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Benefits in Lithuania

Mandatory Employee Benefits in Lithuania

Health insurance by the national system

All residents in Lithuania have access to the national health system, which is funded through mandatory contributions by employees (6.98%). However, some specific health services are compensated partially or not included in the national system and therefore require individuals or their private health insurance to cover them. Other treatments such as prescriptions, hospitalisation, pregnancy, and rehab are services funded by the national system.

The employer should register the employee with the health insurance fund and withhold monthly contributions during payroll.

Education

After five years of continuous employment, employees are entitled to at least half of their salary to be left for education leave (for formal or non-formal education) of up to ten working days per year. However, the participation in the non-formal adult education program should be related to the employee’s professional development.

Non-Mandatory Employee Benefits in Lithuania

Additional annual leave

It is common for tech companies to provide employees with additional days off, often 4 to 8 additional days (above the statutory 20). In addition, some companies give employees their birthday off.

Private health insurance

Even though Lithuania has a good public health system, including dental health care, many companies offer employees private health insurance for additional coverage. Most companies will pay for the employees’ and their dependents’ private insurance, but some companies offer co-payment or discounted insurance prices to employees.

Private pension plan

A private pension is a common benefit in Lithuania. The pension system in Lithuania comprises three pillars. The first one is mandatory for both employers and employees. The second one is optional and applicable to employees only, including a contribution from the government. The third one is an optional pillar for companies to make additional contributions often ranging 3% – 8% of the employee’s gross salary. Employers who made additional contributions to employees’ pension funds can deduct such an expense from their corporate income tax if certain conditions are met.

Sick leave

In Lithuania, employees are entitled to paid sick leave. The employer is responsible for paying the first two days of the illness at a rate ranging 62.06% – 100% of the employee’s average monthly salary. From the third day onward, the social security authorities (SODRA) pay the employee 62.06% of their salary. It is very common for employers to top up the SODRA contributions to make 100% of the employee’s salary. The duration of paid sick leave depends on the reason the employee requires sick leave (e.g., a trauma, disease, tissue or organ donation, taking care of a sick family member, etc.).

Work flexibility

Increasingly, tech companies are adhering to a flexible work schedule to improve employees’ work-life balance. Different approaches to flexibility exist, such as full-time work from home, hybrid work, flexible hours with core hours, and complete hour flexibility. In Lithuania, having a flexible working schedule is one of the most important factors for job seekers.

Training & learning

Most tech companies provide employees with individual budgets to further their professional knowledge. Some companies offer internal training and mentoring programs; others set a spending amount for employees to use as they wish (commonly, 10%–15% of the employee’s net salary).

Gym Membership

Some companies subsidise or offer discounted gym membership to their employees. Other companies offer fitness stipends to be spent on specific sports an employee may be interested in or even access to remote workout classes.

Life insurance

Life insurance is a very sought-after benefit by employees in Lithuania. It is common for companies to offer accident and life insurance for employees in case they fall severely ill, become disabled, or pass away. The benefit is often a monetary lump sum based on the employee’s yearly pay that is multiplied by three, four, or five, depending on their role.

Cash bonus

It is common for companies in Lithuania to offer employees annual bonuses, depending on the employee’s and the company’s performance.

Stock options

Many tech startups in Lithuania use stock options as a way to attract and retain talent during the early stages of the company. As a result, Lithuania has a very startup-friendly legislation for stocks as long as they are kept for at least three years before being exercised.

Wellness 

Many companies provide in-person or remote access to mental and emotional health support programs, such as Employee Assistance Programs.

This page was last updated on 
22 September, 2022,
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