As your company grows in a new country, you’ll have to learn about local employee expectations and how to build an attractive benefits package to attract and retain talent. As you develop a benefits plan in Lithuania, you’ll want to start by researching economic conditions and best practices in the region.
At G-P, our experts truly understand Lithuania’s compensation laws and benefits requirements. We’ll work hard to source the best benefits for your team, and we can mitigate the risk of noncompliance as the Lithuania Employer of Record (EOR). When you choose us for Lithuania compensation and benefits support, you can focus your time and resources on growing your company.
Lithuania compensation laws
As of January 1, 2026, the minimum monthly wage in Lithuania is €1,153 (Gross/Before Taxes), minimum hourly payment is €7.05 (Gross/Before Taxes).
By law, the minimum wage can only be paid for unskilled work. If a role requires specific professional skills or qualifications, the salary must be higher than this minimum.
All employee compensation will need to be paid by transfer to the worker’s chosen account. Cash payments are no longer permitted and failure to comply will lead to administrative fines.
Guaranteed employee benefits in Lithuania
Every Lithuania benefits plan must meet all guaranteed provisions for companies to stay compliant. Lithuania-based employees should receive time off for the country’s 13 national holidays, plus 4 weeks of annual paid leave.
Lithuania offers generous maternity leave for expecting employees, varying from 28 to 126 calendar days. Maternity benefit equals 77.58% of the worker’s compensated salary and is paid as a lump sum for the entire leave.
Lithuania employee benefits management
Once you establish a compliant Lithuania benefits management plan, you have to figure out how to disburse those benefits to employees. It’s also important to include fringe benefits that will make candidates more excited about your open jobs. For example, performance-based bonuses are a common additional benefit that employees may expect.
Other common benefits include supplemental health insurance, a car allowance, a phone allowance, and a fitness allowance. Supplemental healthcare, in particular, is a benefit many employees look for. While Lithuania’s state plan is considered good, dental care is not included. If you are unable to source a private plan for your team members, you can also provide a stipend to help cover costs.
Restrictions for employee benefits and compensation
Your biggest restriction related to benefits and compensation is incorporation. Expanding to Lithuania the traditional way means you must set up a subsidiary before you can hire employees and provide compensation and benefits.
Instead, you can work with an EOR like G-P. With us, you don’t have to go through the lengthy subsidiary setup process, as you can leverage our global entity infrastructure to start hiring in minutes.
Partner with G-P to build your everywhere workforce.
As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading global employment platform is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.
Learn more about our platform and request a proposal today.
