The Ministry of Social Security and Labour of the Republic of Lithuania has confirmed that the interest rate for late payment of wages and employment-related benefits remains at 0.1% per day (36.5% annually). Employers must pay this penalty from the first day of delay until the full amount is settled.
Key employer obligations and employee rights:
- If wages or benefits are delayed due to the employer’s fault, the 0.1% daily interest applies as long as the employee remains employed.
- If wage payments are overdue for more than two months, employees have the right to terminate their contract with a minimum of five working days’ notice. In such cases, they are entitled to severance pay:
- Two months’ average salary if employed for over a year.
- One month’s average salary if employed for less than a year.
- If wages remain unpaid after employment termination, the employee is entitled to compensation based on their average daily wage for each day of delay, instead of late payment interest. This compensation can be claimed for up to six months.
Recommendations for employers:
- Ensure timely wage payments to avoid penalties, legal claims, and reputational risks.
- Maintain clear payroll processes to prevent delays and disputes.
- If facing financial difficulties, communicate proactively with employees and seek solutions to avoid prolonged non-payment.
Our employment and migration experts are available to provide guidance on wage payment regulations, risk management strategies, or handling employment disputes.
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