Lerio — Contractor Ops Agent

Partner with Lerio to keep employment in Lithuania legally sound — contracts, payroll and statutory benefits handled against the live rule set.

CurrencyPayroll

All compensation is paid in EUR (€). Cross-border funding is converted at the daily rate on the pay date.

Working hoursSchedule

The standard week is 40 hours / week. Hours beyond the statutory limit are treated as overtime and typically paid at a premium.

Paid leaveTime off

Statutory time off is 15 holidays / year, in addition to nationally observed public holidays.

Payment frequencyCadence

The most common payment frequency is monthly. By law, the default frequency is bimonthly but can be amended to monthly based on the contract between company and employee.

Minimum wageFloor

The statutory minimum is €6.35. Lerio blocks any contract drafted below the floor.

Tax yearCalendar

The Lithuania tax year runs Jan – Dec. Year-end filings are prepared automatically.

Every figure below is modelled, not memorised — and traceable to its source via the calculator on the right.

Employee taxes

withheld from gross

Employee Taxes

withheld from gross

Personal Income Tax (GPM)

Description

Tax Rate (%)

Applied to gross income up to 83,237.40€

20%

Applied to gross income 83,237.40€ - 138,729€

25%

Applied to gross income above 138,729€

32%

Pension Social Insurance (PSD)

Description

Tax Rate (%)

Applied for gross annual income of 138,720€

8.72%

Health Insurance (SD)

Description

Tax Rate (%)

Applied to all gross income

6.98%

Sickness Insurance

Description

Tax Rate (%)

Applied for annual gross income up to 138,720%

1.99%

Parental Insurance

Description

Tax Rate (%)

Applied for gross annual income up to 187,720€

1.81%

Employer taxes

on top of gross

Employer Tax

on top of gross

Accident and occupational insurance

Description

Tax Rate(%)

Applied to all gross income

1.45%

Guarantee Fund

Description

Tax Rate (%)

Applied to all gross income

0.16

Long-term Employment Fund

Description

Tax Rate (%)

Applied to all gross income

0.16%

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Rates are indicative and depend on individual circumstances. Run a salary through the calculator for a full breakdown, or ask the compliance agent for a citable figure.

You can hire in Lithuania through Lerio’s Employer of Record — no local entity required.

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Lithuania, part of the European Union and the Eurozone, has become an increasingly attractive destination for global companies due to its skilled workforce, competitive labor costs, and strong digital infrastructure. With a thriving technology sector and growing industries in finance, logistics, and manufacturing, Lithuania offers a strategic gateway to both Western and Eastern European markets.Expanding into Lithuania requires compliance with local labor laws, tax regulations, and employment standards. Establishing a legal entity can be time-consuming and costly. An Employer of Record (EOR) in Lithuania simplifies this process by acting as the legal employer, managing HR, payroll, and compliance while allowing client companies to directly manage employees’ day-to-day tasks.<h3 class="bn-inline-content">Key Benefits of Using an EOR in Lithuania</h3><ul><li>Faster Market Entry – Hire employees in Lithuania without waiting to set up a local entity.</li><li>Legal Compliance – Navigate Lithuania’s labor code, EU directives, and tax obligations with ease.</li><li>Cost-Efficient – Avoid expenses tied to company incorporation, accounting, and local HR infrastructure.</li><li>Payroll Management – EOR ensures accurate payroll, tax withholdings, and social contributions.</li><li>Access to Talent – Gain access to a highly educated, multilingual workforce.</li><li>Risk Mitigation – Reduce risks related to employee misclassification or non-compliance with local law.</li></ul><h3 class="bn-inline-content">How EOR Works in Lithuania</h3>An EOR in Lithuania becomes the official employer and is responsible for:<ul><li>Drafting and maintaining employment contracts compliant with Lithuanian law.</li><li>Managing monthly payroll, including income tax (GPM), social security (Sodra), and pension contributions.</li><li>Administering statutory benefits such as sick leave, parental leave, and paid time off.</li><li>Ensuring compliance with working time regulations, notice periods, and termination laws.</li><li>Providing HR support and managing local employment documentation.</li></ul>Meanwhile, the client company directs the employee’s work, goals, and performance.<h3 class="bn-inline-content">Compliance and Employment Regulations in Lithuania</h3><ul><li>Working Hours: Standard full-time is 40 hours per week (8 hours per day). Overtime is limited and must be compensated.</li><li>Minimum Wage (2025): €924 per month gross (~€5.33 per hour for a 40-hour workweek).</li><li>Paid Leave: Employees are entitled to at least 20 working days of paid annual leave per year.</li><li>Sick Leave: Paid partly by the employer (first 2 days) and partly by the state thereafter.</li><li>Public Holidays: 15 paid public holidays per year.</li><li>Parental Leave: Up to 2 years of parental leave, with state benefits.</li><li>Probation Periods: Typically up to 3 months, extendable in some cases.</li><li>Notice Periods: Range from 2 weeks to 3 months depending on service length.</li><li>Employer Contributions: Employers must contribute approximately 1.77%–2.49% of gross salary for social security, in addition to employee-paid contributions.</li></ul><h3 class="bn-inline-content">Why Choose an EOR in Lithuania?</h3><ul><li>Quickly expand into a fast-growing EU economy.</li><li>Stay compliant with Lithuanian labor laws, payroll, and taxation.</li><li>Hire local talent in tech, finance, and professional services sectors.</li><li>Avoid the costs and delays of entity setup.</li><li>Focus on your business operations while the EOR manages HR, payroll, and compliance.</li></ul>An Employer of Record in Lithuania is the most efficient solution for businesses looking to expand into the Baltic region, enabling compliant hiring, reduced risks, and fast access to skilled professionals.

