Are you thinking about augmenting your team with Lithuanian talent? It could be a great choice. Lithuania’s knowledgeable workforce and affordable labor costs have made the country a goldmine for companies looking for overseas talent. 

To keep your company out of legal trouble and attract quality candidates from Lithuania, it’s wise to learn all about Lithuania labor laws. And that’s where this article will help. 

Read on as we share Lithuania’s mandatory and supplementary benefits to include in your employee benefits packages. 

An Overview of Lithuania Labor Law

You’ll find many Lithuania employment laws in the central document of the Republic of Lithuania Labour Code. All of the non-negotiable employee benefits and regulations are outlined there. In addition to the Labour Code, the following resources will be helpful to you: 

Feel free to browse the above sources to get a general idea of the labor situation in Lithuania. 

Mandatory Employee Benefits in Lithuania

The labor law in Lithuania focuses on Social Insurance benefits like maternity leave, paternity leave, annual leave, and more. There are also very defined policies concerning work time, rest periods, and more. We’ll explore these and more in the sections below.

Public Holidays

In Lithuania, workers are not allowed to work on the following 12 holidays per Lithuanian law: 

  • New Year’s Day (January 1)
  • Day of Re-establishment of the State of Lithuania (February 16)
  • Day of Re-establishment of Lithuania’s Independence (March 11)
  • Easter and Easter Monday — Western Church (movable)
  • International Labour Day (May 1)
  • Mother’s Day (First Sunday in May)
  • Father’s Day (First Sunday in June)
  • Dew (Rasos) and St John’s Day (June 24)
  • Day of the State — Coronation of King Mindaugas (July 6)
  • Assumption Day (August 15)
  • All Saints’ Day (November 1)
  • Christmas Days (December 25 and 26)

There are a few exceptions to this rule – you can read about them in Chapter XIV of the Labour Code under Article 162.

Annual Leave

Every Lithuanian is entitled to an annual leave lasting 20 working days. Ten of these working days must be taken in one go. And if the employee doesn’t take all of their leave for a year, any leftover days carry over into the next year. With 10 years of seniority at a single company, employees can take up to 3 days of extra leave.

Sick Leave

There is no set maximum for the number of days an employer can take for sick leave. If an employee is sick, they are allowed to take leave. The European Commission states employers have to pay for an employee’s first 2 days of sick leave (62.06 to 100% of the employee’s regular pay).

Social Security Contributions

You’ll need to register your Lithuanian employees with the SoDra, short for State Social Insurance Fund. 

Health Insurance

Lithuanian employees get free basic healthcare through a compulsory health insurance scheme. Employers are required to withhold 6.98% of the employee’s salary for their employee’s social insurance account. These contributions will cover basic medical care and treatments for the employee. 

Note: Vocational rehabilitation insurance falls under the health insurance benefit.

Pension

Lithuania’s pension system is managed through SoDra as well. Your Lithuanian workers are all entitled to receive a pension if they sign an employee contract and meet the below requirements: 

  • They are of the appropriate age – at least 64 years and 4 months for women and 64 years and 8 months for men. 
  • They have been contributing to their pension for at least fifteen years. 

In some cases, employers pay for these pension contributions, but they are usually paid by the employee. 

You can learn more about the pension scheme in Lithuania here. 

Severance Pay

The Lithuanian government has provisions surrounding severance pay in their labor code. Lithuanian workers are entitled to this benefit if they were terminated through no fault of their own and meet any additional requirements laid out in the law. See the below table to find out how much severance pay you’d be responsible for:

Length of Employment Severance Pay (in monthly average wages)
Less than one year 1 monthly average wage
1 to 3 years 2 monthly average wages
3 to 5 years 3 monthly average wages
5 to 10 years 4 monthly average wages
10 to 20 years 5 monthly average wages
Over 20 years 6 monthly average wages

See Article 140 of the labor code for more information.

Unemployment Benefits

Unemployment benefits are compulsory in Lithuania, and every national has the opportunity to pursue an income through this means if they are let go from a job. Of course, there are different stipulations that individuals have to meet for eligibility, including: 

  • They must have an unemployment insurance record spanning at least 12 months in the last 30 months. 
  • They are registered at the Employment Service. 

*This is not an exhaustive list of eligibility requirements. 

The employee will receive employment benefits for 9 months if they’re found to be eligible. They get 23.27% of their minimum monthly wage. 

To read more about unemployment benefits, read this Social Security resource. 

Maternity and Paternity Insurance

Female employees are allowed to take up to 126 days of maternity leave – 70 days before the birth and 56 days after the birth. The employer doesn’t pay this benefit; it is paid through social security at 77.58% of the employee’s typical wage. When births don’t go according to plan (complicated births) or are non-traditional (multiple births), two additional weeks should be granted.

Employees eligible for paternity insurance are entitled to receive 30 days of paternity leave at the same rate as the mother. The leave should be started at the time of the birth until the child is one month old.

The monetary benefits of paternity leave are provided through social insurance schemes. 

You can find more information about maternity and paternity leave in Article 179 of the Lithuanian Labour Law.

Guarantee Fund

The mandatory guarantee fund is intended to help Lithuanian citizens if the company they work for becomes insolvent. The employer contributes to this fund at a rate of 0.16% of the employee’s gross salary. 

Workers’ Compensation Insurance

Let’s say your employee gets hurt while on the job. They may need medical and monetary help to stay healthy and financially secure. That’s why Lithuania has workers’ compensation provisions in its labor law. It is designed to cover rehabilitation, medical expenses, and more. Employers are expected to contribute to this account – the actual amount may vary but typically falls between 0.16% and 1% of the employee’s gross wages.

Other Employment Aspects to Keep in Mind

Though work time and minimum wage are not technically benefits, they are important to your employee benefits plan. 

Work Time Limits

Per Chapter XIII of Lithuania’s labor code, Lithuanian employees should not work any longer than 40 hours per week, and each work day should be limited to 8 hours. When we factor in overtime, employees can work up to 48 hours per week. 

There are additional stipulations to be aware of – you can find more information in the actual labor code text. 

Minimum Wage

Lithuania’s minimum wage is €1,153 per month (2026). Employers must pay at least this amount. If they pay less, they must pay back the difference and may face administrative fines, which are higher for repeated violations.

Supplementary Benefits to Include in Your Employee Benefits Plan

Yes, there are many compulsory benefits employers must include in their employee benefits packages for Lithuanian employees. In addition to those benefits, consider including supplementary benefits – optional perks that could make your job opportunities more appealing to Lithuanian candidates. Here are some they would likely find attractive: 

  • Private health insurance to cover services that aren’t covered under the mandatory health insurance scheme. 
  • Mental health support in the form of health and wellness vouchers or free or reduced counseling. 
  • Flexible working hours to promote a more balanced life for your employees. 
  • Bonuses throughout the year for exceptional performance. 
  • Childcare subsidies for employees with children. 
  • Subsidies for transportation – most valuable for positions where extensive travel is required. 

When it comes to supplementary benefits, you have a lot of creative leeway. Get to know the Lithuanian people and what they want in an employment opportunity and tailor your benefits package accordingly. 

Additional Assistance is Available

Building an employee benefits plan is no easy endeavor, especially when you’re breaking into a new country. If you are having trouble putting your benefits package together, rest assured that you’re not alone and that there’s help out there. Reach out to the below individuals and business types if you get stuck: 

So, there you have it – everything you need to know about employee benefits in Lithuania. We trust that the information above has been helpful, enabling you to more easily sort through the country’s regulations. And we wish you the best in your efforts to grow and expand with international talent from Lithuania.