Working life in Lithuania

Notes: Values for real GDP per capita are chain-linked volumes (based on 2010 data; €). The unemployment rate for men and women is the annual average as a percentage of the active population aged 15–74 years, and the youth unemployment rate is the annual average as a percentage of people aged 15–24 years. The employment rate for men and women is the annual average as a percentage of the active population aged 15–64 years, and the youth employment rate is the annual average as a percentage of people aged 15–24 years. GDP, gross domestic product.

Source: Eurostat [sdg_08_10], for real GDP per capita and percentage change 2012–2022; [une_rt_a], for unemployment rate by sex and age; [lfsi_emp_a], for employment rate by sex and age

Economic and labour market context

Between 2012 and 2022, there was a significant increase in gross domestic product (GDP) in Lithuania. According to the State Data Agency (Valstybės duomenų agentūra) (SDA), GDP grew on average by 3.4% annually, and real GDP per capita in 2022 increased by 46.2% compared to 2012. GDP growth in Lithuania was the highest between 2020 and 2021, reaching 6%. Unemployment rates fell and employment rates increased substantially between 2012 and 2022: total unemployment decreased from 13.4% to 6%, while youth unemployment (of people aged 15–24) decreased from 26.7% to 11.9%; the total employment rate increased from 71.8% to 78.6%, and the youth employment rate rose from 29.3% to 36.3%.

Legal context

In Lithuania, both individual and collective labour relations of workers who have signed employment contracts are regulated by the Labour Code of the Republic of Lithuania (Law No. XII-2603). The code was adopted by the Lithuanian parliament on 14 September 2016, and came into force on 1 July 2017. The new Labour Code liberalised work regulation and legitimised more flexible relations between employers and employees in Lithuania.

Certain aspects of the employment of civil servants (such as their status or remuneration for work) are regulated in Lithuania by the new Law on the Civil Service (Law No. VIII-1316), which was approved on 29 June 2018 and entered into force on 1 January 2019.

The procedure for the establishment and functioning of trade unions is regulated by the Law on Trade Unions (Law No. I-2018), approved on 21 November 1991.

The status of works councils, the procedure for their establishment and other aspects of their activities are regulated by the Labour Code.

Industrial relations context

The history of independent Lithuanian trade unions and employer organisations is relatively short. Although trade union density during the Soviet period was very high, Lithuanian unions began to play a more substantial role in industrial relations only after the reconstitution of independent Lithuania at the beginning of the 1990s.

During the Soviet period, the government was the only employer. Independent employer organisations were established only after 1990.

The Labour Code valid since 1 July 2017 established criteria for social partners to be represented on the Tripartite Council of the Republic of Lithuania (Lietuvos Respublikos trišalė taryba, TCRL). Currently, the TCRL consists of seven representatives of employees, seven representatives of employers and seven representatives of the government.

Three trade unions and six employer organisations are represented on the TCRL. The trade unions are the Lithuanian Trade Union Confederation (Lietuvos profesinių sąjungų konfederacija); the Lithuanian Trade Union ‘Solidarumas’ (Lietuvos profesinė sąjunga ‘Solidarumas’); and the General Trade Union of the Republic of Lithuania (Respublikinė jungtinė profesinė sąjunga). The employer organisations are the Lithuanian Confederation of Industrialists (Lietuvos pramonininkų konfederacija); the Confederation of Lithuanian Employers (Lietuvos darbdavių konfederacija); the Association of Lithuanian Chambers of Commerce, Industry and Crafts (Lietuvos pramonės, prekybos ir amatų rūmų asociacija); the Chamber of Agriculture of the Republic of Lithuania (Lietuvos Respublikos žemės ūkio rūmai); the Investors’ Forum (Investuotojų forumas); and the Lithuanian Business Confederation (Lietuvos verslo konfederacija). These unions and organisations participate regularly in national-level social dialogue. The dominant level of collective bargaining in Lithuania is company level. Although sector-level collective bargaining is least developed, since 2017–2018 a cross-sectoral collective agreement and a number of sectoral collective agreements covering some wage-related issues in the public sector (in education, healthcare, social care and some other sectors) have been repeatedly signed and renewed.

In general, the social partners played a modest role in the management of the COVID-19 pandemic. Due to the need for rapid decision-making, social partners were most often just ‘informed and rarely consulted’ in the process of policymaking and decision-making in response to the COVID-19 pandemic.

Trade unions, employer organisations and public institutions play a key role in the governance of the employment relationship, working conditions and industrial relations structures. They are interlocking parts in a multilevel system of governance that includes European, national, sectoral, regional (provincial or local) and company levels. This section looks at the main actors and institutions and their role in Lithuania.

Public authorities involved in regulating working life

The main authority involved in regulating working life in Lithuania is the Ministry of Social Security and Labour (Lietuvos Respublikos socialinės apsaugos ir darbo ministerija). This ministry is responsible for labour policymaking, and organises, coordinates and controls the implementation of policies.

The State Labour Inspectorate (Valstybinė darbo inspekcija) supervises occupational safety and health (OSH) and ensures compliance with laws regulating labour relations, legal provisions on collective agreements and other legislation.

The main national-level social dialogue institution (the TCRL) deals with social, economic and labour problems, and other issues of public relevance. It recommends solutions to the problems while implementing the principle of social partnership.

The Labour Code adopted in 2017 introduced a new definition of collective disputes and some new features in their regulation. As of 1 July 2017, labour disputes were divided into two categories: (1) labour disputes (whether individual or collective) about rights; and (2) collective labour disputes (CLDs) about interests (before 1 July 2017, labour disputes in Lithuania were grouped into individual labour disputes and CLDs).

