 14 or a disabled child under 18. Jobs on a government list get up to 41. Leave is paid at average pay, and Lithuania has 16 public holidays, three always on a Sunday.
Sick pay (ligos išmoka)
Employers pay the first 2 days of each sick leave that fall on scheduled workdays, at 62.06% to 100% of average pay. From day 3, Sodra, the State Social Insurance Fund Board, pays sickness benefit of 62.06% of the employee’s compensated earnings, as long as they meet the insurance conditions.
Maternity, paternity and parental leave
Maternity leave runs 70 days before birth and 56 after (70 after a complicated or multiple birth), and fathers get 30 calendar days of paternity leave before the child turns 1. Either parent, or another relative raising the child, can then take childcare leave until the child is 3. Sodra pays the benefits to insured employees, not the employer, with childcare benefit until 18 or 24 months.
Probation (išbandymas)
Probation is optional and lasts up to 3 months, not counting sick leave, leave and other absences, and can’t be extended by agreement. From November 1, 2026, employees paid at least twice the national average wage can have up to 6 months. Either side can end the contract during probation with 3 working days’ written notice, with no severance.
Notice and dismissal (atleidimas)
Dismissal without the employee’s fault needs a legal reason, such as redundancy, and 1 month’s notice (2 weeks in the first year), doubled or tripled for protected groups. Severance is 2 months’ average pay, or half a month in the first year. Private employers can also dismiss at will, from November 1, 2026 for a justified reason, with 3 working days’ notice and at least 6 months’ pay. Parents of a child under 3 can’t be dismissed without fault on most grounds, and staff on family leave can’t be dismissed at will.
Employee representatives
From an average of 20 employees, the employer must have a works council (darbo taryba) set up, unless a trade union with more than a third of the staff as members takes over its role. Below 20, staff can elect an employee trustee with the same rights. Employers must inform and consult them on key decisions and agree redundancy selection criteria with them.
Collective agreements (kolektyvinės sutartys)
A company agreement binds the employer that signs it. A national, regional or sector agreement binds members of the employers’ organization that signed it, and the labor minister can extend some of its terms to all employers in that sector or region if both parties ask in writing at least 6 months before it expires. Agreements can improve on the law, and depart from it only where it allows, such as more than 180 overtime hours a year.
Social security
Since 2019, employees pay most social insurance and health contributions out of gross pay: 19.5% in 2026 as a rule (3% more for those saving in a pension fund), with social insurance capped at 60 average wages a year (€138,729). Employers pay 1.77% as a rule (Sodra, 2026), more for fixed-term contracts and riskier work, so non-wage costs, such as employer social contributions, add about 6% on top of gross wages in Lithuania (Eurostat, 2025).
Pay transparency
Lithuania amended its Labor Code to implement the EU Pay Transparency Directive, mostly in force since June 7, 2026. Job ads must, as a rule, state the base pay or its range, and you can’t ask candidates about their pay history. Employers without a pay system set by collective agreement must adopt one, with job groups based on objective criteria, by December 31, 2026.
The Benefits of Expanding to Lithuania
What Lithuania offers companies that set up properly.
A euro area economy
Lithuania’s GDP was €85.1 billion in 2025, and it has used the euro since January 1, 2015 (Eurostat, ECB).
Growth above the EU average
Lithuania’s economy grew 3.0% in real terms in 2025, more than twice the EU’s 1.4% (Eurostat).
Competitive labor costs
Average hourly labor costs in industry, construction and services (excluding public administration) were €17.80 in Lithuania in 2025, against €34.90 across the EU (Eurostat).
A logistics hub
Transport and storage made up 10.2% of Lithuania’s gross value added in 2025, the highest share of the 25 EU countries with data (Eurostat).
Digital adoption
Lithuania ranks 4th of the 132 economies with data for ICT use (Global Innovation Index 2026).
A knowledge workforce
Lithuania ranks 14th of the 125 economies with data for knowledge-intensive employment (Global Innovation Index 2026).
The Challenges of Expanding to Lithuania
Six things to plan for before your first hire.
