Public Holidays in Lithuania: What you Need to Know as an Employer

Sitting at number 11 of almost 200 countries included in the World Bank’s ‘Ease of Doing Business’ ranking in 2020, Lithuania has climbed an impressive 13 places since the 2015 report. This change has put the country firmly on the radar of entrepreneurs and corporations alike.

It is not surprising that Lithuania is ranked so highly; it has one of the lowest corporate tax rates in Europe (15%), an excellent strategic location within the EU, and several free economic zones (FEZs) offering various benefits to businesses.

If you are branching out into the booming Lithuanian market, getting familiar with the country’s employment laws is a vital step. In Lithuania, employees have certain rights surrounding public holidays and annual leave that you must facilitate. This article will offer a basic summary of your key responsibilities as an employer.

Public Holidays in Lithuania

What are Employees Entitled to on Public Holidays in Lithuania?

Employees are entitled to the day off on a public holiday. The day before a public holiday, workdays should be shortened by one hour.

Work on a public holiday is only permitted with the written consent of the employee, except in cases where work is carried out according to the summary recording of working time or in the cases specified in the collective agreement.

What Regulations Must Employers Follow Regarding Public Holidays in Lithuania?

If an employer needs an employee to work on a public holiday, they must get written consent from the employee (except for work carried out according to the summary recording of working time or as specified in the collective agreement).

If an employee agrees to work on a public holiday in Lithuania, employers are obliged to pay them double salary. Under the employee’s written request, the additional time multiplied by the corresponding amount can be added to annual leave.

When are Lithuania’s Public Holidays?

  • January 1st: New Year’s Day
  • February 16th: Day of Re-establishment of the State of Lithuania
  • March 11th: Day of Re-establishment of Lithuania’s Independence
  • Easter Sunday (date changes each year)
  • Easter Monday (date changes each year)
  • May 1st: International Labour Day
  • First Sunday in May: Mother’s Day
  • First Sunday in June: Father’s Day
  • June 24th: St John’s Day
  • July 6th: Day of the State (Coronation of King Mindaugas)
  • August 15th: Assumption Day
  • November 1st: All Saints’ Day
  • November 2nd: Day for Remembrance of the Dead
  • December 24th: Christmas Eve
  • December 25th and 26th: Christmas

Annual Leave in Lithuania

How is Holiday Pay Calculated in Lithuania?

In Lithuania, all employees are entitled to a minimum of 20 working days annual leave, whether they work five working days per week and 24 working days, if employees work six working days per week. Some people are entitled to a minimum of 25 working days annual leave, whether they work five working days per week and 30 working days, if employees work six working days per week, including (but not limited to) employees who are disabled, under the age of 18, or raising a child under the age of 14 on their own.

In Lithuania, the calculation of the average salary for holiday pay is based on the employee’s earnings over the three months prior to their vacation. Here’s how it is typically done:

  1. Sum Earnings. Calculate the total income the employee earned in the last three months before their holiday. This includes their regular salary, overtime payments, bonuses, and other forms of compensation.
  2. Count Total Worked Days. Evaluate the total number of days the employee worked during the same three-month period.
  3. Calculate Average Daily Wage. Divide the total remuneration by the number of days worked to find the average daily wage of the employee.
  4. Determine Holiday Pay. Multiply the calculated average daily wage by the number of working days the employee will be on leave to compute the total holiday pay.

Please note that the calculation of the average salary may vary if there are additional payments such as monthly, quarterly, or annual bonuses. These bonuses are incorporated into the average salary calculation according to specific rules.

Manage Payroll in Lithuania With Leinonen’s Expertise

Leinonen has been delivering tailored accounting, payroll, and tax services for local and foreign-owned businesses in Lithuania for more than 28 years. Contact us to find out how we can help your company establish a strong presence in Lithuania, offering the most up-to-date advice and local knowledge on employment rules and regulations.

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