Two bodies settle disagreements between employers and employees (that is, labour disputes about rights): courts and labour dispute commissions (LDCs). The latter are mandatory bodies for the pre-trial hearing of individual labour disputes. LDC hearings are based on the principle of tripartism, involving the participation of a State Labour Inspectorate representative and social partners (that is, employer and employee representatives) in dispute hearings. The chair of the LDC is appointed by the Chief State Labour Inspector of the Republic of Lithuania, and the other two members of the commission are appointed from among representatives of trade unions functioning within the jurisdiction of local State Labour Inspectorate offices and representatives of employer organisations.

The system for resolving CLDs about interests includes dispute commissions, mediation and labour arbitration.

The main tripartite OSH institution in Lithuania is the commission of the TCRL for OSH.

Representativeness

The new Labour Code, valid since 1 July 2017, established criteria for the social partners to be represented in the TCRL. For trade unions, the most important of these criteria are membership of international organisations, having members or representatives in different regions/sectors, being active for at least three years, and covering at least 0.5% of the country’s employees; for employer organisations, having at least 3% of the country’s salaried employees employed within their companies is the most important criterion (for more details, see Article 185 of the Labour Code).

When concluding collective agreements, representativeness is established by the organisation itself in its incorporation documents. For a trade union/employer organisation to have the right to conclude collective agreements at sectoral or cross-sectoral level, it must state that it is a sectoral or national trade union/employer organisation in these documents.

Trade unions

About trade union representation

According to the Law on Trade Unions, natural persons with legal capacity in employment relationships have the right to freely join national, sectoral or local (territorial) trade unions and participate in their activities. Membership of a trade union founded at enterprise level or at structural unit level should be limited to employees of the enterprise or the structural unit concerned.

Information on trade union membership has been collected by SDA since 2006. Trade union membership in Lithuania in general is quite low, and from 2012 to 2018 it decreased: over that period, the number of trade union members fell from 102,300 to 86,600. However, we can observe quite a steep increase in trade union membership in the country from 2019 to 2021. In 2021, the number of trade union members in Lithuania was 121,200, 40% higher than in 2018. This trend could have been stimulated by the increase in the number of collective agreements in the public sector in 2019–2021, providing for more favourable working conditions for trade union members, and the changes initiated by the government during that time, which caused dissatisfaction among those working in the public sector (such as teachers, lecturers and police officers). SDA does not provide official statistics on trade union density in Lithuania; however, based on the authors’ calculations, density increased very slightly from 2012 to 2021, from 9% to 10%. Low trade union density is most often caused by an absence of social dialogue traditions at company level and some peculiarities of the public and private sectors. For example, in the public sector all main employment and working conditions, including remuneration issues, are rather strictly regulated by the national legislation; therefore, in the public sector usually there is too little room for manoeuvre through collective bargaining. This impedes a rise in trade union membership in the sector. The Lithuanian economic structure also contributes to low trade union density. There is a high prevalence of companies with up to 50 employees, accounting for more than 95% of the total number of entities operating in Lithuania and employing about 50% of all workers in the country. Generally, the smallest companies have the least developed industrial relations.

Trade union membership and trade union density, 2010–2021

Notes: * Proportion of employees who are members of a trade union. ** Trade union membership of employees derived for the total union membership and adjusted, if necessary, for trade union members outside the active, dependent and employed labour force (i.e. retired workers, self-employed workers, students, unemployed people). n.a., not available.

Main trade union confederations and federations

At the beginning of 2023, three trade union organisations were represented on the TCRL. They participate regularly in national-level discussions/negotiations through the TCRL and in sector-level bargaining. National trade unions and their member (sectoral) trade unions also participate in the dominant level of collective bargaining (company level) through holding consultations and providing legal support to company-level trade unions.

Main trade union confederations and federations

In the past 20 years, the main trade union organisations appear to have been transformed from competing and combative organisations into closely cooperating bodies that coordinate their activities. In recent years, there have been no fundamental changes in the context and general settings in which trade unions operate.

Employer organisations

About employer representation

Employers have the right to join organisations that represent their interests in accordance with the principle of the freedom of association.

Information on employer organisations’ membership has been collected by SDA since 2006. According to SDA, the number of employer organisation members in Lithuania decreased from 12,100 to 6,900 between 2012 and 2021. Unfortunately, we cannot draw any conclusions from these figures, as there is no way to calculate employer organisation density in terms of employees.

Employer organisation membership and density, 2012–2021

Notes: * Percentage of employees working in an establishment that is a member of any employer organisation involved in collective bargaining. n.a., not available.

Main employer organisations

At the beginning of 2023, six employer organisations were represented on the TCRL. They participate regularly in national-level social dialogue through the TCRL, and some of their sectoral members participate in sector-level bargaining.

Main employer organisations and confederations, 2022

Note: * Participation in negotiations/social dialogue through the TCRL.

Tripartite and bipartite bodies and concertation

There are several tripartite councils and commissions in Lithuania. Most are specialised and operate at national level, while some are also active at regional level. The main tripartite organisation, the TCRL, was established in 1995 following the conclusion of an agreement on trilateral partnership between the Government of the Republic of Lithuania, the trade unions and the employer organisations, in accordance with the provisions of the International Labour Organization in its Tripartite Consultation (International Labour Standards) Convention (Convention No. 144) of 1976. In accordance with the parity principle, the TCRL consists of 21 members, including seven representatives each from trade unions, employer organisations and the government. Several councils and commissions, dealing with particular areas of social and working life, function under the TCRL: the Commission of Labour Relations (Darbo santykių komisija), the Commission of Remuneration Policy (Darbo užmokesčio politikos komisija), the Bipartite Commission of Civil Servants (Valstybės tarnautojų dvišalė komisija), the Bipartite Commission of the Development of Competences of the Social Partners (Socialinių partnerių kompetencijų ugdymo dvišalė komisija), the Committee of Education (Švietimo komitetas) and the Committee on Culture (Kultūros komitetas).

According to the law, legislative drafts that are submitted to the government on relevant labour, social and economic issues should be agreed in advance with the TCRL. In recent years, the main issues discussed by the TCRL were related to the new Labour Code, the liberalisation of labour relations, the minimum monthly wage, and current social and economic issues.

