How do you hire an employee in Lithuania in 2026?
Lithuania caps probation at 3 months, and the Labour Code bans extending it by agreement. Inside that window either side can end the contract on 3 days written notice, with no severance. Set the trial terms in the contract before day one or you lose the option.
· Lithuania guide
Illustration · Vilnius, Lithuania
The Lithuania hire process has five steps. Offer letter, right-to-work check, written employment contract, Sodra registration, first payday.
Every employee needs a signed written contract before the first day of work. Probation is capped at 3 months. The law bans extending it by agreement (Labour Code Art. 36).
Once the trial passes, employer notice runs 1 month, or 2 weeks when service is under a year. Statutory paid leave is 20 days and there are 14 public holidays.
What does the end-to-end Lithuania hire process look like?
Five steps take you from accepted offer to first payslip. Offer letter, right-to-work check, written contract, Sodra registration, first payday.
The written contract must be signed before the employee starts. The Sodra registration must be filed at least one working day before the start date.
| Step | What happens | Owner | Timing |
|---|---|---|---|
| 1. Offer letter | Written offer with role, gross salary, start date, working hours, and trial-period terms | Client / Teamed drafts | Same day after verbal accept |
| 2. Right-to-work check | Confirm EU/EEA status, or verify a residence and work permit for third-country nationals before the start date | Teamed | Before the employee starts |
| 3. Written employment contract | Signed bilingual contract covering all terms required under the Labour Code (Darbo kodeksas) | Teamed (legal employer) | Before day one |
| 4. Sodra registration | Register the employee with Sodra (State Social Insurance Fund Board) and notify the State Tax Inspectorate (VMI) | Teamed | At least 1 working day before start |
| 5. First payday | First payslip issued; wage paid at least twice a month, and no later than ten working days after month-end, with income tax and Sodra contributions withheld | Teamed | End of first payroll month |
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Issue the offer letter
Send a written offer the same day as verbal acceptance. Include role, gross salary, start date, weekly hours of 40 hours, and a trial period of up to 3 months.
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Complete the right-to-work check
Confirm EU, EEA, or Swiss status by collecting a passport or ID copy, or verify the residence and work permit for third-country nationals before the employee starts. Retain copies of all documents.
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Issue the written employment contract
The signed written contract must be in place before day one, normally bilingual and governed by Lithuanian law. Teamed's standard contract covers all Labour Code requirements. Clients choose commercial terms; Teamed signs as the legal employer.
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File the Sodra registration
Register the employee with Sodra at least one working day before the start date, and set up the State Tax Inspectorate details for income tax. Collect bank details and record the health and safety induction.
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Issue the first payslip and file deductions
Run the first payroll at the end of the first calendar month. Wages are paid at least twice a month. Withhold income tax and the employee Sodra contribution, remit the employer Sodra rate, and the employee is on the payroll record.
What must a Lithuania offer letter include?
The offer letter is not the binding contract. It is the document the candidate weighs before they commit.
Include role title, reporting line, start date, gross monthly salary, working location, weekly hours of 40 hours, and a trial period of up to 3 months with 3 days notice during it.
Three traps to avoid in Lithuanian offer letters:
- Promising to extend the trial later. Probation runs up to 3 months, and the Labour Code bans extending it by agreement. An offer that hints the trial can be stretched sets up a dispute you cannot win.
- Quoting net pay instead of gross. Lithuanian employees carry a 19.5% social and health insurance deduction plus income tax. Quote the gross figure so the take-home expectation is honest from the start.
- Leaving the contract language vague. The binding contract is governed by Lithuanian law and is normally bilingual. Say in the offer that a written Lithuanian-law contract follows, so nothing in the offer reads as the final terms.
Teamed's standard Lithuania offer letter template covers all required ground and lines up with the Labour Code. Clients choose the commercial terms. Teamed holds the legal-employer position and issues the final contract.
Lithuania right-to-work and work-permit checks
EU, EEA, and Swiss nationals can start work in Lithuania without a permit. Third-country nationals need a residence permit and, in most cases, a work permit before day one.
Employing a third-country national without the right authorisation exposes the employer to fines and a ban on future foreign hires.
EU, EEA, and Swiss nationals
Citizens of EU and EEA member states and Switzerland have the right to work in Lithuania without a permit. The employer keeps a copy of the passport or national ID as a standard identity record. Anyone staying beyond three months declares their place of residence to the Migration Department.
Third-country nationals
Every third-country national needs a legal basis to work before starting. The common route is a national (D) visa or a temporary residence permit tied to employment, applied for through the Migration Department (Migracijos departamentas). Many roles also require a separate work permit from the Employment Service (Uzimtumo tarnyba), unless the role appears on the shortage-occupation list or the person qualifies for a fast-track route such as the EU Blue Card. Processing takes several weeks, so start early.
The Labour Code governs the employment relationship in Lithuania, including the written contract, trial period, notice, and pay rules. Every employer must follow it from the first day of employment.
Source: Seimas of the Republic of Lithuania: Labour Code (Darbo kodeksas)
Ongoing permit renewals
Residence and work permits are time-limited. Teamed tracks every expiry date and alerts the employee and client ahead of the renewal deadline so no one lapses out of status.
The Lithuania written employment contract: what must it contain?
Lithuania requires a signed written employment contract before the employee starts work. A verbal offer is not enough.
