Working life country profile for Lithuania
This profile describes the key characteristics of working life in Lithuania. It aims to provide the relevant background information on the structures, institutions, actors and relevant regulations regarding working life.
This includes indicators, data and regulatory systems on the following aspects: actors and institutions, collective and individual employment relations, health and well-being, pay, working time, skills and training, and equality and non-discrimination at work. The profiles are systematically updated every two years.
‘Individual employment relations’ refers to the relationship between the individual worker and their employer. This relationship is shaped by legal regulation and by the outcomes of social partner negotiations over the terms and conditions. This section looks at the start and termination of the employment relationship and entitlements and obligations in Lithuania.
Requirements regarding an employment contract
According to the Labour Code, a person in Lithuania acquires full legal capacity in employment relationships when they reach the age of 16 years. However, certain work activities may be performed by minors who are 14 years old. Basic requirements regarding the recruitment of minors are set out in the Labour Code; the Law on Safety and Health at Work (Law No. IX-1672); and the schedule approving the procedure for the recruitment, work and vocational training of people under 18 years of age and conditions for the employment of children, approved by Government Resolution No. 518.
According to the Labour Code, an employer should ensure that an employee is allowed to work only upon signing an employment contract. When concluding an employment contract, the employer must introduce the person being employed to the conditions of their potential work, acts regulating their work that are in force in the workplace and OSH requirements, and obtain a signature to indicate their approval. Unless otherwise agreed by the parties, the employee must commence their work on the day following the conclusion of the employment contract.
In every employment contract, the parties must agree on the essential conditions of the contract, including the employee’s functions and place of work, and on the conditions of remuneration for work.
Dismissal and termination procedures
According to the Labour Code effective since 1 July 2017, an employment contract expires in any of the following circumstances:
when the contract is terminated by agreement between the signatory parties
when the contract is terminated on the initiative of one of the parties
when the contract is terminated at the employer’s will
when the contract is terminated without the parties’ will
upon the death of one party (natural person) to the contract
in accordance with the procedure established by the Minister for Social Security and Labour when the location of the employer (natural person) or employer representatives cannot be determined
on other grounds set out by the Labour Code and other laws
The new Labour Code provides for more possibilities for employers to dismiss employees than the previous code, for example providing for the quick termination of employment by giving three days’ notice and lower severance pay.
The new code also introduced shorter notices of termination, which can be served when there is no fault on the part of employees. The revised notice period is one month or two weeks when the duration of employment is less than one year (instead of the two months provided for in the earlier version of the code). The notice periods are twice as long for employees who are entitled to the statutory retirement pension within five years and three times as long for employees with a child under 14 or a child under 18 if they have a disability, and for employees with a disability and those who are entitled to the statutory retirement pension within two years.
Severance pay is calculated as follows. Upon the termination of a contract of employment at the employee’s initiative for substantial reasons (the illness or disability of the employee, the attainment of the old-age pension age, the long-term inactivity of the company or non-payment of the employee’s salary for two consecutive months), the employee will be paid a severance pay equivalent to two times their average wage or their average wage when they have been employed for less than a year (instead of two times their average wage in the version of the Labour Code in force before 1 July 2017). When employment is terminated at the employer’s initiative through no fault of an employee, the employee will be paid a severance pay equivalent to two times their average wage, irrespective of their length of service within the company, or 0.5 times their average wage when they have been employed for less than one year. These types of severance pay are considerably lower than the amounts set in the old Labour Code, where they varied from one to six times the average wage depending on the employee’s length of service. However, the Labour Code stipulates that the dismissed employee should also be paid a long-term service allowance through a procedure established by law, taking the employee’s continuous duration of employment at that workplace into account. The benefits are payable to all employees who satisfy established preconditions and who worked under employment contracts and were dismissed at the employer’s initiative on 1 July 2017 or later.
Furthermore, according to the new Labour Code (Article 59), an employer may (except in state and municipal institutions) dismiss an employee without providing a reason by giving three days’ notice and awarding a severance pay of at least six times their average wage. Certain limitations are applicable in this case; a contract of employment cannot be terminated on the ground of employee’s participation in proceedings against an employer accused of a violation of law, or on discriminatory grounds (based on, for example, gender, sexual orientation, race, nationality, marital or family status, intention to have a child/children).
