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Simplify Payroll, Compliance & Hiring in Lithuania with Us

How We Help You with Payroll & Compliance in Ghana

Whether you're hiring your first employee or managing hundreds, our team helps you navigate local laws and execute flawless payroll.

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Payroll Outsourcing

Accurate, compliant payroll processing—including local tax filings, reporting, and payslip delivery.

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Employer of Record

Hire employees without a legal entity. We act as legal employer and handle all compliance responsibilities.

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Payroll Software – Lithuania

Global payroll software built for complexity—configurable, compliant, and integrated with your HR stack.

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Compliance Services

Tax and statutory support for onboarding, terminations, and filings in
Lithuania
, standalone or bundled.
Customize your Payroll Solution

Lithuania at a Glance

Whether you're hiring your first employee or expanding an existing team, understanding the local employment landscape is essential. From visa requirements and statutory benefits to payroll taxes and regulatory oversight, this section provides a practical overview of what employers need to know to stay compliant and operate effectively in 

Lithuania
Work Permits & Visas
  • EU/EEA and Swiss nationals may work in Lithuania without a permit.
  • Non-EU/EEA nationals require a work permit or combined work & residence permit.
  • Work permits typically valid for 1–2 years; renewable
  • Employers must prove no suitable local/EU candidate is available before hiring third-country nationals (labour market test).
  • Highly qualified specialists may apply for EU Blue Card (valid up to 3 years, renewable).
  • Short-term work up to 90 days possible with simplified notification procedure.
  • Residence permits required for long-term employment; temporary residence permits usually granted for up to 2 years, permanent after 5 years.
Payroll
  • Payroll Cycle: Monthly.
  • Income: Salaries, overtime, bonuses, allowances (e.g., housing, leave).
  • Employer Contributions: 1.45%–2.71% social security (higher for fixed-term contracts), Guarantee Fund 0.16%, Long-Term Employment Fund 0.16%.
  • Employee Contributions: 19.5% (incl. 6.98% health) up to €126,532/year; 6.98% on income above.
  • Benefits in Kind: Life insurance, voluntary health insurance, and pension contributions may be covered by employer.
  • Minimum Wage: €1,038/month or €6.35/hour.
  • Employment Contracts
Employment Contracts
  • Probation: Max 3 months for fixed-term contracts.
  • Working Hours: 40 hours per week.
  • Overtime Pay: 1.5× hourly rate; 2× on rest days; 2.5× on holidays.
  • Notice Periods:
  • Dismissal for cause: ~3 days.
  • Redundancy: 2 weeks–3 months depending on service (up to 3 months for 5+ years).
  • Probation termination: 3 days.‍
  • Resignation: 2 weeks (3 days for valid reason). Severance: 0.5–5 months’ salary depending on service (up to 20+ years). Termination Grounds: Mutual agreement, expiry of contract, redundancy, misconduct, incapacity, or liquidation.
Employee Benefits
  • Social Security: Funded by SODRA, covers pensions, health, sickness, maternity/paternity, and unemployment.‍
  • Health: Provided through SODRA.‍
  • Workers’ Compensation: Employer-funded insurance for accidents/occupational disease.‍
  • Annual Leave: 20 paid days/year minimum. After 10 years’ service: +3 days; additional 1 day every 5 years thereafter.‍
  • Sick Leave: First 2 days paid by employer (≥62.05% salary); from day 3, paid by SODRA.‍
  • Maternity Leave: 126 days (70 before, 56 after birth). Extended to 140 days for complications/multiple births. Paid at 77.58% by SODRA.‍
  • Paternity Leave: 30 days within 3 months (6 months for multiples). Paid at 77.58% by SODRA.‍
  • Public Holidays: 14 paid national holidays.
Tax Overview
  • Tax Year: Jan 1 – Dec 31.
  • Residents: Permanent residents, those with economic/social ties in Lithuania, or present ≥183 days/year (or 280 over successive periods with ≥90 days in one). 
  • Non-Residents: Taxed only on Lithuanian-sourced income.
  • System: Progressive — 20% up to €126,532; 32% above.
  • Taxable Income: Employment earnings, bonuses, allowances, stock options, dismissal compensation, gratuities, plus business, rental, dividend, and investment income.‍
  • DTAs: Lithuania has multiple double tax treaties.
Personal Income Tax
Lithuania — Personal Income Tax Rates (2025)
Annual Taxable Income (EUR) Rate
Up to €126,532 20%
Above €126,532 32%

Full Country Guide

How We Help You with Payroll & Compliance in Ghana

Want the complete PDF guide for

Lithuania

? We share detailed country guides covering payroll, tax, and compliance — and we send new updates regularly. Just send an email to solutions@praxima.com, and we’ll send it straight to your inbox.

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Lithuania

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Why Global Companies Trust Us for Lithuania Payroll

Trusted Payroll Solutions Backed by Decades of Experience

With over 30 years of experience managing payroll and compliance across continents, we’re a trusted partner to enterprises in

Lithuania

and beyond.

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Support

Experts with deep local knowledge guide you through every step—onboarding, payroll, compliance—ensuring smooth operations in

Lithuania
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Trust

Global enterprises and Fortune 500s rely on us for consistent, compliant payroll delivery across complex, multi-country environments

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Scalable

Our solutions adapt as you grow, whether you're hiring your first local employee or scaling an international team

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Compliance

Stay ahead of legal changes. We ensure your payroll and employment practices remain fully compliant with

Lithuania

's laws

See Why Leading Companies Choose Us

Let’s Talk Lithuania

Whether you need Payroll Outsourcing, Employer of Record services, or advanced Payroll Software, our experts are here to help you find the right solution. Contact us today for support with payroll, compliance, and hiring in

Lithuania
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