LITHUANIA EURES adviser Karolina Kleinotaite Gorodnicenko

LITHUANIA

EURES adviserKarolina Kleinotaite

Gorodnicenko

Moving to Lithuaniaresidence permit

If EU citizen is intending to: start working or carry out other legal activity in

Lithuania; stay in Lithuania longer than 3 months; study in Lithuania

He must apply to Migration authority for atemporary residence permit*.

* The family members of an EU citizen can also obtain a temporary residence permit if they wish to come and live at the same time or at a later stage.

Moving to Lithuania residence

permit

The Migration Department will decide within 1 month for issuance of a temporary permit.

Temporary permits are issued for up to 5 years, except in the case of students, whose temporary permits are issued for 1 year of study.

Migration Department www.migracija.lt

Moving to Lithuania finding

accomodation

Possible ways to find an accommodation are: real estate agencies (www.on.lt/hfinans.htm); personal contacts; ads in the newspapers (www.aliovakarai.lt) on the Internet:

www.bustonuoma.net; www.aruodas.lt; www.butunuoma.lt; www.namai-namuciai.lt; www.skelbiu.lt; www.paslauga.lt.

Moving to Lithuania finding

accomodation

Rent prices of flats in the capital vary from 400 LTL (116 €) to 8000 LTL (2319 €). Rent for a house costs from 2000 LTL (580 €) to 14,000 LTL (4058 €) per month;

Sometimes foreigners are overcharged!

When buying or renting a home, it is important to organise all legal documents properly. You can contact estate agents or the offices of notaries for assistance.

Moving to Lithuania opening a bank

accountFor account opening, the following

personal identity documents will be required:

• passport or personal identity document of an EU citizen; • permit for temporary or permanent residence in the Republic of Lithuania;

Deposit accounts are opened subject to a standard-format agreement between the customer and the bank.

Working conditions in Lithuania

labour market situation


labour market situation

Opportunities for specialists:• warehousing servants;

• sales, marketing, tourism and commerce managers;

• physicians;

• accountants;

• engineers;

• insurance agents;

• computer equipment operators;

• technicians of construction engineering.

Opportunities for service employees and qualified workers:

• shop assistants;

• carpenters- builders and joiners;

• bricklayers;

• painters;

• drivers;

• tailors;

• welders;

• wood processing machine and equipment operators.


work permit

Work permits are not required for EU citizens and their family members intending to work under the employment contract in Lithuania.

EU citizens have the same rights as Lithuanian citizens with regards to salary, working conditions, professional training and social insurance.


looking for a work

Note that Lithuanian employers mostly require good knowledge of the Lithuanian language!

Exception – international companies.

Before leaving own country you should make arrangements with former employers who can provide references. Your employers in Lithuania may well wish to contact them.

Make a representative CV.


looking for a work – making a CV

Typed CVs are common in Lithuania; There are no strict rules for CVs in Lithuania, but

your CV shouldn’t exceed 2 pages; Make it look professional; Do not list all the facts about yourself, highlight

only those that may seem useful to an employer; Many now have a scanned photo in the top right

hand corner; If you have got written references, just mention

that references are available upon request.


looking for a work

If you intend to look for work in Lithuania: you can get registered at local labour exchange (

www.ldb.lt); go to private recruitment agencies www.visalietuva.lt; look for job ads in the newspapers such as www.lrytas.lt; search the Internet;

www.cvonline.lt; www.noriudarbo.lt; www.skelbimas.lt/darbas; www.cvbankas.lt; www.lenta.lt; www.cvmarket.lt; www.surask.lt;

use personal contacts.


employment contract

You should always have a written employment contract whether your post is permanent or temporary.

The employment contract must be concluded in writing according to a standard format. Written contracts are drawn up in duplicate. One of the signed copies is given to the employee, the other remains with the employer. The employer is responsible for the proper conclusion of the employment contract.

Further information: http://www.lda.lt/invest.law_tax.contract.html


remuneration

Average monthly salary in Lithuania (the fourth quarter 2006) was 1731 LTL gross (502 €), 1294 LTL net (375 €).

The Government of the Republic of Lithuania sets a minimum hourly rate and a minimum monthly salary.

The current minimum monthly salary is 600 LTL (~174 €), while the minimum hourly rate is 3.66 LTL/hour (1.06 €).

Normal working hours are 40 hours (5 days x 8 hours) per week.