Other tripartite councils and commissions operate in some state institutions. They deal with the particular areas (for instance, education or labour market policy) or issues (for instance, the European Social Fund or migration) that the institutions are responsible for.

Similar types of tripartite committees/commissions also function at regional level: tripartite councils of the regions and tripartite committees/commissions of various local-level public institutions.

Main tripartite and bipartite bodies

Workplace-level employee representation

According to the Labour Code in force since 1 July 2017, worker representatives consist of trade unions, works councils and trustees. More information on these bodies is provided in the table below.

Regulation, composition and competences of the bodies

The central concern of employment relations is the collective governance of work and employment. This section looks at collective bargaining in Lithuania.

Bargaining system

Collective bargaining takes place mostly at company level (except in a few sectors). Despite the efforts of the social partners to increase the importance of sector-level collective bargaining, the practice is still not widely accepted in the private sector. Since 2017–2018, a number of sectoral (in the education, healthcare and social care sectors) and cross-sectoral collective agreements have been permanently signed/renewed in the public sector. These cover some wage-related issues. National-level social dialogue has played a relatively important role for a number of years. However, the social partners’ discussions and negotiations in the TCRL cannot be considered real collective bargaining.

Wage bargaining coverage

According to the European Company Survey 2019, 10% of employees (in private sector companies with establishments with more than 10 employees) were covered by collective wage bargaining in Lithuania in 2019.

According to expert evaluations and some other sources (for example OECD and AIAS, 2021), the overall collective (wage) bargaining coverage in Lithuania was less than 10–15% until 2018. However, since 2019 the situation has changed: according to the Ministry of Social Security and Labour, collective bargaining coverage in Lithuania reached 15% in 2019, 21% in 2020 and 25% in 2021 (Ministry of Social Security and Labour, 2022). This increase was caused mainly by the increase in coverage in the public sector due to sectoral collective agreements signed between 2018 and 2021.

Collective wage bargaining coverage of employees

Sources:Eurofound, European Company Survey 2013/2019 (including private sector companies with establishments with more than 10 employees (NACE codes B–S), the question in the survey was a multiple choice question and multiple responses were possible); Eurostat [earn_ses10_01], [earn_ses14_01], [earn_ses18_01] (including companies with more than 10 employees (NACE codes B–S, excluding O), with a single response for each local unit); OECD and AIAS, 2021.

Bargaining levels

Working time in Lithuania is set in national legislation (particularly the Labour Code); at company level, some flexible working arrangements (for example the start/end time of the working day, extra holiday days) may be agreed. At national level, the social partners on the TCRL discuss all amendments to the Labour Code, including provisions regarding working time (for example those on overtime work).

Wages in the private sector are mainly set at company level. However, at national level the social partners on the TCRL have to agree on the minimum wage. In the public sector, wages are set mainly by legislation; some annual increases that have occurred since 2018 are set out in national public sector collective agreements.

Levels of collective bargaining, 2022

Articulation

Articulation does not exist in Lithuania.

Timing of the bargaining rounds

There is no particular time when collective bargaining must take place in Lithuania – at all levels it takes place when required. Usually (but not necessarily), company-level collective agreements are signed for a two-year period. Recently, sectoral collective agreements have been signed for a three-year period. According to the Labour Code: ‘A collective agreement shall be valid for no more than four years, except for cases when the collective agreement establishes otherwise’.

Coordination

There are no known cases of coordination of collective bargaining, either vertically or horizontally, in Lithuania.

Extension mechanisms

According to the Labour Code, valid since 1 July 2017, the scope of individual provisions of national (cross-sectoral), territorial and sectoral (production, services or professions) collective agreements may need to be extended by order of the Minister for Social Security and Labour to bind all the employers of the appropriate territory or sector if such a request has been submitted in writing by both parties to the collective agreement. The request must specify the following: the title of the collective agreement whose scope is to be extended; the scope of extension (whether the entire collective agreement or only certain provisions thereof are to be extended); the grounds for extending the scope of the collective agreement; and the projected number of employees to whom the extended collective agreement will apply. The Minister for Social Security and Labour must take a decision regarding the extension of the scope of the collective agreement within 60 calendar days of receiving the request. Although this provision was in force in both the 2017 Labour Code and its previous versions, it has never been applied in practice.

Derogation mechanisms

According to Article 193 of the Labour Code:

the labour law provisions laid down in collective agreements concluded on a national, sectoral or territorial level may derogate from the mandatory rules established in the Code or other labour law provisions, with the exception of rules related to maximum working time and minimum rest periods, the conclusion or termination of an employment contract, minimum wage, safety and health at work, and gender equality and non-discrimination on other grounds, provided that a balance between the interests of the employer and the employees is achieved by the collective agreement. Disputes on the lawfulness of such provisions shall be settled in the procedure established to settle labour disputes on rights. If it is established that a term of a collective agreement contradicts the mandatory rules established in the Code or other labour law provisions, or that a balance between the interests of the employer and the employees is not achieved by a collective agreement, then said may not be applied, and the rule of this Code or labour law provisions shall apply. In any case, a collective agreement may improve the employees[’] situation compared to that established in this Code or other labour law provisions.

Expiry of collective agreements

Fixed-term collective agreements simply end upon expiry; however, if the original agreement expires during collective bargaining and the bargaining is clearly likely to end with the conclusion of a new collective agreement, the case law of the Supreme Court of Lithuania states that the original collective agreement should automatically remain valid until the signing of the new agreement. If collective bargaining fails, the parties may simply resolve the dispute-related issue and continue to follow the original collective agreement if it is still valid. However, practice shows that employers usually use the opportunity to unilaterally terminate the valid collective agreement.

Peace clauses

In accordance with the Labour Code, it is prohibited to call a strike during the term of validity of the collective agreement if the employer complies with the agreement. In this context, the term ‘collective agreement’ is understood in its broad sense, and the view is taken that strikes are prohibited not only when the company’s collective agreement is complied with, but also when the employer, being a member of the employer organisation that has signed the sectoral, territorial or national collective agreement, fulfils the obligations set out in this collective agreement.

