How to hire remote employees in


Lithuania, though a small country, is home to some great remote talent. Want to know how you can hire that talent, legally, without wading into months of paperwork and thousands of dollars in fees? In the next few minutes, we’ll teach you.

Country snapshot

Euro (EUR)
1.77% - 2.49%

What to know before you hire in 


Hiring in Lithuania? That’s excellent. There are two options: You can hire your talent as employees, or you can hire them as contractors. Because of Lithuania’s labor law structure, there are benefits and disadvantages to each approach.

If you want to successfully hire in 


, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 


. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 


 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 


Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 



It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 


 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

Can be less risky than hiring employees

Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 



If you’re hiring contractors in 


, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 


Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 


If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Lithuania than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Lithuania.

Taxes in 


Employer tax

open-ended contract

fixed-term contract

Individual tax


Paid Time Off (PTO)

PTO is calculated by the:

  • Employees receive 20 days of annual leave.

Public Holidays

There are 11 public holidays. The day before the public holiday, working hours are reduced by one hour (paid, just one hour shorter is indicated in the timesheet). Public holidays are paid holidays.

Sick Days

The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:

  • 100% of the average salary for the first two days is paid by the employer.
  • From the third sick day on, employees receive 62.06% of their salary from SODRA (employer does not incur costs).65.94% is paid by SODRA if the employee takes incapacity for work for the patient’s care.

Maternity Leave

Eligible employees receive 18 weeks (126 days) of paid maternity leave based on an employee’s average monthly wage during 12 consecutive calendar months prior to the beginning of maternity leave.

An additional two weeks is given for complicated childbirths and multiple births. The maternity benefit is 77.58 percent of the recipient’s compensatory earnings.

This amount is calculated on the basis of the person’s insured income received during the 12 consecutive calendar months preceding the month in which entitlement to the maternity benefit arose. The minimum maternity benefit per month cannot be less than 228 Eur.

Paternity Leave

New fathers are entitled to 4 weeks of paternity leave. The pay calculation is the same as specified in the ‘Maternity Leave’ section.

Parental Leave

100% paid up to one year of parental leave. If the parent chooses to receive the benefit until the child reaches two, 70% is paid until child reaches one and 40% thereafter. The pay calculation is the same as specified in the ‘Maternity Leave’ section.

Other Leave


Marriage Leave


Bereavement Leave



Termination Process

For employers to properly terminate an employee, they must provide the correct notice. The length of notice is determined by the length of continuous employment.

Notice Period

The notice period in Lithuania is:

Standard notice is period one month.

For employees with less than 1 year of service, notice period is two weeks.

The previously mentioned notice periods are increased 3 times for:

* Employees raising a child (also adopted) under 14 years of age

* Employees raising a disabled child under age 18

* Disabled employees

* Employees who would be entitled to the retirement pension in 2 years

Notice periods are doubled for employees who will be entitled to the retirement pension in 5 years.

Severance Pay

Severance payments are calculated per one month’s average wage when the employee has been in the company for 12 months or less and up to six months’ average when the employment is over 240 months.

Probation Period

Probation periods are not required but are common. They typically last 3 months.

Employee requirements in 


Working Hours

Full Time employment is 40 hours weekly, and 8 hours daily.


Employees are paid 150% of their normal hourly salary for overtime. If overtime is from 10 PM to 6 AM they should receive 200% of their normal hourly salary.

Maximum overtime hours are as follows:

  • 8 hours per 7 consecutive days
  • 12 hours per 7 consecutive days if the employee expresses his/her consent in writing.

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