Parental, maternity and paternity leave
In 2021, according to SDA data, 21,000 women were on maternity leave (in 2020, the number was 20,700); 16,100 people were on parental leave until their child reached 1 year of age (6.9% of them were men); and 19,500 were on parental leave from 1 year of age until their child reached 2 years of age (38.5% of them were men). In 2021, 14,700 men made use of paternity leave (until their child was 1 month of age) (in 2020, this number was 13,800). Between 2020 and 2021, men’s take-up of parental leave until the child reached 1 year of age decreased from 7.2% to 6.9%; and the take-up of leave from when the child reached 1 year of age until they reached 2 years of age decreased from 39.0% to 38.5%.
Statutory leave arrangements
| Maternity leave | |
| Maximum duration | 70 calendar days before childbirth and 56 calendar days after childbirth (in the event of complicated childbirth or the birth of two or more children, 70 calendar days). |
| Reimbursement | The woman is entitled to receive a maternity allowance if on the first day of maternity leave she has a maternity social insurance record of no less than 12 months during the previous 24 months. The maternity allowance in Lithuania is 77.58% of the beneficiary’s average gross wage. The average is calculated on the basis of the person’s insured income earned during 12 consecutive calendar months before the calendar month preceding the month in which the right to the allowance is acquired. The minimum monthly maternity allowance may not amount to less than six basic social insurance (BSI) payments valid in the quarter preceding the date the beneficiary becomes entitled to the allowance. In Q1 2023, the BSI payment in Lithuania amounted to €49 (in 2022: from January, €42; from June, €46). The minimum maternity allowance was €276 per month in Q1 2023; and €294 per month for those acquiring the right to receive the allowance in Q2 2023 or later. No ceiling is applied to the maternity allowance. |
| Who pays? | State Social Insurance Fund. |
| Legal basis | Law No. IX-110 on sickness and maternity social insurance of 21 December 2000. |
| Parental leave | |
| Maximum duration | Parental leave is granted until the child reaches 3 years of age. A parental leave allowance is paid for the period of childcare leave after the end of maternity leave until the child is 18 months or 24 months old (depending on the parents’ choice). |
| Reimbursement | A person is entitled to receive a parental leave allowance if they have a maternity social insurance record of no less than 12 months during the 24 months before the first day of parental leave. The amount of the parental leave allowance from the end of maternity leave until the child turns 18 months old is 60% of the allowance beneficiary’s gross wage, if the insured person chooses to receive this allowance until the child turns 18 months old. In this case, the amount of the allowance may not be higher than two times the average wage valid in the quarter preceding the date the beneficiary becomes entitled to the allowance. In Q1 2023, the maximum monthly parental leave allowance was approximately €2,144 before taxes (if the insured person chooses to receive this allowance until the child turns 18 months old). The minimum monthly parental leave allowance may not be less than six BSI payments valid in the quarter preceding the date the beneficiary becomes entitled to the allowance. The minimum maternity allowance was €276 per month for Q1 2023 and €294 per month for Q2 2023 or later. If the insured person chooses to receive a parental leave allowance until the child turns 24 months old, the amount of that allowance from the end of maternity leave until the child turns 12 months old is 45.0% of the beneficiary’s gross wage and until the child turns 24 months old is 30.0% of the beneficiary’s wage). In Q1 2023, the maximum parental leave allowance was approximately €1,608.30 per month in the first year and €1,072.30 in the second year (before taxes). If the insured person chooses to receive a parental leave allowance until the child turns 2 years old, in the second year fathers/mothers may work while in receipt of the allowance without any reduction thereof. From 1 January 2023, irrespective of the length of parental leave, both the child’s father and the child’s mother should take care of the child for at least 60 calendar days each, and these two months cannot be transferred to another family member. During the non-transferable months of parental leave, the allowance paid is 78% of the beneficiary’s gross wage. The maximum allowance during the non-transferable months cannot exceed two times the person’s average wage valid in the quarter preceding the date the beneficiary becomes entitled to the allowance (€2,787.80 before taxes in Q1 2023). If the father or mother fails to make use of the non-transferable months, the period of parental leave is reduced to 16 or 22 months, respectively. People receiving income from employment or any other benefits during the non-transferable months of parental leave are paid the difference between the childcare allowance and the income they receive. In all other months, employment income and/or benefits should not reduce the allowance received, provided that the sum of the allowance and additional income does not exceed 100% of the average salary based on which the childcare allowance was calculated. |