Other aspects of working life addressed in collective agreements

The national-level social partners on the TCRL have widely discussed the possibility of making labour legislation more flexible for a number of years. The focus of the discussion around flexibility is job security and working time flexibility.

Since 2017–2018, cross-sectoral collective agreements and several sectoral collective agreements have been permanently signed and renewed in the public sector, covering, among other things, some wage-related issues. Another element that has been widely implemented in these (cross-sectoral and sectoral) collective agreements in the public sector is additional rest/holiday days for members of signatory trade unions.

At company level, significant attention is traditionally paid to OSH and training issues, wages (especially in the private sector), working time flexibility (including work–life balance) and workers’ representation rights.

Legal aspects

As of 1 July 2017, labour disputes in Lithuania were divided into two categories: (1) labour disputes (whether individual or collective) over rights; and (2) collective labour disputes (CLDs) over interests (before 1 July 2017, labour disputes in Lithuania were grouped into individual labour disputes and CLDs).

According to the Labour Code, a strike is a suspension of employees’ work organised by a trade union or their organisation in order to resolve a CLD over interests or ensure the employer’s compliance with the decision adopted in the process of dispute resolution. In terms of duration, a strike may be a warning strike, which may not be longer than two hours, or a real strike.

Since 1 July 2017, the right to take a decision to call a strike has been given only to trade unions or trade union organisations; the decision to call a strike at company level requires approval by at least one-fourth of all members of the trade union. Calling a strike in a sector (production, services or professions) requires the approval of the representative body. The employer or employer organisation and its individual members must be given written notice at least three working days before the beginning of a warning strike or at least five working days before the beginning of a real strike. When a strike is declared, only the demands that were heard by the LDC or in the labour arbitration or mediation process may be put forward.

Developments in industrial action, 2012–2021

Note: n.a., not available.

Source: SDA, 2022a.

Dispute resolution mechanisms

Collective dispute resolution mechanisms

As previously mentioned, since 1 July 2017 labour disputes in Lithuania have been divided into two categories: (1) labour disputes (whether individual or collective) over rights; and (2) CLDs over interests.

CLDs (and individual labour disputes) over rights are examined by LDCs and the courts. Commercial arbitration tribunals may also deal with labour disputes. The body dealing with CLDs over rights is entitled to impose a fine of up to €3,000 on a party that is in violation of the provisions of labour law or agreements between the parties. According to the new Labour Code, disputes over dismissal and removal from work, and disputes over property and non-property damages, fall within the field of competence of the LDCs.

According to the new Labour Code, CLDs over interests should be in the first instance resolved before a commission for CLDs over interests formed by both parties (a dispute commission). The dispute commission has 10 calendar days to resolve the CLD over interests unless otherwise provided by consensus of the commission. The work of the commission ends with one of the following decisions being adopted by mutual consent:

• to pronounce the CLD over interests resolved in the event of entering into a collective agreement or reaching another agreement on the matter of the CLD over interests
• to pronounce the CLD over interests unresolved
• to resolve the CLD over interests by engaging a mediator
• to transfer the CLD over interests to labour arbitration

Individual dispute resolution mechanisms

As stated above, individual labour disputes over rights are examined by LDCs and the courts.

Use of alternative dispute resolution mechanisms, 2013–2022

Source: State Labour Inspectorate, 2023 

‘Individual employment relations’ refers to the relationship between the individual worker and their employer. This relationship is shaped by legal regulation and by the outcomes of social partner negotiations over the terms and conditions. This section looks at the start and termination of the employment relationship and entitlements and obligations in Lithuania.

Start and termination of the employment relationship

Requirements regarding an employment contract

According to the Labour Code, a person in Lithuania acquires full legal capacity in employment relationships when they reach the age of 16 years. However, certain work activities may be performed by minors who are 14 years old. Basic requirements regarding the recruitment of minors are set out in the Labour Code; the Law on Safety and Health at Work (Law No. IX-1672); and the schedule approving the procedure for the recruitment, work and vocational training of people under 18 years of age and conditions for the employment of children, approved by Government Resolution No. 518.

According to the Labour Code, an employer should ensure that an employee is allowed to work only upon signing an employment contract. When concluding an employment contract, the employer must introduce the person being employed to the conditions of their potential work, acts regulating their work that are in force in the workplace and OSH requirements, and obtain a signature to indicate their approval. Unless otherwise agreed by the parties, the employee must commence their work on the day following the conclusion of the employment contract.

In every employment contract, the parties must agree on the essential conditions of the contract, including the employee’s functions and place of work, and on the conditions of remuneration for work.

Dismissal and termination procedures

According to the Labour Code effective since 1 July 2017, an employment contract expires in any of the following circumstances:

• when the contract is terminated by agreement between the signatory parties
• when the contract is terminated on the initiative of one of the parties
• when the contract is terminated at the employer’s will
• when the contract is terminated without the parties’ will
• upon the death of one party (natural person) to the contract
• in accordance with the procedure established by the Minister for Social Security and Labour when the location of the employer (natural person) or employer representatives cannot be determined
• on other grounds set out by the Labour Code and other laws

The new Labour Code provides for more possibilities for employers to dismiss employees than the previous code, for example providing for the quick termination of employment by giving three days’ notice and lower severance pay.

The new code also introduced shorter notices of termination, which can be served when there is no fault on the part of employees. The revised notice period is one month or two weeks when the duration of employment is less than one year (instead of the two months provided for in the earlier version of the code). The notice periods are twice as long for employees who are entitled to the statutory retirement pension within five years and three times as long for employees with a child under 14 or a child under 18 if they have a disability, and for employees with a disability and those who are entitled to the statutory retirement pension within two years.

