PEO Services in Lithuania

A co-employment model for companies that want to share the employer relationship in Lithuania rather than hand it over entirely. We help you work out whether PEO or EOR genuinely fits, and place you with the right vetted partner.

  • Independent advice
  • Vetted partners
  • Honest positioning

What a PEO does in Lithuania

A Professional Employer Organisation works on a co-employment model. You and the PEO partner share the legal employer responsibilities for your Lithuanian staff: you keep direction and day-to-day control, while the partner administers payroll, GPM, Sodra, and HR compliance under a shared arrangement.

01

Shared employer role

You and the PEO partner share the legal employer responsibilities. You keep direction and control; they handle payroll, GPM, Sodra, and HR administration.

02

More direct control

PEO suits companies that want to retain more direct control of the employment relationship than a full EOR arrangement allows. In Lithuania, EOR is more common.

03

Honest recommendation

For most companies hiring in Lithuania, EOR is simpler. We will tell you honestly whether PEO genuinely fits your structure, or whether EOR serves you better.

How PEO works in Lithuania, step by step

From assessing the fit to a compliant co-employment arrangement.

01 — Assess the fit

We map your structure, headcount, and how much control you want to keep, and tell you honestly whether PEO or EOR serves you better. No product push.

02 — Set up co-employment

If PEO fits, we place you with a vetted Lithuanian partner and structure the shared employer arrangement correctly.

03 — Onboard your people

Compliant Lithuanian employment terms under the Labour Code, with the administrative employer functions handled by the partner.

04 — Payroll & compliance

GPM, Sodra, and filings handled monthly, while you keep day-to-day direction.

What PEO in Lithuania costs

As with EOR, two parts: the statutory cost of employment (low employer burden in Lithuania) and the partner service fee.

Employer Sodra

Among the lowest employer rates we work with: roughly 1.77% on top of gross, administered as part of the co-employment structure. Most of Lithuania’s social burden sits on the employee side (19.5%).

Minimum wage (2026)

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

Income tax (employee)

20% / 25% / 32% under the 2026 reform, withheld via GPM as part of the shared payroll administration.

PEO partner fee

A service fee for the co-employment administration. We benchmark across our vetted network, typically 15 to 25% below going direct.

Why arrange it through Bradford Jacobs

Why companies arrange Lithuanian PEO through us rather than going direct to a single provider.

We tell you if PEO fits your needs

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 flat 1.77% employer Sodra rate is the same everywhere. The partner’s own service fee is not, and that is the part worth negotiating. We benchmark it across our vetted network for rates typically 15 to 25% below going direct.

  • 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 of placements

Two decades placing and managing employment arrangements across Europe and the Baltics, with the local knowledge of Lithuania’s Sodra split (19.5% employee, 1.77% employer) and the three-tier GPM bands introduced in the 2026 reform, so nothing gets miscalculated on either side of the co-employment split.

  • Co-employment expertise
  • Honest fit advice
  • Right structure

We flex as your structure changes

PEO, EOR, and your own entity sit on a spectrum, and the right point shifts as you grow. We advise on the path and manage the moves, EOR to PEO, or either to your own UAB, as your Lithuanian presence develops.

  • EOR, PEO or entity
  • Transitions managed
  • Right fit as you grow

The Lithuanian duties a PEO takes on

Whichever expansion model you use, the underlying regulations are the same. Under a PEO arrangement, the administrative employer functions are handled for you.

Working time, leave & contracts

Compliant Labour Code contracts and working-time rules (40-hour week, 20 working days leave). GPM and Sodra withheld and filed correctly. Statutory benefits, notice, and severance applied properly.

Statutory protections & exits

Statutory notice, probation, and the protections Lithuanian employees carry under the Labour Code, all handled under the shared arrangement. The value is the same as with EOR: the compliance is handled by people who do it daily. The difference is simply how much of the employer role you keep.

What a PEO arrangement covers

The co-employment administration covers all of this, under one transparent fee.

Compliant contract

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

Payroll & filings

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

Statutory benefits

All statutory benefits administered: annual leave, sick pay, parental leave, notice and severance.

Compliance & support

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

Your questions answered

Straight answers on how PEO co-employment works in Lithuania.

What is the difference between PEO and EOR in Lithuania?

With an EOR, the partner is the sole legal employer of your Lithuanian staff. With a PEO, you and the partner share the employer relationship, you keep more direct control, they handle the administration. In Lithuania, EOR is more common; PEO suits specific co-employment structures.

For most companies, EOR is simpler and faster, especially with no Lithuanian entity. PEO fits when you want to share rather than outsource the employer role, or have a structure that calls for it. We assess your situation and recommend honestly.

It depends on the structure. Some co-employment arrangements assume or work alongside an entity (a UAB). If you have no entity and want none, EOR is usually the cleaner route. We will confirm which applies to you.

The administrative employer functions, payroll, GPM, Sodra, statutory benefits, and filings, are handled by the partner. We make sure the arrangement is structured so responsibilities are clear and Lithuanian law is met.

The statutory employer cost (employer Sodra around 1.77%, among the lowest in Europe) plus a partner service fee for the co-employment administration. We benchmark across our network for pricing typically 15 to 25% below going direct.

Yes. These models sit on a spectrum and the right one changes as you grow. We advise on the path and manage transitions, EOR to PEO, or either to your own UAB, as your Lithuanian presence develops.

Not sure whether PEO or EOR is right for Lithuania?

Tell us your structure and headcount and we will give you an honest recommendation, usually within a day, plus pricing you will not get direct. No product push, just the right fit.

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