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Hiring in Lithuania
Background checks in Lithuania
Hire employees in Lithuania
Language in Lithuania
Corporate presence requirements and payroll setup in Lithuania
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Employer of record in Lithuania
Expanding into Lithuania presents foreign employers with significant opportunities—access to a skilled, multilingual workforce, a transparent legal environment, and a strong European market presence. However, navigating the nuances of local employment laws, tax obligations, and payroll compliance can be a challenge without local expertise. That is where working with an Employer of Record in Lithuania becomes a valuable solution.
An EoR in Lithuania allows companies to hire local talent without the need to establish a legal entity. The EoR becomes the legal employer on paper, handling all administrative responsibilities such as employment contracts, social security registration, income tax compliance, and adherence to Lithuanian Labour Code requirements. This model offers speed, efficiency, and full compliance, which is especially beneficial for companies testing the market or scaling flexibly.
From managing pre-employment background checks and ensuring proper employment classification, to meeting Lithuanian language requirements for documentation and employment contracts, the complexities can add up quickly. Employers must also comply with evolving local rules, such as upcoming laws mandating Lithuanian language use in customer-facing roles starting 2026, or reporting obligations related to pay equity and data protection.
Partnering with a global provider like CXC ensures that your workforce in Lithuania is hired quickly and compliantly. As your Employer of Record in Lithuania, CXC manages onboarding, payroll, tax, and statutory compliance while giving you the flexibility to focus on growth. Whether you are hiring permanent employees, part-time staff, or independent contractors, CXC provides the infrastructure and local expertise you need to succeed in this dynamic market.
Hiring in Lithuania
Lithuania offers a skilled, multilingual workforce and a well-regulated employment environment, making it an attractive destination for global companies expanding in the Baltics. To recruit successfully, employers must follow specific legal and cultural expectations. Hiring in Lithuania is a structured process, shaped by compliance with labour law, cultural norms, and an emphasis on transparency.
How to hire in Lithuania
Employers must begin with clear employment contracts, which are mandatory and must be in Lithuanian, or bilingual if agreed by both parties. Contracts should detail key elements such as role, salary (stated in EUR), working hours, benefits, and termination clauses. For fixed-term contracts, the standard duration is up to two years, extendable to five in specific cases. Probation periods, commonly lasting up to three months, must be explicitly included in the contract.
Compliance with anti-discrimination laws is critical. These prohibit discrimination based on gender, race, age, nationality, religion, sexual orientation, disability, social origin, political affiliation, and other protected grounds. Health and safety obligations also apply from day one. Pre-employment medical checks are mandatory for certain roles, including those involving night shifts or elevated occupational risks, especially for those under 18 years old.
Best hiring practices in Lithuania
Recruitment strategies in Lithuania benefit from local language fluency. Most job advertisements and internal documents should be in Lithuanian. Employers often work with local recruitment agencies or online platforms. Employers may also partner with the State Labour Exchange for broader candidate sourcing.
During interviews, formal and polite communication is preferred. Be concise, direct, and respectful. Employers can assess skills through practical tasks or written tests. However, any background check in Lithuania must comply with EU and national data protection laws. Criminal background checks are only permitted in cases established by law.
To foster a positive employment experience, onboarding should include information on company policies, Lithuanian labour rights, and workplace expectations. Offering support with relocation, especially for international staff, can ease the transition and improve retention. For diverse teams, cross-cultural training is also recommended.
Employers must appoint a designated health and safety officer or outsource the function to a certified provider. The workplace should meet all occupational safety standards, with employees informed of risks and safety procedures from the outset.
Hiring practices in Lithuania are rooted in transparency, legal precision, and respect for cultural expectations. Employers that invest in clear processes and employee integration are better positioned to attract and retain top talent in this competitive labour market.
Background checks in Lithuania
When hiring employees in Lithuania, employers must comply with specific legal requirements to ensure a smooth and lawful onboarding process. Conducting a thorough background check in Lithuania involves several steps, ranging from employment record verification to mandatory medical examinations and, in certain cases, criminal background checks.