Severance pay is calculated as follows. Upon the termination of a contract of employment at the employee’s initiative for substantial reasons (the illness or disability of the employee, the attainment of the old-age pension age, the long-term inactivity of the company or non-payment of the employee’s salary for two consecutive months), the employee will be paid a severance pay equivalent to two times their average wage or their average wage when they have been employed for less than a year (instead of two times their average wage in the version of the Labour Code in force before 1 July 2017). When employment is terminated at the employer’s initiative through no fault of an employee, the employee will be paid a severance pay equivalent to two times their average wage, irrespective of their length of service within the company, or 0.5 times their average wage when they have been employed for less than one year. These types of severance pay are considerably lower than the amounts set in the old Labour Code, where they varied from one to six times the average wage depending on the employee’s length of service. However, the Labour Code stipulates that the dismissed employee should also be paid a long-term service allowance through a procedure established by law, taking the employee’s continuous duration of employment at that workplace into account. The benefits are payable to all employees who satisfy established preconditions and who worked under employment contracts and were dismissed at the employer’s initiative on 1 July 2017 or later.

Furthermore, according to the new Labour Code (Article 59), an employer may (except in state and municipal institutions) dismiss an employee without providing a reason by giving three days’ notice and awarding a severance pay of at least six times their average wage. Certain limitations are applicable in this case; a contract of employment cannot be terminated on the ground of employee’s participation in proceedings against an employer accused of a violation of law, or on discriminatory grounds (based on, for example, gender, sexual orientation, race, nationality, marital or family status, intention to have a child/children).

Entitlements and obligations

Parental, maternity and paternity leave

In 2021, according to SDA data, 21,000 women were on maternity leave (in 2020, the number was 20,700); 16,100 people were on parental leave until their child reached 1 year of age (6.9% of them were men); and 19,500 were on parental leave from 1 year of age until their child reached 2 years of age (38.5% of them were men). In 2021, 14,700 men made use of paternity leave (until their child was 1 month of age) (in 2020, this number was 13,800). Between 2020 and 2021, men’s take-up of parental leave until the child reached 1 year of age decreased from 7.2% to 6.9%; and the take-up of leave from when the child reached 1 year of age until they reached 2 years of age decreased from 39.0% to 38.5%.

Statutory leave arrangements

Sick leave

In Lithuania, sickness allowances should be granted in accordance with Article 5(2) of the Law on Sickness and Maternity Social Insurance (Law No. IX-110) of 21 December 2000. Pursuant to Article 14 of this law, the amount of sick pay (sickness allowance) for the first two calendar days of sick leave is paid by the employer and should not be less than 62.06% or more than 100% of the employee’s average salary. After the first two days, the employee is entitled to a sickness allowance paid by the State Social Insurance Fund (Valstybinio socialinio draudimo fondas). The amount of sickness allowance paid by the fund from the third day should make up 62.06% of the average wage of the beneficiary.

A sickness allowance payable per month may not be less than 11.64% of the country’s average wage and cannot exceed two times the average wage (valid in the quarter preceding the month when temporary incapacity for work was established). In Q1 2023, the sickness allowance per day could not be less than €9.95 or more than €106.13 (for one month, the limits were €208.02 and €2,218.15, respectively).

In the event of sickness or trauma, the sickness allowance is payable until the employee regains their capacity to work or until the day on which the level of their capacity for work is established, or until their first day of participating in a vocational rehabilitation programme. In the event of dismissal from work, the sickness allowance is payable for no longer than five calendar days following the dismissal.

In accordance with the Labour Code, employers are prohibited from giving notice of the termination of an employment contract and dismissing from work an employee during a period of temporary incapacity for work, or during leave. If the employee becomes temporarily incapable of working or takes statutory leave during the period of notice, the expiry of the period of notice should be postponed until the end of the temporary incapacity for work or leave (Article 64).

Retirement age

In accordance with the Law on State Social Insurance Pensions (Law No. I-549), the retirement age for women in 2023 was 64 years. For men, it was 64 years and six months. The retirement age was increased annually from 1 January 2012 by four months per year for women and by two months per year for men. This trend will continue until the statutory retirement age of 65 years, as established in the aforementioned law, is reached in 2026.

For workers, pay is a reward for their work and their main source of income; for employers, it is a cost of production and a focus of bargaining and legislation. This section looks at minimum wage setting and collective wage bargaining in Lithuania.

From 2017 to 2021, average gross monthly earnings in Lithuania steadily increased. According to SDA, average gross monthly earnings increased from €840.40 to €1,579.40 between 2017 and 2021. The highest increase was registered in 2019, when average gross wages increased from €924.10 to €1,296.40. However, it should be noted that the large increase in Lithuania in 2019 was due to a major tax reform during which the tax burden was shifted from employers to employees. As a consequence, the gross wages of employees had to be increased by 28.9% to compensate for the effect of the increased tax rates. According to SDA, average net monthly earnings in Lithuania increased by around 52% (from €660.20 to €1,001.80) between 2017 and 2021. The average net wages of men and women were €1,048.20 and €954.20, respectively, in 2021. From 2017 to 2021, the gender pay gap in Lithuania decreased by 3.2 percentage points, from 15.2% to 12.0%.

An analysis of average net monthly earnings by economic activity shows that people paid at the highest rate in 2021 were employed in the information and communication sector (€1,730.20) and financial and insurance activities (€1,612.00); and the lowest salaries were in accommodation and food service activities (€673.30) and arts, entertainment and recreation (€808.40). In Q3 2022 in Lithuania, the gross monthly earnings of part-time employees constituted around 38.8% of the earnings of all employees.

In Lithuania, workers are entitled to 12 wage payments per year.

Average net monthly earnings in Lithuania, by sector (€)

Source: SDA, 2022b.

