Lithuania might not be the biggest country in Europe both in terms of size and population. Yet, the amount of foreigners coming here to work has been increasing throughout the last few years. All thanks to a lot of good job opportunities combined with a relatively low taxes and cost of living, a strong economy, and high quality of life.
In this article, we will provide an overview of jobs in Lithuania for foreigners, including information on the minimum wage, tax system, and payroll regulations.
List of jobs in Lithuania for foreigners:
- Information Technology. Lithuania is known for its highly skilled workforce in the technology sector. Besides, due to turbulent political events in neighboring Belarus, many successful IT companies moved their offices from Minsk to Vilnius. Both immigrant and domestic companies in this field are constantly looking to hire foreign workers with expertise in software development, data analysis, and cybersecurity.
- Finance and Accounting. With the country’s growing economy, there is a high demand for professionals in finance, accounting, and payroll maintenance. Foreigners with experience in these fields can find job opportunities in accounting firms, banks, and financial institutions.
- Teaching. English is widely spoken in Lithuania, and there is a growing demand for native English speakers to teach in schools, language centers, and universities. This applies not only to language teachers but to any academic field professionals.
- Healthcare. Lithuania has a well-developed healthcare system and needs skilled healthcare professionals, including doctors, nurses, and medical technicians. Foreigners with qualifications in these fields can find job opportunities in hospitals, clinics, and, most importantly, high-profile research institutions.
- Art sphere. Lithuanian state-financed and independent art institutions offer not only numerous residentships but also a variety of career opportunities in theater, applied arts, gallery curating, etc.
Taxes, minimum wage, and payroll in Lithuania
Finding good job opportunities is not enough. It’s important to know the financial environment in Lithuania before considering working here.
Taxes
Let’s start with the tax overview. Lithuania has a flexible tax system, meaning you’ll pay different amounts in different cases. For instance, if you earn less than 101,094 EUR annually, you’ll be obliged to pay 20% in income tax. However, if you do exceed that number, the tax percentage will rise to 32% for the exceeding part. The personal income tax for self-employed individuals is lower — 15%. Besides the personal income tax, you will also contribute a portion of your income to SODRA — a government institution responsible for providing you with social security. If you want to calculate the gross to the net salary you’ll get working in Lithuania, feel free to use our salary calculator for Lithuania 2023. And also remember — your country might have a double taxation avoidance agreement with Lithuania, meaning that you won’t have to pay taxes in your home country while working in Lithuania. You can find the list of such countries here.
Minimum wage
Then, there’s a minimum wage. Lithuanian minimum wage has been steadily rising throughout the last decade. In 2023 the minimum wage in Lithuania is €840 per month and €5.14 per hour. You should, however, still pay attention to these amounts even if you earn more. You can request your Lithuanian employer to apply for a non-taxable income system. Such deduction is applicable for only one place of work. The amount of non-taxable income depends on the amount of the current minimum wage and the salary you receive. Namely, if you get €1926 or less a month, the formula for calculation of the non-taxable income would go as follows: 400 – (0.18*(Initial Salary – 840)). At the same time, if your gross salary exceeds €1926 a month, the formula would change to 642 – (0.42*(Initial Salary – 840). You can read more about the minimum wage in Lithuania and its historical changes here.
Payroll
Payroll accounting is the responsibility of your potential Lithuanian employers. It must be calculated and paid by them to you at least once a month, they must provide you with a payslip outlining the details of your pay, including any deductions or bonuses, they must pay taxes and social security contributions on your behalf, and, finally, they must report all payroll data to the State Tax Inspectorate every month. In case your employers fail to comply with the procedures mentioned above, they could face severe legal penalties. So if you have any concerns considering the organization of the payroll process in your company, don’t hesitate to address your employees on this topic.
In general, this is all the surface information you might need to make up your mind about working in Lithuania. This especially applies to you if you are an EU citizen seeking work in this Baltic republic as the relocation process would be quite simple for you.
