What are the legal requirements? 

There are many legal requirements in Lithuania that businesses must comply with.

More information:

Do I need a licence to start my business?

In the cases prescribed by law, legal persons may engage in particular activities only after obtaining a license issued in accordance with the procedures established by law. Legal person must hold all licences (permits) that are determined as necessary conditions for its activity.

What working conditions are required?

The employer must ensure the right of every worker to working conditions which respect his or her health and safety.

Occupational risk assessment must be performed: the likelihood of trauma or other damage to health due to harmful and/or hazardous work environment (chemical, physical, biological, ergonomic, psychosocial factor).

Employees working under occupational risk conditions must undergo periodical health examinations (during recruitment, during employment, changing work or workplace).

What is minimum salary in Lithuania?

Minimum monthly salary (MMA) in Lithuania — EUR 555 (since 01 01 2019).

MMA is set by the government. MMA stands for the minimum monthly amount to be paid by the employer to the employee (for 40-hour work week, not including overtime).

Personal income tax (GPM), compulsory health insurance (PSD) as well as pension and social insurance are deducted from the salary.

Can I work part-time?

Terms of part-time work must be included in the employment contract when the employee is recruited (when signing the employment contract), or later (by changing the employment contract).

Time for part-time working day or work week is determined by agreement between the employee and the employer (mutual agreement is mandatory) or, when this is required, as prescribed by Article 40 of the Labour Code of the Republic of Lithuania (Agreement for part-time work).

 

More information

Do I need a licence to start my business?

In the cases prescribed by law, legal persons may engage in particular activities only after obtaining a license issued in accordance with the procedures established by law. Legal person must hold all licences (permits) that are determined as necessary conditions for its activity.

Government of the Republic of Lithuania approves licensing rules for each type of licensed activity prescribed by law. These rules may be found on the website of a licensing institution.

Licence is issued for an indefinite period if the conditions listed in the licensing rules are met. License to engage in a particular activity or a written reasoned refusal to issue a license is submitted to the applicant within 30 days after provision of all documents required for a licence, unless otherwise provided by law.

Main activities requiring licenses or permits:

  • Transportation of people;
  • Cargo transportation;
  • Public catering;
  • Construction;
  • Production and sale of alcohol and tobacco;
  • Pharmaceutical activity;
  • Production and sale of oil products.

List of licenses and permits is provided on the website of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania:  http://www.vmi.lt/index.jsp?lang=en.

What working conditions are required?

The employer must ensure the right of every worker to working conditions which respect his or her health and safety.

Occupational risk assessment must be performed: the likelihood of trauma or other damage to health due to harmful and/or hazardous work environment (chemical, physical, biological, ergonomic, psychosocial factor).

Employees working under occupational risk conditions must undergo periodical health examinations (during recruitment, during employment, changing work or workplace).

More information:

Law on Safety and Health at Work of the Republic of Lithuania:

https://e-seimas.lrs.lt/rs/legalact/TAD/TAIS.249611/

Employees are prohibited to start work if they are not instructed and trained to work safely (or without making sure that they are able to do so). The procedure for briefing and training is determined by the employer.

Institutions responsible for occupational safety control in enterprises: State Labour Inspectorate, Ministry of Health and Ministry of Social Security and Labour.

Occupational health and safety is regulated by the following: Constitution of the Republic of Lithuania, Labour Code, Law on Occupational Health and Safety, other legislation:

  • General Provisions for Installation of Workplaces approved by the Minister of Social Security and Labour of the Republic of Lithuania and Minister of Health of the Republic of Lithuania.
  • Work environment assessment regulated by the Order on Approval of the General Provisions of Occupational Risk Assessment of the Minister of Social Security and Labour and Minister of Health.
  • Minimum requirements for used equipment are approved by the order of the Minister of Social Security and Labour of the Republic of Lithuania.

What is minimum salary in Lithuania?

Minimum monthly salary (MMA) in Lithuania EUR 555 (since 01 01 2019).

MMA is set by the government. MMA stands for the minimum monthly amount to be paid by the employer to the employee (for 40-hour work week, not including overtime).

Personal income tax (GPM), compulsory health insurance (PSD) as well as pension and social insurance are deducted from the salary.

Take-home pay depends on applied monthly non-taxable amount (NPD). Monthly NPD depends on the amount of remuneration for work, disability groups (for persons with disabilities), pension accumulation option.

For example, in 2019, an employee earning a minimum monthly salary of EUR 555, with no determined disability groups and not paying contributions to a pension fund, will receive EUR 395.78 after taxes.

Minimum hourly rate (MVA) in LithuaniaEUR 3.39 (since 01 01 2019).

Government decision on minimum salary of 16-10-2018, No. 1025, TAR, 16-10-2018, code 2018-16268

Can I work part-time?

Terms of part-time work must be included in the employment contract when the employee is recruited (when signing the employment contract), or later (by changing the employment contract).

Time for part-time working day or work week is determined by agreement between the employee and the employer (mutual agreement is mandatory) or, when this is required, as prescribed by Article 40 of the Labour Code of the Republic of Lithuania (Agreement for part-time work).

Part-time working hours may be determined by shortening the working week (hours) or shortening a work day (shift) or both. Terms for shortened work time shall be laid down in the employment contract.

Part-time workers are not subject to any restrictions for determining their annual leave, work experience, promotion, training or other rights compared to full-time employees working the same or equivalent work, in terms of work experience, qualification and other circumstances.

Work is paid according to hours worked or work performed.