Hire your remote team in Lithuania

Only 499 EUR per employee per month

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Hiring a remote team in a country as Lithuania comes with a lot of overhead, such as compliance, local laws, taxes, etc. As a company, you don't want to worry about knowing all the local laws. Instead you want to focus on your remote team and the business. Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Lithuania. We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business.

A remote team

1. Hire a remote team in Lithuania with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in Lithuania, particularly if you don't have established local relationships. You can hire employees in Lithuania effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Introduction

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!

3. Hire a remote team in Lithuania

Hiring remote employees in Lithuania is a decision that requires a lot of analysis and scrutiny. Recruiting the right employees is another important task. To prevent penalties and delays, employers must learn how to recruit personnel and understand the country's employment compliance rules.

4. Cost of living in Lithuania

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.

5. Cost of renting in Lithuania

The cost of living in a country is determined by a variety of factors, including the place in which the individual resides, the kind of industry prominent in that area, state revenue, and taxation laws. The biggest determinant of living costs is location. The table below provides an overview of the cost of living in Lithuania.

Lithuania’s rent prices are comparatively low with older European Union member states. The price is determined by

- The city

- Location within the city

- The flat’s size and its condition

- The duration of the agreement

A studio apartment costs between USD 250 and 450 (211.79 and 381.22 EURO) per month in the three largest cities (Vilnius, Kaunas, and Klaipda).

Rent for one- and two-bedroom apartments may range between USD 400 and USD 550 (338.86 to 465.93 EURO) per month, and between USD 400 and USD 700 (338.86 to 593 EURO) per month.

Rental costs may vary greatly across neighborhoods and cities. A freshly furnished studio apartment in Vilnius' city center, for example, may cost up to USD 600 (508.29 EURO) each month. Prices in smaller cities, on the other hand, are often cheaper in comparison.

6. Major industries in Lithuania

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).

7. Hiring cost in Lithuania

When employing people, the hiring cost is an important issue to consider. It is determined by a variety of variables, including the cost of living and overall expenditures in a city. When you decide to recruit someone in a certain location, numerous major aspects influence the hiring cost, such as

- Onboarding costs

- Training

- The money incurred in taking interviews, conducting the screening process, and completing the hiring process

- Opportunity costs

8. Employment laws Lithuania

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 views

Employers 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.

9. Top skills Lithuania

Lithuania benefits from being the geographical hub of Europe. It is quickly disproving the idea of a rising market and establishing itself as a prominent high-value export player throughout the globe. Lithuania's top sectors that are employing include:

- Petroleum refining

- Food processing

- Energy supplies

- Chemicals

- Furniture

- Wood products

- Textile and clothing

Lithuania's IT industry is continually expanding, resulting in a workforce eager to be employed in the same field. Human resources are available in Lithuania for occupations such as Sales & Business Development, Project Management (Tech), Marketing, PR & Media, Data & Analytics, Software Engineering, and Design.

The bulk of Lithuania's IT firms are headquartered in Vilnius and Kaunas. Vilnius is the nation's biggest IT centre, hence app development in Vilnius is becoming more popular.

10. Economic landscape in Lithuania

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.

11. Market size in Lithuania

Despite sustained GDP growth, Lithuanian consumers remain price sensitive, since buying power is lower than in other European Union (EU) nations. The consumer goods market in Lithuania is fragmented. Consumer preferences are classified based on wage, age, and social category. Most people prefer to buy a product with a well-known brand and high quality, with price serving as a signal of quality. Foreign items are often seen as a mark of high quality by Lithuanian customers. Lithuania's improving economy has boosted consumer confidence and family expenditure. Consumers are more interested in new health trends and gourmet foods, as well as other luxuries, and they want greater customer service. There has been a marked drop in price promotion efforts as an indication of economic progress.

12. Minimum wage in Lithuania

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.

13.Why choose Rivermate to hire your remote team in Lithuania?

Establishing an entity in Lithuania to hire a team takes time, money, and effort. The labor law in Lithuania has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Lithuania simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in Lithuania give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in Lithuania via our Employer of Record (EOR) / PEO solution.

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