Lithuania

Overview of Lithuania

Lithuania is the southern most of the Baltic countries. It is situated on the eastern shore of the Baltic Sea. Its capital is Vilnius and it has a population of 2.9 million. On May 1^st 2004, Lithuania joined the European Union. The official language is Lithuanian but many also speak Russian and English. Lithuanian is the oldest Indo-European language in Europe. Lithuania is a Parliamentary democracy and it was the first country to claim independence from from the USSR.

Punctuality is important when meeting with Lithuanians. They dress formally for business meetings and expect their guests also to be dressed appropriately. There is a marked difference between young entrepreneur and older businessmen. During meetings, it is important to also build a relationship with Lithuanians. Do not interrupt when someone is speaking but patiently wait your turn.

Currency of Lithuania

• Euro

Health Insurance and the Social Security system of Lithuania

Lithuania has a universal healthcare system funded through the national health insurance scheme. All employees are registered through their employer into the scheme. Family members are automatically covered when one person is registered and pays the contribution. Healthcare as well as emergency treatment is free with the standard system of referrals from doctors.

Private healthcare is rare as few locals can afford the cost. However private clinics for medical tourists are a growing industry.

Employer cost of Lithuania

The cost for an employer to hire someone in Lithuania is a plus of 1.77% to the gross salary.

Salary and bonuses of Lithuania

Regular employees are paid monthly.

Some companies pay a Christmas bonus.

Commissions, incentives, and bonuses are variable and will be agreed upon directly with the employer.

Public Holidays in Lithuania

• January 1^st – New Year’s Day
• February 16^th – Day of Restoration of the State of Lithuania (1918)
• March 11^th – Day of Restoration of Independence of Lithuania (1990)
• moveable – Easter (Easter Sunday and Easter Monday)
• May 1^st – Labour Day
• First Sunday in May – Mother’s Day
• First Sunday in June – Father’s Day
• June 24^th – St. John’s Day
• July 6^th – Statehood Day
• August 15^th – Assumption Day
• November 1^st – All Saint’s Day
• November 2^nd – All Soul’s Day
• December 24^th – Christmas Eve
• December 25^th and 26^th – Christmas

Working Hours in Lithuania

Office hours are from 8:00am to 5:00pm, Monday to Friday.

A regular work week is 40 hours but can be extended to Saturdays and 48 hours.

Lithuanians are ready to work overtime and long hours in order to provide well for their families.

Overtime is paid at 150% of the normal hourly salary. Maximum overtime is 8 hours per 7 consecutive days.

Vacation in Lithuania

Lithuanians are entitled to a minimum of 20 days (4 weeks) of annual leave.

Sick Leave in Lithuania

When an employee falls sick in Lithuania, the first days of the illness are paid by the employer and the employee receives 100% of his wage. From the third day onwards, the SoDra (State Social Insurance Fund Board) steps in and continues to pay 62.06% of the employee’s average earings over the previous 3 months.

Termination/Severance in Lithuania

When terminating an employee in Lithuanian, one should do so with a written notice. Dismissal can be through mutual agreement or dismissal due to objective reasons (ordinary dismissal) (darbo sutarties nutraukimas darbdavio iniciatyva be darbuotojo kaltės).

The notice period for dismissal is as follows:

0-1 years of employment: 2 weeks notice

more than 1 year: 1 month notice

Upon termination, an employee is entitled to a severance pay. If the employee has been with the company for less than 1 year, the severance pay is half a monthly salary. If the employee has been with the company for longer than 1 year, the severance pay is up to 2 month’s salaries. Additionally, the dismissed employee may receive severance pay from the State Social Insurance Fund Board (SODRA).