Hire a remote team in Lithuania

Rivermate is a global employment solutions company that provides Employer of Record services in Lithuania.As an employer of record, we help you hire employees and run payroll services in Lithuania, allowing you to avoid the necessity of first establishing a branch office or subsidiary in Lithuania.It is not necessary to establish an entity in order to hire an employee. We can hire your employee in any country with a few mouse clicks. Using our Employer of Record solution, you can have full compliance, benefits, and automated payments.If you wish to hire a remote team in Lithuania or individually hire remote employees in Lithuania, Rivermate’s global employer of record services will make sure that the process will be as seamless as possible for you.Send us a message so we can talk about how Rivermate’s Employer of Record Lithuania services can best help your company!

Lithuania's cost of living is $859, which is 1.09 times less costly than the global average. Lithuania rated 88th out of 197 nations in terms of cost of living and 33rd in terms of quality of life.In Lithuania, the average after-tax wage is $1091, which is enough to pay living costs for 1.3 months.

Agriculture accounts for 3.2% of total GDP in Lithuania and employs 7-8% of the working population (World Bank, 2020). The principal products in this sector include wheat, wine, barley, potatoes, pork, timber, and sugar beets. Arable land and crops cover more than one-third of Lithuania's land area (around 2 million hectares). To mitigate the effects of the pandemic, the government implemented initiatives such as the Agricultural Loan Guarantee Fund, which allows loans to offer salaries and lease deposits and witnessed an increase of up to 100% in interest compensation. According to Eurostat, overall agricultural production will increase by 4% in 2020.The industrial sector accounts for 25.3% of GDP and employs over 26% of the total population. The principal industrial sectors include electronics, domestic appliances, machine tools, metal processing, chemical products, light industry, building materials, food processing, apparel, and furniture. In addition, the country is trying to build oil refineries and shipyards. According to the World Bank, Lithuania's manufacturing sector will account for 16% of the country's GDP. The service industry accounts for 61.4% of GDP and employs more than two-thirds of the workforce. The information technology and communications industries are substantial contributors to GDP. Tourism has also improved and is now one of the nation's fastest-growing industries.Lithuania is ranked 30th in the world in terms of mobile speed and 32nd in terms of fixed broadband speed. In Lithuania, the average download speed is 132.67 Mbps and the upload speed is 119.65 Mbps (fixed broadband), whereas in Latvia, the average download speed is 64.59 Mbps and the upload speed is 13.58 Mbps (mobile broadband) (Mobile).

As the recruiting and recruitment process begins, the employer should keep the legal requirements in mind. Employers in Lithuania are obligated by law to treat their workers equally in the workplace. Employees are protected against a variety of forms of discrimination based on qualities such as:- Nationality- Race- Sexual orientation- Disability- Gender- Age- Social status- Origin- Marital and family status- Religion- Membership in political/public organizations- Beliefs, convictions, or viewsEmployers in Lithuania must follow these rules while recruiting and employing. To ensure compliance with these regulations, refrain from asking inquiries about the aforementioned qualities during interviews and discussions with potential workers. Some of the above-mentioned qualities may come up during a casual chat with the applicants, but employers should avoid discussing them throughout the recruiting process. The penalty for breaching these regulations may be severe, including costly legal action and significant fines, thus employers in Lithuania must always be professional, polite, and non-discriminatory toward all applicants throughout the recruiting process.Employees are not permitted to work more than 40 hours per week or 8 hours per day under Lithuanian labor rules. However, several industries, such as specialized communications services, childcare, healthcare, and others, need personnel to work almost 24 hours a day. Employees may work overtime, but they may not work more than 48 hours per week.Although Lithuania has relatively few collective bargaining agreements (CBAs) or trade unions, employers should nonetheless audit and determine if their industry or workers are covered by one. Because of these agreements, the nation's employment compliance rules may alter, therefore it's critical to be aware of any such changes.

Lithuania has been a member of the European Union (EU) since 2004, and its economy has seen significant development and quick modernisation since joining the Organization for Economic Cooperation and Development (OECD) in 2018. The country saw a speedy rebound from the 2009 financial crisis, and it also had a diverse industrial sector and a well-performing banking sector. It was the only European country whose GDP did not fall noticeably in the first quarter of 2020.Lithuania managed the CovidD-19 epidemic successfully, resulting in a 0.8% reduction in GDP in 2020. High exports, private consumption, and a decreased reliance on the tourist industry all contributed to Lithuania's GDP being steady in compared to other nations. The International Monetary Fund (IMF) expects Lithuania's GDP to grow by 3.2% by 2022, however the European Commission's predictions are more cautious (3% and 2.5%, respectively) due to the unforeseen global scenario.

Employees in Lithuania must earn at least 642 EUR per month by January 2021 in order to comply with Lithuanian compensation laws. Bonuses are not required, but many employees expect them to be included in their employment contract. Workers with in-demand skills can expect to be paid more for their time as well as receive annual raises.