Employment records check in Lithuania
Employers must have policies such as a remuneration system in place if they employ 20 or more workers. For businesses with over 50 employees, an additional policy implementing equal rights and monitoring principles is required. Before employment begins, the employer needs to conclude a valid employment contract and notify the Lithuanian State Social Insurance Fund Board (SODRA) at least one business day before the start date. It is also important to provide the employee with clear information about working conditions, labour law provisions, workplace procedures, and health and safety requirements. Details about the employer’s identity, workplace location, and type of contract must be communicated to the employee upfront.
Medical check in Lithuania
Medical examinations are mandatory for certain groups of employees, particularly those under 18 years old or those working in environments identified as hazardous following occupational risk assessments. Medical checks are required both prior to hiring and periodically during the employment contract to ensure ongoing safety and health compliance.
Criminal background check in Lithuania
As a general rule, conducting a criminal background check in Lithuania is prohibited, except in cases specifically allowed by law. Employers can perform reference and education checks, though obtaining consent from the current employer is necessary when requesting references.
Employers should ensure all pre-employment checks are compliant with Lithuanian legislation to avoid legal risks while maintaining fair and transparent hiring practices.
Best practices for pre-hire background checks in Lithuania
Employers should approach background checks in Lithuania with care and respect for privacy laws. Always obtain explicit consent from candidates before conducting any checks, especially when requesting references or sensitive information.
It is important to limit checks to those relevant for the role to avoid unnecessary data collection and potential discrimination claims. Maintain confidentiality throughout the process and ensure that information gathered is stored securely and used solely for employment purposes. Keep candidates informed about the steps involved and their rights regarding data protection.
Collaborating with legal experts or local HR professionals can help ensure compliance with evolving legislation and industry standards. By following these best practices, employers can build trust with candidates while safeguarding their business interests.
Hire employees in Lithuania
When you hire employees in Lithuania, it is important to be familiar with the different types of workers you may engage and the legal distinctions between them. Lithuania offers several hiring options, including regular employees, independent contractors, and agency workers. Each comes with specific considerations and compliance requirements to ensure smooth operations and legal adherence.
Hiring regular employees in Lithuania
Regular employees in Lithuania can be hired under permanent, fixed-term, full-time, or part-time contracts. These workers benefit from full labour law protections, including paid leave, social security contributions, and employment rights. Employers must adhere to the Lithuanian Labour Code and related regulations, ensuring proper contracts and workplace conditions. Part-time jobs in Lithuania are common, allowing flexibility for both the employer and employee, particularly when managing varying workloads or operational needs.
Hiring independent contractors in Lithuania
Independent contractors in Lithuania work on a self-employed basis, often engaged directly or through a personal services company. While hiring contractors can offer cost and operational flexibility, employers must be cautious about misclassification risks. Lithuanian law distinguishes contractors from employees based on factors such as the degree of control, subordination, payment methods, and equipment provision. Misclassifying an employee as a contractor can lead to penalties and back payments of taxes and social contributions. It is advisable to consult local labour laws and legal experts to ensure proper classification and compliance.
Hiring for part-time jobs in Lithuania
Part-time employment is a popular arrangement, particularly in sectors with seasonal or fluctuating demands. Many international students seek part-time jobs in Lithuania, balancing work and study commitments. Employers must provide part-time workers with rights proportionate to their working hours, including holiday entitlement and social security benefits. Clear agreements on working hours and duties help prevent misunderstandings and legal issues.
Can international students work full-time in Lithuania?
International students in Lithuania generally have restrictions on working full-time during academic terms. However, during official holidays and breaks, they may be permitted to work full-time, subject to visa and residency conditions. Employers should verify the student’s visa status and any applicable labour regulations before offering full-time roles. This ensures compliance and avoids potential legal complications.
By understanding these distinctions and obligations, employers can effectively hire employees in Lithuania while respecting local laws and promoting fair labour practices. For further guidance, consulting local experts or legal advisers is recommended.
Language in Lithuania
When operating a business in the country, it is important for employers to be aware of the language requirements in Lithuania, especially regarding HR documents and customer interactions. While Lithuania has a rich linguistic heritage, clear communication in the workplace and with clients is crucial to ensure smooth operations and compliance with local laws.
What language is spoken in Lithuania?
Lithuanian is the official language of the country and is part of the Baltic branch of the Indo-European language family. All official documents, including employment contracts and workplace policies, must be prepared in Lithuanian. Employers may also provide documents in other languages if all parties agree, but the Lithuanian version remains the legally binding one. This requirement ensures that all employees fully comprehend their rights and responsibilities, preventing potential misunderstandings.