What Lerio handles

✓

Compliant local contract

Drafted to Lithuania labour law, in Lithuanian and English, with the statutory clauses pre-filled.

✓

Onboarding & payroll setup

Tax registration, social-security enrolment and the first pay cycle, configured in EUR.

✓

Ongoing compliance

Document expiries, minimum-wage changes and Europe regulatory updates watched continuously.

✓

Statutory benefits

Leave, public holidays and mandatory contributions administered automatically.

Typical timeline

via EOR

Day 0

Offer accepted. Candidate details enter Lerio; the contract drafts itself from the Lithuania template.

Day 1–3

Contract signed. Local registrations and benefit enrolment begin in parallel.

Day 3–7

Ready to work. Equipment, access and the first payroll run are scheduled.

Monthly

Steady state. Payroll, filings and compliance run on autopilot with a human approval gate.

Statutory benefits in Lithuania, plus the supplemental coverage teams usually add.

Mandatory

✓

Health insurance

✓

Pension

✓

Education after 5 years of employment

✓

Unemployment insurance

Commonly added

optional

✓

Supplemental coverage

<h3 class="bn-inline-content">Statutory / Mandatory Benefits in Lithuania</h3>Lithuanian labor law and social security regulations provide a solid framework for employee protections:<ul><li>Paid Annual Leave – Minimum 20 working days per year; additional leave may be granted based on age, tenure, or collective agreements.</li><li>Public Holidays – 12 national holidays per year.</li><li>Working Hours – Standard 40 hours/week, 8 hours/day; overtime must be compensated.</li><li>Paid Sick Leave –<ul><li>First 2 days: unpaid (employer discretion).</li><li>From day 3 onward: paid via social insurance system (Sodra) at 62.7–100% of salary, depending on duration and illness type.</li></ul></li><li>Maternity Leave – 126 calendar days paid at 100% of average wage; can be extended for multiple births.</li><li>Paternity Leave – 30 calendar days paid for fathers, within 2 months of child’s birth.</li><li>Parental Leave – Up to 370 days (shared between parents) with partial pay (based on previous earnings).</li><li>Childcare Leave – Unpaid leave possible until the child reaches 3 years, job-protected.</li><li>Severance Pay – Mandatory for redundancies: usually 1–3 months’ salary, depending on tenure and legal requirements.</li><li>Social Security Contributions – Employers contribute approx. 31.18% of gross salary (pensions, health insurance, unemployment, sickness).</li><li>Occupational Health & Safety – Employers must ensure workplace safety, provide medical exams, and follow safety regulations.</li></ul><h3 class="bn-inline-content">Common Employer-Provided Benefits in Lithuania</h3>Employers, especially in IT, finance, and multinational companies, typically offer additional perks:<ul><li>Private Health Insurance – Top-up coverage beyond the public system, often including family members.</li><li>Multisport / Gym Cards – Popular wellness benefit.</li><li>Performance Bonuses – Annual or project-based incentives.</li><li>Flexible / Remote Work – Hybrid and fully remote arrangements increasingly common.</li><li>Professional Development – Training budgets, certifications, and language courses (English, Russian, German).</li><li>Meal Vouchers / Subsidies – Prepaid meal cards, office lunches, or vouchers.</li><li>Transport / Commuting Allowances – Fuel reimbursement, public transport passes, or parking.</li><li>Extra Paid Leave – For birthdays, volunteering, long service, or company-specific events.</li><li>Supplementary Pension Plans – Voluntary employer contributions to private pension funds.</li><li>Life & Disability Insurance – Often offered for key employees or managerial positions.</li><li>Stock Options / Equity Plans – Typically in startups and multinational tech companies.</li><li>Employee Discounts & Perks – Corporate partnerships with retailers, gyms, or cultural institutions.</li><li>Relocation Support – Housing, travel, and visa assistance for international hires.</li></ul>

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Lerio benchmarks each package against live Europe data — open the comp agent to see where an offer lands.