| Who pays? | State Social Insurance Fund. |
| Legal basis | Law No IX-110 on sickness and maternity social insurance of 21 December 2000. |
| Paternity leave | |
| Maximum duration | In Lithuania, men are entitled to paternity leave for the period from the date of the birth of a child until the child is one month old. The paternity leave can be granted at any time from the birth of a child until the child reaches the age of 1 year. |
| Reimbursement | A man is entitled to receive a paternity leave allowance if before the first day of the paternity leave he has a maternity social insurance record of no less than 4 months during the previous 24 months. The paternity allowance in Lithuania is 77.58% of the beneficiary’s gross average wage. The amount of the average wage is calculated on the basis of the person’s insured income earned during 12 consecutive calendar months before the calendar month preceding the month in which the right to the allowance was acquired. The minimum monthly paternity allowance may not be less than six BSI payments valid in the quarter preceding the date the beneficiary becomes entitled to the allowance. The minimum paternity allowance is €276 per month for Q1 2023 and €294 per month for Q2 2023 and later. The amount of the allowance may not be higher than two times the average wage valid in the quarter preceding the date the beneficiary becomes entitled to the allowance. In Q1 2023, this amount is approximately €2,787.80 before taxes. |
| Who pays? | State Social Insurance Fund. |
| Legal basis | Law No IX-110 on sickness and maternity social insurance of 21 December 2000. |
| Holiday leave | |
| Maximum duration | Employees are entitled to at least 20 working days (for those who work 5 days per week) or at least 24 working days (for those who work 6 days per week) of annual leave. If the number of working days per week is less or different, the employee must be granted leave of no less than four weeks. Leave is calculated in terms of working days. Holidays are not included in the duration of leave. Longer leave may be established by employment contracts, collective agreements or labour law provisions. The right to take one’s entire annual leave or part thereof (or to receive monetary compensation, if permitted by the Labour Code) is lost three years after the end of the calendar year during which the right to full annual leave is acquired, except for in cases where the employee is, in actuality, unable to take it. Annual leave cannot be replaced with monetary compensation except upon the termination of an employment relationship, when the employee is paid compensation for unused annual leave or part thereof. The limitations of this compensation are established in the Labour Code. |
| Reimbursement | Paid at the usual rate. |
| Who pays? | Employer. |
| Legal basis | Labour Code of 14 September 2016. |
Sick leave
In Lithuania, sickness allowances should be granted in accordance with Article 5(2) of the Law on Sickness and Maternity Social Insurance (Law No. IX-110) of 21 December 2000. Pursuant to Article 14 of this law, the amount of sick pay (sickness allowance) for the first two calendar days of sick leave is paid by the employer and should not be less than 62.06% or more than 100% of the employee’s average salary. After the first two days, the employee is entitled to a sickness allowance paid by the State Social Insurance Fund (Valstybinio socialinio draudimo fondas). The amount of sickness allowance paid by the fund from the third day should make up 62.06% of the average wage of the beneficiary.
A sickness allowance payable per month may not be less than 11.64% of the country’s average wage and cannot exceed two times the average wage (valid in the quarter preceding the month when temporary incapacity for work was established). In Q1 2023, the sickness allowance per day could not be less than €9.95 or more than €106.13 (for one month, the limits were €208.02 and €2,218.15, respectively).
In the event of sickness or trauma, the sickness allowance is payable until the employee regains their capacity to work or until the day on which the level of their capacity for work is established, or until their first day of participating in a vocational rehabilitation programme. In the event of dismissal from work, the sickness allowance is payable for no longer than five calendar days following the dismissal.
In accordance with the Labour Code, employers are prohibited from giving notice of the termination of an employment contract and dismissing from work an employee during a period of temporary incapacity for work, or during leave. If the employee becomes temporarily incapable of working or takes statutory leave during the period of notice, the expiry of the period of notice should be postponed until the end of the temporary incapacity for work or leave (Article 64).
Retirement age
In accordance with the Law on State Social Insurance Pensions (Law No. I-549), the retirement age for women in 2023 was 64 years. For men, it was 64 years and six months. The retirement age was increased annually from 1 January 2012 by four months per year for women and by two months per year for men. This trend will continue until the statutory retirement age of 65 years, as established in the aforementioned law, is reached in 2026.