Minimum wages

Lithuania has a statutory minimum wage. It is specified as a monthly rate and as an hourly rate. According to Article 141 of the Labour Code, the minimum hourly pay and the minimum monthly wage in Lithuania is determined by the government on the recommendation of the TCRL. At the TCRL meeting of 21 September 2017, the council decided that, with a view to depoliticising the setting of minimum wage levels, the ratio between the minimum wage and the average wage should be maintained at 45–50%, and should correspond to that for the average quarter in EU Member States with the highest minimum-to-average wage ratio, as determined based on Eurostat data published for the last three years. According to the Labour Code, the minimum wage in Lithuania can be paid only for unskilled labour, which is defined as labour that does not require any special qualifications or professional skills.

From 1 January 2022 to 31 December 2022, the minimum monthly rate in Lithuania was €730 and the hourly rate was €4.47. In compliance with Resolution No. 1014 of 7 October 2022 of the Government of the Republic of Lithuania on the Minimum Wage for 2023, the minimum monthly rate in Lithuania was €840 and the hourly rate was €5.14 as of 1 January 2023.

Minimum wage, 2016–2023 (€)

Source: SDA, 2023

Working time is ‘any period during which the worker is working, at the employer’s disposal and carrying out his activity or duties, in accordance with national laws and/or practice’ (Directive 2003/88/EC). This section briefly summarises the regulation of and issues regarding working time, overtime, part-time work and working time flexibility in Lithuania.

Working time regulation

Basic provisions regulating working time in Lithuania are established in the Labour Code (Chapter VIII, Section 1). In accordance with the law (Article 112), the length of the working week in Lithuania is 40 hours, unless shorter working hours are statutorily established by labour laws or part-time work is agreed by the parties concerned. Average working time, including overtime but excluding additional work for which there is an agreement, cannot exceed 48 hours within each period of 7 consecutive days. Maximum working time (including overtime and additional work) cannot exceed 12 hours per day or 60 hours per week. Employees cannot work more than six days during seven consecutive days.

Where an employee works under a cumulative working time regime, maximum working time within each period of 7 consecutive days may not exceed 52 hours. This limit does not apply to work that is performed under an agreement on additional work or as part of standby duty. An annualised working time regime can be introduced if necessary and after liaising with employee representatives. From 1 January 2023, employees of state and municipal institutions/enterprises financed by the state or municipal budget or owned by the state or municipality and employees of the Bank of Lithuania who are raising children up to 3 years of age are subject to a reduced standard working time of 32 hours per week and should retain their fixed salary for the time not worked. This reduced working time applies to one of the parents (or adoptive parents) or guardians of their choice until the child reaches the age of 3 years.

Maximum working time requirements may vary from those set out by the Labour Code in transport, postal and agricultural undertakings; energy, healthcare and social care establishments; and some other sectors of economic activity. The peculiarities of working time and rest periods are established by the government or specified in collective agreements.

Overtime regulation

Provisions regulating overtime in Lithuania are established in the Labour Code (Chapter VIII, Section 1). In accordance with the Labour Code (Article 119), an employer can assign overtime work only with an employee’s consent and/or in the following exceptional cases:

• when the performance of unexpected work is needed for the public or to prevent accidents or mitigate dangers
• when it is necessary to finish work or to eliminate an issue that may otherwise result in many workers having to interrupt their work, or to prevent materials/products from being spoiled or work equipment breaking down
• when it is provided for in a collective agreement

According to the Labour Code, employees’ overtime work must not exceed 8 hours in seven consecutive calendar days, unless an employee gives written consent to work up to 12 overtime hours per week. Maximum overtime may not exceed 180 hours per year unless a longer term is established by collective agreement.

In accordance with the Labour Code (Article 144), overtime pay should be at least 1.5 times the hourly pay established for the employee. Overtime pay during public holidays should be at least 2.5 times the hourly pay established for the employee. For overtime worked during the night, the pay should be at least double the rate of the hourly pay established for the employee.

Part-time work

In Lithuania, part-time work is regulated by the Labour Code (Article 40). According to the code, part-time work is established by reducing the number of working hours per day, reducing the number of working days per working week or month, or both. The conditions of part-time work may be established on a fixed-term or open-ended basis. Unless agreed otherwise, an employee who has agreed to work part-time has the right to request, no more than once every six months, that the part-time work conditions be changed. The employer must review this request and provide the employee with a reasoned decision within 10 working days.

During the fulfilment of an employment contract, an employee who has been in an employment relationship with their employer for at least three years has the right to submit a written request to temporarily work part-time. The employer may only refuse to satisfy an employee’s request to temporarily work part-time for valid reasons. These restrictions on part-time work do not apply if the employee’s request is based on a medical condition, a disability or their need to care for a family member or a person living with them, as determined by a healthcare institution. In addition, they do not apply if part-time work is requested by a pregnant employee, an employee who has recently given birth or is breastfeeding, an employee with a child under 8 years of age or an employee who is a single parent of a child under 14 years of age or of a child under 18 years of age if the child has a disability.

Part-time employment accounts for quite a small proportion of work in Lithuania. According to Eurostat, part-time employees constituted around 6.0% of all employees in 2021 (the EU27 average was 17.7%). As in the EU27, women in Lithuania work part-time more often than men (7.6% and 4.3%, respectively), although the share of women working part-time in 2021 in Lithuania (7.6%) was well below the EU average for the same year (28.8%). According to SDA, part-time employees constituted 16.5% of all employees in Lithuania in Q3 2022. By economic activity, the highest shares of part-timers worked in other service activities (44.5%); real estate activities (37.4%); and arts, entertainment and recreation (32.4%). The lowest shares worked in public administration, defence and compulsory social security (3.9%); and manufacturing (5.8%).

Night work

In Lithuania, night work is regulated by the Labour Code (Article 117). In the Labour Code, night-time is defined as 22:00 to 06:00. A night worker is an employee who:

• works at night for at least three hours per working day (shift) or
• works at night for at least one quarter of their working hours in a year

Normally, a night worker should not work more than an average of eight hours per working day (shift) during a three-month accounting period, unless a longer period is agreed in a collective agreement concluded at a higher level than that with the employer.

The pay for night work should be at least 1.5 times the hourly pay established for the employee.

