All About Offering Employee Benefits in Lithuania
Hire the best talent in Lithuania with the information you need to offer a competitive benefits package and stay compliant.
Required Benefits in Lithuania
In Lithuania, paid annual leave, public holidays, sick pay, and comprehensive social insurance coverage through Sodra are all statutory employee benefits. Employers must register employees with Sodra and contribute to the state social insurance system. With Justworks EOR, you can provide locally aligned benefits while supporting compliant employment practices.
Social Security
Employers and employees both contribute to Lithuania's state social insurance system, known as Sodra. For indefinite contracts, employers contribute 1.77% of gross pay, while employees contribute 19.5%. These contributions fund pensions, healthcare, sickness, maternity, and unemployment protections. The employee's mandatory health insurance contribution gives them access to the public healthcare system.
Time Off
Employees in Lithuania earn at least 20 working days of paid annual leave per year on a five-day week, accruing from their first day of employment. They're also entitled to 16 paid public holidays in 2026 and statutory sick pay. They also receive maternity, paternity, and childcare leave, supported by Sodra benefits.
Offer Competitive Benefits
To stand out in Lithuania's competitive talent market, many employers go beyond statutory requirements by offering extra perks and allowances.
Supplemental Health Coverage
Although public healthcare is available to all, private health insurance is by far the most common supplemental benefit in Lithuania, especially in technology, fintech, and shared services. It provides faster access to specialists, diagnostics, dental care, and wellness check-ups.
Additional Paid Time Off
Many employers offer more paid leave than just the statutory 20 days. Extra paid days are outlined as an extra-statutory entitlement in the employment agreement. Additional time off is a popular way to stand out and support employee wellbeing.
Supplemental Pension & Life Insurance
Employers can fund voluntary Pillar III pension contributions and life insurance for their employees. These contributions are exempt from personal income tax, so long as total contributions don't exceed 25% of the employee's annual income and the employer is based in the EEA. Generally, these tax exemptions make them a tax-efficient perk.
Professional Development
Another common employee perk is supporting continuous learning through training programs, certifications, or learning and development budgets. These initiatives help employees build skills that advance their careers.
Ready to Offer Benefits in Lithuania?
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