Paperwork before day one
Each hire needs a written contract in Lithuanian, written information on the main terms and a Sodra notice, as a rule one working day ahead.
Overtime caps
As a rule, overtime needs written consent and stops at 180 hours a year, and weeks can’t average more than 48 hours.
Severance on most dismissals
After a year’s service, no-fault dismissals need 1 month’s notice, up to 3 months for protected groups, and 2 months’ average pay as severance.
A works council from 20 employees
From an average of 20 employees, a works council must be set up, unless a union with over a third of staff takes its role.
A pay system by year end
Employers without a pay system in a collective agreement must adopt one, with job groups based on objective criteria, by December 31, 2026.
Employment costs
Employees pay most social insurance contributions. Non-wage costs, such as employer social contributions, add about 6% on top of gross wages in Lithuania (Eurostat, 2025).
Key HR Compliance Risks in Lithuania
Eight mistakes to avoid in Lithuania, and what each one leads to.
Illegal work
Work without a written contract, or without a Sodra notice before work starts, is illegal work. The employer owes the worker at least three minimum monthly wages and faces a fine of 3 to 12 minimum monthly wages per worker; its manager faces €1,500 to €5,000, or €5,000 to €6,000 on a repeat.
Pregnant employee dismissed
From when you learn of a pregnancy until the baby is 4 months old, you can’t dismiss her, even for misconduct, unless the employer is wound up. A labor dispute body can order reinstatement, pay for the time out (up to a year) and damages.
No working time records
Unless hours never vary, employers must record working time, including overtime, night and holiday work. Breaches cost the manager €240 to €880, or €900 to €1,400 on a repeat.
Fixed terms misused
Fixed terms for permanent work are capped at 20% of an employer’s contracts. Fixed terms for the same job beyond 2 years in total become open-ended, unless they replace an absent employee.
Dismissal without due process
A conduct dismissal needs a gross breach, or a repeat within 12 months after a warning, a written explanation request and a decision within 1 month of finding out and 6 months of the breach. A labor dispute body can order reinstatement, pay for the time out (up to a year) and damages.
Overtime beyond the caps
Overtime without written consent, outside the law’s exceptions, or beyond 180 hours a year without a collective agreement, breaches the Labor Code: €240 to €880 for the manager.
Minimum wage missed
Paying less than €1,153 gross a month for full-time work in 2026 (€1,245 from January 1, 2027), or only the minimum wage for work that needs qualifications, breaches the Labor Code: €240 to €880 for the manager.
Leave swapped for money
Annual leave can’t be paid out instead of taken, except when employment ends or, from November 1, 2026, for leave beyond two years’ worth where a national, sector or territorial collective agreement allows it. Any other payout breaches the Labor Code: €240 to €880 for the manager.
Not sure where you stand? Our HR Compliance Audit gives you a structured review of your HR compliance risk in Lithuania, with a clear action plan.
Key Sectors in Lithuania
Lithuania’s leading export sectors in 2025, based on Eurostat trade data.
Hiring in Lithuania: Your Questions Answered
Questions companies ask before they hire in Lithuania.
Do we need written employment contracts in Lithuania?
Yes. Employment contracts must be in writing, in Lithuanian, plus a language a foreign employee understands. Before work starts, you give the employee written information on the main terms and notify Sodra, the State Social Insurance Fund Board, as a rule at least one working day ahead. Without a written contract or the Sodra notice, the work counts as illegal work. We draft contracts that comply with Lithuanian law.
Is there a probation period in Lithuania?
Only if the contract sets one. Probation lasts up to 3 months, not counting absences, and the parties can’t extend it. From November 1, 2026, employees paid at least twice the national average wage can have up to 6 months. Either side can end it during probation with 3 working days’ written notice, without severance. We make sure your contracts reflect these rules.
How much does an employee in Lithuania cost on top of salary?
Non-wage costs, such as employer social contributions, add about 6% on top of gross wages in Lithuania (Eurostat, 2025). Since 2019, employees pay most social insurance and health contributions from gross pay: 19.5% in 2026. Employers pay 1.77% as a rule, more for fixed-term contracts and riskier work. Our Compensation & Benefits Strategy builds a reward framework aligned with Lithuanian law, market data and internal equity.