English language in Lithuania
English enjoys widespread use, especially in business and international communications. Many Lithuanians speak English fluently, particularly younger generations and professionals in urban areas. This makes it relatively easy for foreign entrepreneurs and multinational companies to operate in Lithuania.
However, new legislation set to take effect from January 1, 2026, will require customer-facing businesses to offer services in Lithuanian at a specified proficiency level. This means companies in sectors like retail, food delivery, and transport must ensure their employees can communicate effectively in Lithuanian with clients.
Other foreign languages in Lithuania
Besides English, Russian and Polish are commonly spoken, reflecting Lithuania’s history and diverse population. Russian remains widely understood, particularly among older generations, while Polish is prevalent in regions with significant Polish communities. Despite this multilingual environment, the Lithuanian government encourages foreigners to learn the national language to promote better integration and ensure citizens receive services in Lithuanian.
In summary, while policies surrounding language in Lithuania support the use of Lithuanian for official and customer-related matters, English and other foreign languages remain important tools for business communication. Employers should prepare to meet the upcoming language requirements and consider investing in Lithuanian language training for their staff to foster stronger local connections and ensure legal compliance.
Corporate presence requirements and payroll setup in Lithuania
For foreign companies aiming to operate and hire employees in Lithuania, establishing a proper corporate presence and ensuring compliant payroll setup are critical steps. Lithuania has clear rules governing how foreign entities can engage employees, register for tax and social security, and manage payroll in accordance with local laws.
Setting up a corporate presence in Lithuania
Foreign businesses wishing to hire directly in Lithuania typically need to establish a local corporate presence, such as a subsidiary or branch. This approach simplifies compliance with employment and tax regulations. Registration with Lithuanian authorities is mandatory: companies must register with the State Tax Inspectorate (STI) to obtain a Tax Identification Number (TIN) and with the State Social Insurance Fund Board (SODRA) for social security contributions.
While it is possible for foreign companies to hire employees without a local entity, setting up a legal entity such as a UAB (Private Limited Liability Company) is generally recommended to streamline operations and meet regulatory requirements. Additionally, opening a local bank account is often necessary for managing payroll and other financial transactions efficiently.
Employment contracts in Lithuania must be in writing and specify key details, including the employee’s role, salary, and working conditions.
Setting up payroll in Lithuania
Once the corporate presence is established, the next step is setting up payroll in Lithuania. Employers must register with SODRA to handle social security contributions, which vary depending on the employee’s contract type and income. Payroll processes must comply with Lithuanian tax regulations, including income tax and social security deductions.
Before an employee’s first day, employers must submit hiring declarations using the 1-SD form to SODRA. Salaries must be paid on time, with applicable deductions made from the employee’s gross pay. Employers also have a responsibility to contribute their share to social security.
Lithuania’s tax rates include a 21% VAT (with reduced rates of 9% and 5%), corporate income tax of 15% (or 5% for micro-enterprises), and a personal income tax rate generally set at 15%, with a reduced rate of 5% available in certain cases.
Best practices when operating in Lithuania
To ensure smooth operations, foreign companies should maintain good communication with local authorities and stay updated on any regulatory changes. Using a reliable payroll system that automates tax and social security calculations can reduce errors and compliance risks. It is also advisable to seek expert advice when drafting employment contracts and during the registration process to avoid pitfalls.
In summary, meeting corporate presence requirements and payroll setup in Lithuania involves careful planning and adherence to legal obligations. Establishing a local entity, registering with STI and SODRA, and implementing compliant payroll processes are key to successful and lawful employment operations in the country.
Let CXC help build your global team
Expanding your business into Lithuania offers access to a skilled workforce and the wider EU market, but setting up a legal entity can be time-consuming, complex, and costly. Navigating local employment regulations, tax registration, and payroll requirements without support may expose your business to compliance risks.
That is where CXC can help. As a trusted Employer of Record (EoR) in Lithuania, we streamline your hiring process and ensure full compliance with Lithuanian labour laws. From employment contracts and payroll setup to onboarding and statutory reporting, we manage the details—so you can focus on growing your team and business.
Compliantly hire workers anywhere with CXC
With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.
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