Shift work

There is no special definition of shift work in Lithuania. However, the employer, in applying shift work, has to adhere strictly to the regulation on work and rest time set out in the Labour Code (Chapter VIII). The articles on, for example, annualised recording of working time (Article 115), working time mode (Article 113), requirements regarding maximum working time (Article 114) and minimum rest time (Article 122), and on-call work (Article 118), are relevant to shift work.

Weekend work

Weekend work in Lithuania is treated as working on rest days. According to the Labour Code (Article 124), a rest day is a day free from work in an employee’s working time regime. The Labour Code states that Sunday should generally be a rest day. An employer may assign work on a rest day only with the consent of the employee, except if an annualised working time regime is in place and in cases set out in a collective agreement. Work on a rest day that has not been provided for in the work (shift) schedule should be paid at least double the rate of the employee’s wage. Overtime work on a rest day that has not been provided for in the employee’s work (shift) schedule should be paid at least double the rate of the employee’s wage.

Rest and breaks

Provisions regulating rest time in Lithuania are established in Chapter VIII, Section 2, of the Labour Code (Article 122). In the article, a rest period is defined as time free from work. Employees should be granted a break to rest and to eat no later than five working hours after starting their shift. Unless a split shift regime is agreed by the parties, the break may be no shorter than 30 minutes and no longer than 2 hours.

The duration of uninterrupted rest between working days (shifts) may be no shorter than 11 consecutive hours. The duration of uninterrupted rest may be no shorter than 35 hours in 7 consecutive working days. For employees whose working day (shift) is longer than 12 hours (but no longer than 24 hours), the duration of uninterrupted rest may be no shorter than 24 hours.

The duration and beginning and end times of breaks, and other conditions, are stipulated in the provisions of labour law and work (shift) schedules. Employees who cannot be granted a break to rest and to eat due to technical production conditions should be given the conditions to eat during their working time.

Employees working outdoors, working in conditions involving professional risk and carrying out strenuous or mentally demanding work should be granted special breaks whose length per day (shift) and the conditions of granting them are established by the government.

Working time flexibility

In accordance with Article 113 of the Labour Code, an employer may set out a flexible working schedule for the employees. Employees working flexible schedules must be in the workplace during fixed hours of a working day (shift) and may complete the rest of their working day (shift) before or after those hours. The fixed hours of the working day (shift) are determined by the employer. Such working hours may be changed if the employee is given at least two working days’ notice. If agreed with the employer, the fixed hours not worked during a working day (shift) may be carried over to another working day without prejudice to the maximum working time and the minimum rest time (Article 116). As of 1 August 2022, the employer has to comply with a request to work under the working time regime preferred by an employee (including a flexible schedule), when requested by a pregnant or breastfeeding employee, or an employee who has recently given birth; an employee with a child under the age of 8; an employee raising by themselves a child under the age of 14 or a child under the age of 18 if the child has a disability; an employee who has submitted a request based on the opinion of a healthcare institution on their health status or the need to care for a family member, or a person living with them (Article 113). However, the request must not result in excessive costs for the employer due to production needs or the organisation of work.

Maintaining health and well-being should be a high priority for workers and employers alike. Health is an asset closely associated with a person’s quality of life and longevity, as well as their ability to work. A healthy economy depends on a healthy workforce: organisations can experience loss of productivity through the ill health of their workers. This section looks at psychosocial risks and health and safety at work in Lithuania.

Health and safety at work

In Lithuania, OSH requirements are regulated by the Law on Safety and Health at Work (Law No. IX-1672), as approved on 1 July 2003. The law sets out the rights and obligations of employees and employers and the institutional system for ensuring OSH, and establishes special provisions for the protection of individual groups of employees (pregnant employees, employees who have recently given birth, breastfeeding employees, employees under 18 years of age, employees with a disability). The law also regulates the general provisions of the procedure for assessing occupational risks and investigating accidents at work and occupational diseases.

In a survey on accidents at work and occupational diseases (State Labour Inspectorate, 2021), the total number of accidents at work was found to be 3,850 in 2020 (38 fatal and 3,812 non-fatal accidents). This was an 18% decrease compared with 2019.

Psychosocial risks

The Labour Code and the Law on Safety and Health at Work determine the duty of the employer to ensure the health and safety of workers at work in all aspects of work. It sets out the general obligation of employers to carry out a risk assessment, including for psychosocial factors. The General Regulations on the Assessment of Professional Risk, approved by Order No. A1-457/V-961 of 25 October 2012 of the Minister for Social Security and Labour and the Minister for Health are the main legal instrument regulating the assessment of psychosocial risks in Lithuania. In addition, the methodological guidelines for the study of psychosocial occupational risk factors, as approved by Order No. V-699/A1-241 of the Minister for Health and the Minister for Social Security and Labour on 24 August 2005, apply in Lithuania, setting out the requirements for the study of psychosocial occupational risk factors and the qualification requirements for the people carrying out the study.

Skills, learning and employability

Skills are the passport to employment; the more highly skilled an individual, the more employable they are. People with good skills also tend to secure better-quality jobs and better earnings. This section briefly summarises the Lithuanian system for ensuring skills and employability and looks at training provision.

National system for ensuring skills and employability

In Lithuania, the main institution implementing skills development policy is the Ministry of Education, Science and Sport. This ministry shapes national policies in the area of education and qualifications and is responsible for the organisation, coordination and control of the implementation of the policy. It is assisted by the Ministry of Social Security and Labour, which coordinates, analyses and evaluates the implementation of labour market and employment support policies (including vocational education and training (VET) for unemployed people). It is also assisted by the Ministry of the Economy and Innovation, which organises prognostic studies of the labour market’s human resource demand, generalises findings of current and prospective analyses of skills supply and demand in the labour market, and formulates conclusions and recommendations for the government and other public authorities/agencies.