The contract is the binding document and is governed by the Labour Code. The offer letter is not binding.
What a Lithuania written employment contract must cover under the Labour Code (Darbo kodeksas):
- Names and details of both the employer and the employee
- Start date of employment
- Job function or position
- Place of work
- Gross salary and how it is calculated
- Pay frequency: wages are paid at least twice a month, or once monthly if the employee asks
- Working hours, normally 40 hours a week over 8 hours a day
- Annual paid leave of at least 20 days on a five-day week
- Trial period, if agreed, up to 3 months with 3 days notice during it
- Notice for ordinary dismissal: 1 month, or 2 weeks when service is under a year
Lithuania does not use a single named statement like the UK Section 1 statement or Germany's Nachweisgesetz. The requirement is a written contract that carries the substantive terms above, normally drawn up in Lithuanian and the employee's working language. Teamed's standard Lithuania contract meets every Labour Code requirement. Clients choose commercial terms; Teamed signs as the legal employer.
Key source: Labour Code (Darbo kodeksas) via the Seimas register.
Onboarding admin in the first week
Sodra registration comes first, filed at least one working day before the start date. Then contract signing, tax setup, and bank details.
Teamed handles the statutory registrations. The client handles the operational side.
| Onboarding task | Who does it | Day |
|---|---|---|
| Sodra (State Social Insurance Fund Board) registration filed | Teamed | At least 1 working day before start |
| Written employment contract signed | Employee and Teamed | Before day one |
| Right-to-work check completed | Teamed | Before start (permit for third-country nationals) |
| State Tax Inspectorate (VMI) details set up for income tax | Teamed | Days 1 to 5 |
| Bank account details collected for payroll | Teamed | Days 1 to 5 |
| Health and safety induction recorded | Teamed and client | Day 1 |
| Equipment and system access | Client | Days 0 to 1 |
| Manager introduction and first-week plan | Client | Days 0 to 7 |
| 30-60-90 day plan documented | Client (manager) | Days 1 to 14 |
How does Teamed handle Lithuania employment for you?
Teamed becomes your legal employer of record in Lithuania for from $599 per employee per month, with zero FX mark-up in any currency.
The Labour Code, Sodra contributions, and VMI income tax all run on one platform.
Real HR and legal experts handle your Lithuania hires, from the first offer letter through every monthly Sodra and income tax filing. An actual person, not a chatbot or a pooled queue. There is no setup fee and no exit fee. Employer cost passes through at cost, itemised on every invoice, so you see the wage, the 1.77% employer Sodra rate, and the Teamed fee on separate lines.
EOR payroll, contractor onboarding, and entity setup all live on one platform. A Lithuania contractor who converts to direct employment keeps their record, with no re-onboarding. Run the Crossover Calculator to see when your Lithuania headcount is ready to graduate to your own entity. EOR is the right model until it isn't, and Teamed tells you when that point arrives. Start from the Lithuania hiring overview; each guide here takes one layer of Lithuanian employment law.
Key sources: Labour Code (Seimas register), Sodra contribution rates, and VMI income tax.
Frequently asked questions
How long does it take to hire someone in Lithuania through Teamed?
Teamed can onboard an EU, EEA, or Swiss national within a few business days once the offer is accepted. The written contract must be signed before day one, and the Sodra registration is filed at least one working day before the start date. Third-country nationals who need a residence and work permit must have it in place before starting, which adds several weeks depending on the route and the Migration Department queue.
What is the probation period in Lithuania and can it be extended?
The trial period cannot exceed 3 months under the Labour Code (Art. 36). It cannot be extended by agreement between the parties. During the trial, either side can end the contract on 3 days written notice, and no severance is due when the employer ends it for unsatisfactory results.
What notice period applies after probation ends in Lithuania?
For ordinary dismissal without employee fault, the employer gives 1 month notice once the trial has passed. When the employee has been with the employer for under a year, the notice is 2 weeks. Notice is doubled or tripled for protected groups such as pregnant employees and those close to pension age. Severance is 2 months average pay after a year of service and 0.5 months below a year.
What does a Lithuania employee pay in tax and social insurance?
Employees carry a 19.5% Sodra social and health insurance deduction, which covers pension, sickness, maternity, and health cover. On top of that, income tax starts at 20% under the progressive system that took effect in 2026, rising for higher earners. Quote gross salary in the offer so the take-home expectation is clear.
What is the minimum annual leave for a Lithuania employee?
The minimum paid annual leave is 20 days on a standard five-day week, with extra days for employees raising children, minors, and people with disabilities. Lithuania also has 14 public holidays a year. Maternity leave runs 126 days, split before and after the birth.
Is there a 13th-month salary in Lithuania?
No. Lithuanian law does not require a 13th or 14th month payment. The Labour Code wage rules set minimum pay, at least twice-monthly payment, and bonus rules, but no annual extra-month entitlement. Any year-end bonus is something the employer chooses to offer, not a statutory right.
Lithuania's trial period trips up companies that hire on a handshake. The cap is firm, the contract has to exist before day one, and the law will not let you stretch the trial later. Get the written contract and trial terms signed before the start date or you lose the protection the trial was meant to give you.
Lithuania gives you a trial window of up to three months, and the law will not let you extend it.
So the written contract has to set the terms before day one, with Sodra registration filed the working day before.
Get the contract right at the start and the rest of the year runs quietly.
