Employer of Record (EOR) in Lithuania

Hire in Lithuania in days, with no entity and at some of the lowest employer costs in Europe. We place you with the right vetted EOR partner, at pricing you will not get going direct, and stay on your side for the life of the relationship.

  • Independent advice
  • Vetted partners
  • Operational in days

What an Employer of Record does for you in Lithuania

An Employer of Record is a company that legally employs your Lithuanian staff on your behalf. You choose the person and direct their work day to day. The EOR is the legal employer on paper, which is what lets you build a team in Lithuania without forming your own company.

The EOR partner takes on the legal responsibilities: a compliant employment contract under the Labour Code (Darbo kodeksas), monthly payroll with GPM (Gyventojų pajamų mokestis, income tax) and Sodra (social insurance) withholding, employer Sodra contributions and all statutory filings, statutory benefits and leave, and compliant onboarding and lawful exits. You get a working team in days. The EOR carries the legal and compliance weight; you carry the commercial relationship. The only question worth spending time on is which partner is genuinely strong in Lithuania, and that is the question we answer for you.

01

Legal Employer On Paper

A compliant Lithuanian employment contract under the Labour Code (Darbo kodeksas), with all statutory terms correct from day one.

02

Compliant From Day One

Monthly payroll, GPM (income tax) and Sodra (social insurance) withholding, employer Sodra contributions, and all filings to the State Tax Inspectorate (VMI).

03

No Entity Required

Statutory benefits, annual leave, notice periods and severance in accordance with the Labour Code along with compliant onboarding and exits. You will have a working team in days and the EOR carries the legal weight.

How your Lithuanian hire goes live

From first call to a compliant Lithuanian hire at work, usually in days.

01 — Scope & quote

We map the role, salary, and start date, and come back with a clear all-in monthly cost. No guesswork, no hidden extras.

02 — Compliant contract

Your employment contract is drafted to Lithuanian standards by the partner, and we sanity-check the terms and pricing before you sign. Compliant from day one.

03 — Onboard in days

A correct Lithuanian contract is issued under the Labour Code, with all statutory terms from day one. Your hire can start in days.

04 — Payroll & compliance run

GPM and Sodra calculated and withheld, payslips issued, filings made to VMI and Sodra. You direct the work; the compliance just runs.

What EOR in Lithuania costs

Two parts: the statutory cost of employing someone, and the EOR partner fee. Employer on-costs here are among the lowest in Europe: most social insurance comes out of the employee’s gross salary, and the employer typically adds only around 1.77% on top. We make both transparent before you commit.

Employer social security

Approx. 1.77% on top of gross salary. Lithuania puts most of the social burden on the employee (19.5%), so your employer cost is among the lowest in Europe.

Minimum wage (2026)

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

Income tax (employee)

Progressive 20% / 25% / 32% (2026 reform), withheld via GPM. Borne by the employee, not added to your cost.

EOR partner fee

A transparent per-employee monthly fee. We benchmark across our vetted network, typically 15 to 25% below going direct, and renegotiate for you at renewal.

Why run it through Bradford Jacobs

We know which EOR partners are genuinely strong in Lithuania, by sector and by complexity. We place you with the right one, at pricing you will not get going direct, and stay on your side for the life of the relationship.

Independent, not a single provider

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.

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

Pricing you can’t get direct

Lithuania’s employer Sodra rate is a flat 1.77% for permanent contracts, among the lowest employer shares in Europe, since employees carry the larger 19.5% share. That statutory split does not change by provider. The partner’s own fee does, and that is what we benchmark: typically 15 to 25% below going direct, renegotiated for you at renewal.

  • 15-25% below direct
  • Network benchmarking
  • Renegotiated for you

Straight to the top when it matters

When something needs resolving, and in global employment it sometimes does, you come to us. We escalate directly, past the helpdesk, to people who can actually move it.

  • Direct escalation
  • No support queues
  • Named account contact

Two decades across Europe

Two decades placing and managing EOR arrangements across Europe and the Baltics, with the local knowledge of the Labour Code, the Sodra split (19.5% employee, 1.77% employer), and the three-tier GPM bands from the 2026 reform that keeps you compliant.

  • EOR specialists
  • Labour Code & Sodra
  • Risk removed

Built for conversion to your own entity

Most companies use an EOR for 12 to 24 months, then move to their own UAB (Uždaroji akcinė bendrovė). We plan that crossover and manage the transition when the time is right.

  • EOR to UAB path
  • Transition managed
  • Crossover planning

Why Lithuania is one of Europe’s most cost-effective places to employ

Two things make Lithuania stand out for foreign employers: the cost of employing, and the speed of getting started. An EOR gives you both.

Working time, leave & contracts

The lowest employer cost in the region. Lithuania puts most of the social burden on the employee: the 19.5% Sodra contribution comes out of the employee’s gross, while your employer Sodra cost sits at roughly 1.77% on top.
For a foreign company used to Western European employer costs of 20% or more, that is a structural saving on every hire, and an EOR lets you access it without forming a company.

Operational in days, not weeks

Forming a Lithuanian UAB takes weeks, and you cannot legally employ anyone until it completes. An EOR removes that wait entirely: a compliant Labour Code contract is issued and your hire starts in days.
You prove the market first, then form an entity later only if the headcount justifies it. This is the real value of EOR in Lithuania: the lowest employer cost in the region, reached at speed, with the compliance carried by an expert.

What your Lithuanian EOR takes off your plate

One transparent monthly fee per employee covers all of this. No hidden extras.

Compliant Lithuanian contract

A compliant Lithuanian employment contract under the Labour Code, issued and maintained for you.

Payroll, GPM & Sodra

Monthly payroll run, with GPM and Sodra calculated, withheld, and filed correctly each month.

Statutory benefits

All statutory benefits administered: annual leave, 2 days of employer-paid sick leave (then Sodra-paid), parental leave, notice and lawful exits.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on how Employer of Record works in Lithuania.

Is my hire employed by Bradford Jacobs or by me?

Legally, your hire is employed by the Lithuanian EOR partner we place you with, which is what keeps you compliant without an entity. Day to day they work for you: you set the work, the goals, the relationship. You get the team; the partner carries the legal employer obligations.

Usually within days once the role and salary are agreed, with a compliant Labour Code contract from day one. Compare that to the weeks a UAB incorporation takes, during which you cannot legally employ anyone.

Less than most of Western Europe. Employer Sodra is around 1.77% on top of gross; the larger 19.5% social contribution is borne by the employee, not added to your bill. Add the transparent EOR partner fee and you have your all-in cost.

Yes, when done properly. The EOR is a real Lithuanian legal employer meeting all Labour Code, Sodra, and tax obligations. The risk is using an under-resourced partner, which is exactly why we place you with vetted partners and stay on your side.

The compliant contract, monthly payroll (GPM and Sodra withholding), employer contributions, statutory benefits and leave administration, and ongoing HR compliance. We give you one all-in monthly figure up front, with no hidden extras.

Yes, and most companies do once the headcount and permanence justify it. We manage the transition from EOR to your own UAB, and can support the entity formation itself. Most use EOR for 12 to 24 months first.

Ready to hire in Lithuania?

Tell us the role and we will come back with a compliant, all-in monthly cost and the right partner, usually within a day. No entity, no lock-in, no pitch, just the fastest compliant way to get your person working in Lithuania.

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