Two main forecasting instruments measure and assess the needs for labour and skills in the labour market in Lithuania. The forecasting tools developed by the Employment Service of the Ministry of Social Security and Labour help to compile a national forecast, job opportunity barometer and occupations map; these are supplemented by the qualifications (skills) map developed by the Government Strategic Analysis Center.

The Ministry of Education, Science and Sport is the main body responsible for shaping and implementing VET policy in Lithuania. Other ministries and government bodies are also involved in VET policy (such as planning VET funding or managing enrolments in continuing VET upskilling programmes). The Government Strategic Analysis Center plays an important role in the formation of VET policy: it provides the monitoring framework for VET and plans human resources and forecasts new qualification requirements in line with national policies and the needs of the economy. The Qualifications and Vocational Education and Training Development Centre (Kvalifikacijų ir profesinio mokymo plėtros centras) is the institution responsible for the development of qualifications and VET standards in Lithuania.

The main advisory bodies involved in designing VET provision and ensuring cooperation in VET delivery between all VET stakeholders are sectoral professional committees. A total of 18 such committees have been established in Lithuania. Their members represent employers, education and training providers, trade unions and public organisations in specific sectors. Sectoral professional committees are actively involved in shaping and assessing new modules of vocational training programmes, and creating and approving sectoral qualification standards used to design new VET content, among other things. The Law on Vocational Education and Training (Law No. VIII-450) (Article 34) stipulates that the social partners have the power to do the following: participate in the formulation of VET policy; initiate the development of new qualifications, vocational standards and course units, and participate in the elaboration of their content; and help evaluate the relevance of VET programmes and vocational standards to the economy’s needs.

The main measure designed to adapt higher education/VET to labour market needs in Lithuania is the inclusion of employers and associated business entities in the development of training/study programmes, programme implementation and the assessment of graduates’ competencies.

Training

In Lithuania, the Ministry of Education, Science and Sport is the main national public institution responsible for the regulation and development of training. The Qualifications and Vocational Education and Training Development Centre also contributes to the implementation of training activities. It implements the national VET development policy in Lithuania. The main functions of the centre include the development of professional and VET standards, the conducting of prognostic studies on the demand for qualifications and adult education surveys, the formation of the qualifications system and the assessment of formal VET programmes.

According to the European Company Survey 2019, 46% of establishments with 10 or more employees in Lithuania provided training during working time to less than 20% of their workers. The largest proportion of employees receiving training on their establishment’s premises or at other locations during paid working time was reported in small enterprises (with 10–49 employees). Around 17% of such companies indicated that 80% or more employees participated in training sessions on the establishment’s premises or at other locations during paid working time.

The principle of equal treatment requires that all people – and, in the context of the workplace, all workers – have the right to receive the same treatment, and will not be discriminated against on the basis of criteria such as age, sex, disability, nationality, race and religion.

The main legal acts ensuring equality and non-discrimination at work in Lithuania are the Law on Equal Treatment (Law No. IX-1826) and the Law on Equal Opportunities for Women and Men (Law No. VIII-947).

The Law on Equal Treatment ensures the equality of people and prohibits restrictions on human rights or extensions of privileges on the grounds of gender, race, nationality, language, ethnic origin, social status, belief, convictions and views. The Law on Equal Opportunities for Women and Men establishes general principles for ensuring equal rights between women and men and bans any form of discrimination with regard to gender.

The body responsible for ensuring the principle of equal opportunities is respected in Lithuania is the Office of Equal Opportunities Ombudsperson (Lygių galimybių kontrolieriaus tarnyba). The office monitors and controls the implementation of the above laws by national and municipal authorities and agencies; education, research, training and other institutions; and employers.

Equal pay and gender pay gap

The equal pay for equal work principle in Lithuania is enshrined in Article 7 of the Law on Equal Treatment and Article 6 of the Law on Equal Opportunities for Women and Men, stating that the same work or work of equivalent value should be equally paid. In Lithuania, the implementation of the Law on Equal Opportunities for Women and Men is monitored and supervised by the Equal Opportunities Ombudsperson. Each natural and legal person has the right to file a complaint with the ombudsperson concerning the violation of equal rights.

According to SDA, the unadjusted gender pay gap in Lithuania was 12.0% in 2021. Compared with 2020, this gap had decreased by 1 percentage point (from 13.0% to 12.0%). In Lithuania, the gap peaked in 2007 and 2008, reaching 22.6% and 21.6%, respectively.

Quota regulations

In Lithuania, there are no specific quotas in place in law, even for certain (disadvantaged) groups of workers.

Employer organisations

• Lithuanian Confederation of Industrialists (Lietuvos pramonininkų konfederacija, LPK)
• Confederation of Lithuanian Employers (Lietuvos darbdavių konfederacija, LDK)
• Association of Lithuanian Chambers of Commerce, Industry and Crafts (Lietuvos pramonės, prekybos ir amatų rūmų asociacija, LPPARA)
• Chamber of Agriculture of the Republic of Lithuania (Lietuvos Respublikos žemės ūkio rūmai, ZUR)
• Investors’ Forum (Investuotojų forumas, IF)
• Lithuanian Business Confederation (Lietuvos verslo konfederacija, LVK)

Trade unions

• Lithuanian Trade Union Confederation (Lietuvos profesinių sąjungų konfederacija, LPSK)
• Lithuanian Trade Union ‘Solidarumas’ (Lietuvos profesinė sąjunga ‘Solidarumas’, LPS ‘Solidarumas’)
• General Trade Union of the Republic of Lithuania (Respublikinė jungtinė profesinė sąjunga, RJPS)

Government

• Ministry of Social Security and Labour (Lietuvos Respublikos socialinės apsaugos ir darbo ministerija, SADM)
• State Social Insurance Fund (Valstybinio socialinio draudimo fondas, VSDF)
• State Labour Inspectorate (Valstybinė darbo inspekcija, VDI)

Tripartite body

• Tripartite Council of the Republic of Lithuania (Lietuvos Respublikos trišalė taryba, LRTT)

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