Employing in Lithuania
An employer of record, sometimes known as an international PEO can help you quickly hire and onboard workers in Lithuania – often with just two weeks’ notice. Establishing your own local entity without risk and saving costs, this type of service makes an EOR in Lithuania worth checking out!
One of the three Baltic States (alongside Latvia and Estonia), Lithuania is known for its beautiful baroque architecture, local beers, shores lined with amber and basketball — it’s like a second (if not the first!) religion in the country.
Located in central Europe, Lithuania offers easy travel between other EU states. Since declaring itself an independent state in 1990, the nation has been making the transition from an industrial economy to a knowledge-based one that focuses on high-value products and services. Today, Lithuania offers a diverse economy and a vibrant financial sector, with many international banks doing business in the country.
In recent years, the country has also excelled in IT and communications technologies — and Lithuania is now one of the leading European nations for biotechnology, communications and IT. Perhaps surprising for such a small country, Lithuania is also one of the most efficient internet providers in Europe. Locals are very proud of the cheap, fast and reliable internet that is accessible all over the country.
An overview of employing in Lithuania
An overview of the main benefits
The statutory pension contribution is 8.72% and will be withheld from an employee’s salary each month as part of the social security contributions. In addition to the statutory amount, employees can participate in an optional pension accumulation plan. This will additionally be withheld from an employee’s monthly salary based on the rate they select:
- 2.4% pension accumulation plan (equating to a total monthly social security contribution of 21.9% of gross monthly earnings)
- 3.0% pension accumulation plan (equating to a total monthly social security contribution of 22.5% of gross monthly earnings)
To access the old-age pension in Lithuania, employees must have contributed consistently for at least 15 years and be 64 years old (male) and 63 years old (female). Lithuania plans to push the retirement age up to 65 years for men and women by 2026.
Holiday & Leave
Keen to engage an EOR in Lithuania? At TopSource Worldwide, we work with local experts to help you navigate the various admin and cost obstacles you may come across along your expansion journey
To find out how we can help your business with our employment solutions, contact us today.
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