It is said by law that working hours should not exceed 8 hours per day and the maximum number of working hours over 7 days, including overtime, should not exceed 48 hours.

The minimum annual leave is 28 calendar days.

Institution for questions regarding the labour law – Public Labour Inspection www.vdi.lt .


working time

The principle of personal freedom to engage in economic-commercial activities means that natural persons in Lithuania may engage in economic activity with or without incorporating a company.

All the companies (except for personal companies and partnerships) are limited liability.

The principles of freedom of companies to establish branches and representative offices and enter into associations are also ensured in Lithuania.

Self employed workersgeneral information

A person who is going to start individual activity has to inform the tax administrator according to the place of residence.

Within 10 working days from the date of receival of the application the tax administrator will issue the certificate.

Then choose income tax rate - 15% or 27% - and apply this rate when calculating the income tax.

Self employed workers procedures

A person who is going to register individual enterprise should submit the following documents to a Notary: the application to register the company, the statute, the statement regarding the address of the company.

The original documents authenticated by a notary must be submited to the Register Center (the application to register the individual company, the statute, the document verifying the registration fee has been paid).

Detailed information can be found in Lithuanian’s development agency website for Small and Medium sized Enterprises www.smeda.lt .

Self employed workers procedures

An employer is obligated to deduct, immediately, each month, the amount of tax and national insurance due from a salaried worker.

A salaried employee's income that is derived mainly from a Lithuanian company is taxable at 27%.

Each month 320 Lt is non-taxable. Social security contribution is 34% (31% is

paid by the employer and 3% by the employee).

Living conditions taxes and charges on

labour

Living conditions prices

(€)

1 Ltr of milk – 0.58

1 big bread - 0.58

1 kg of potatoes – 0.43

1 kg of coffee – 8.7

1 beer in a pub – 1.16

1 kg of sugar – 0.93

1 music CD – 5.8

1 ticket of public bus – 0.29

1 dish of the day – 2.32

State social insurance is one of the most important parts of the social security system in Lithuania. Its goal is to provide the insured and their family members with the means of subsistence when they are not able to get income otherwise.

State social insurance system is based on the principle of solidarity: working people while paying contributions support the retired, disabled and unemployed people who get the appropriate benefits. Uninsured persons do not have such social indemnities.

Private insurance is still not popular in Lithuania and is used by a small part of the population with high income.

State Social Insurance Board “SODRA” – www.sodra.lt.

Social security general

organisation

Social security sickness

insurance

In order to get sickness benefit, the length of sickness social insurance of the insured person shall be not shorter than 3 months within the last 12 months or 6 months within the last 24 months.

The employer pays sickness benefit for the first two days of the illness. It cannot be less than 80% or greater than 100% of the average earnings of the benefit recipient.

From the third calendar day of incapacity, sickness benefit accounting for 85% of compensated earnings is paid from the State Social Insurance Fund.

Social security family

benefits

Family allowance benefits are provided by state and municipalities to families with low incomes.

Maternity benefits are paid by State Social Insurance Board.

For 70 calendar days until child’s birth and for 56 calendar days after child’s birth – 100 % of average salary of the benefit receiver.

Maternity (paternity) benefit shall be paid during the period of the child younger than 1 year. Its size shall be 85 per cent of average salary of the benefit receiver.

Lump sum for every born child is 1 040 Lt (301 €).

Social security family

benefits

Children have their own money called “Child money”. Children till the age 3 receive 93,75 Lt (27€) per month

in families with one or two children. In families with more than two children – 137,50 Lt (40€) per month.

The “child’s money” – a 53 Lt (15€) benefit – is received by all children from the age 3 to 9 growing in families with one or two children.

Children in families with more children receive such benefits until they reach the age of 18 years and more while they are students.

“Child’s money” are paid by Municipalitie’s Social Work Departments.

Social security unemployment

benefits

Conditions for entitlement – have to have 18 months work experience during 36 months;

duration of benefits – from 6 to 9 months (depending on work experience);

The unemployment benefit’s amount varies from 205 Lt (59,42 €) to 949.2 Lt (275,13 €) depending on work experience and previous earnings.

Statistical data There were 32 600 foreigners in Lithuania

or 0,95% of all inhabitants on the 1st of October 2005.

1/5 or about 6 500 of them came to Lithuania from the EU countries.

25 600 of them have residental status and more than 7 000 live temporary.

Thank you for your attention!

Documents

LITHUANIA EURES adviser Karolina Kleinotaite Gorodnicenko