Hiring in Lithuania? Right model first, everything else follows.

Lithuania is one of Europe’s most cost-effective places to hire, but getting your employment model wrong still carries real cost in time, money, and compliance. We help you choose the right way to hire, place you with the right partner, and stay alongside you for the life of the relationship.

  • Independent advice
  • Vetted partners
  • On your side at renewal

Low employer costs, low tolerance for sloppy filings.

Lithuania is one of Europe’s fastest-rising business destinations: a Eurozone member, a genuine fintech and technology hub, and a highly educated, English-speaking workforce at costs well below Western Europe.

01

Fast-growing tech and shared-services base

A rising Baltic hub for fintech, IT and shared services, with strong English proficiency, competitive costs and full EU market access.

02

Highly regulated labour market

With the Labour Code, State Labour Inspectorate enforcement alongside the tax reforms in 2026, choosing your employment structure is more important than ever.

03

Independent expert advice

Not sure whether you need EOR, PEO, or a UAB? We map your headcount, timeline, and risk profile and give you a clear recommendation, not a product pitch.

Four ways to hire in Lithuania. One is right for now.

Most businesses often decide which model they want to use when they expand, but often that was chosen with the wrong information. Here is a transparent guide to each route.

Employer of Record

An EOR partner becomes the legal employer of your Lithuanian staff, handling the contract, payroll, tax, and compliance, while you direct the work. Operational in days, no entity needed. Best for testing the market or hiring a small team.

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Global Payroll

For when you already have a Lithuanian entity, or want to consolidate payroll across several countries under one process. You stay the legal employer; a specialist partner runs compliant Lithuanian payroll.

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Entity Formation (UAB)

Your own Lithuanian company (a UAB, Uždaroji akcinė bendrovė). Full control and a local presence, with no per-employee fees, but setup takes weeks. You also cannot hire anyone until the formation completes and the ongoing compliance obligations become real. This option is best when the headcount and permanent base justify it.

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PEO Services

A co-employment model where you and the partner share the employer role. Less common in Lithuania than EOR, and right only for specific structures. We will tell you honestly if it fits, or if EOR is simpler.

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Lithuania at a glance

Currency

Euro (EUR). In the eurozone since 2015; salaries, Sodra contributions, and filings all run in euros.

Minimum wage (2026)

€1,153 per month (€7.05 per hour) in 2026, the statutory floor for full-time work.

Employer costs

Employer Sodra is approx. 1.77% on top of gross salary, among the lowest in Europe. The 19.5% social contribution is borne by the employee.

Leave & Notice

20 working days statutory annual leave (28 calendar days). Notice is generally 1 month (2 weeks under a year of service).

Hiring in Lithuania: the fundamentals

The questions we are asked most about hiring in Lithuania.

What is the fastest way to hire someone in Lithuania?

An Employer of Record. Your hire can start in days, with a compliant Labour Code contract from day one and no entity to set up. It is the lowest-risk way to test the market or place a small team.

Do I need a Lithuanian entity to hire?

No. With an EOR you can employ people in Lithuania without your own company. You only need an entity (a UAB) when you are committing to a permanent, larger presence, and we will tell you honestly when that point arrives.

A detailed Labour Code, State Labour Inspectorate enforcement, and the 2026 tax reform that reshaped income tax and contributions. None of it is a problem when handled correctly, which is the point of getting the model right at the start.

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

Let’s get your Lithuania hire started.

Tell us who you want to hire and where you are headed in Lithuania. One conversation maps your options, flags the risks, and usually gets you to a better answer, and better pricing, than going direct. No pitch.

Tax and labour data verified June 2026 (VMI, PwC, OECD). Figures change; we confirm the current position when we scope your hire.