How many hours can staff in Lithuania work?
Full time is 40 hours a week. As a rule, work including overtime can’t exceed 48 hours a week on average, 12 hours a day or 60 hours in 7 days. Overtime needs written consent, with a few exceptions, and is capped at 8 hours a week, or 12 with consent, and 180 a year unless a collective agreement allows more. We structure work schedules that comply and still leave room for flexibility.
What happens when an employee in Lithuania is off sick?
You pay the first 2 days of each sick leave that fall on scheduled workdays, at 62.06% to 100% of the employee’s average pay. From day 3, Sodra pays sickness benefit of 62.06% of the employee’s compensated earnings, as long as they meet the insurance conditions. By law, your share ends after day 2. We put clear sick leave policies in place.
How much paid leave do employees in Lithuania get?
At least 20 working days a year on a five-day week, or 24 on a six-day week. Under-18s, employees with disabilities and some single parents get 25, and jobs on a government list up to 41. Lithuania also has 16 public holidays. We keep you compliant with leave entitlements and help you offer a competitive benefits package.
Is it really that hard to terminate employees in Lithuania?
It’s structured, not impossible. Without the employee’s fault, you need a legal reason, such as redundancy, 1 month’s notice (2 weeks in the first year), doubled or tripled for protected groups, and 2 months’ average pay as severance (half a month in the first year). Conduct dismissals need a written explanation request first. Private employers can also dismiss at will, from November 1, 2026 for a justified reason, with 3 working days’ notice and 6 months’ pay or more. We guide you through every step.
Can we put everyone on fixed-term contracts in Lithuania?
No. Fixed terms for work of a permanent nature can’t exceed 20% of all your employment contracts. As a rule, fixed terms for the same job can’t exceed 2 years in total, or 5 years across different jobs, and longer ones count as open-ended. Replacing an absent employee is an exception. We make sure your fixed terms meet these rules.
Do collective agreements apply to us in Lithuania?
Only if one binds you: a company agreement you sign, a national, regional or sector agreement signed by an employers’ organization you belong to, or one the labor minister extends to your sector. They cover union members, unless staff approve a company agreement for everyone or, from November 1, 2026, a higher-level agreement’s parties extend some terms to all staff of member employers. Sector agreements can depart from some Labor Code rules, but not from the minimum wage. We keep you compliant with any agreement that applies.
Do we need employee representatives in Lithuania?
From an average of 20 employees, you must have a works council set up, unless a trade union with more than a third of your staff as members takes over its role. Below 20, staff can elect an employee trustee with the same rights. You must inform and consult them on key decisions, such as your pay system, and agree redundancy selection criteria with them. We guide you in working with employee representatives.
What does pay transparency mean for us in Lithuania?
Lithuania’s Labor Code implements the EU Pay Transparency Directive, mostly from June 7, 2026. Job ads must, as a rule, state the base pay or its range, and you can’t ask candidates about their pay history. Without a pay system in a collective agreement, you must adopt one with job groups based on objective criteria by December 31, 2026. From 2028, Sodra publishes pay gap data for employers with 150 or more insured employees, and 100 to 149 from 2031. Our Compensation & Benefits Strategy covers EU Pay Transparency readiness.
What happens if we fail a labor inspection in Lithuania?
The State Labor Inspectorate (VDI) checks compliance. Most labor law breaches bring fines of €240 to €880 for the employer’s manager, €900 to €1,400 on a repeat, and €1,000 to €2,000 if a breach could have caused an accident. Illegal work costs the employer 3 to 12 minimum monthly wages per worker, and the manager €1,500 to €5,000, up to €6,000 on a repeat. We conduct regular compliance audits so your documentation is ready for inspection.
Plan Your Lithuanian Expansion With an HR Specialist
Tell us about your plans for Lithuania, whether it’s your first hire or a growing team. We’ll tell you honestly what we see.
- Lithuania and 27+ European countries, through one team.
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