The rules on severance pay in detail

Statutory severance in Lithuania is calculated based on the length of employment with the employer. Thus, the severance payable upon termination should amount to:

  • two average months’ salary for all the categories of the employees;
  • 0.5 average month’s salary for employees who have worked at the employer for less than 12 months.

The average salary includes basic salary plus all other employment related payments, as well as performance bonuses paid during the last three months prior to termination. 

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Author: COBALT Lithuania 

Date: December 2019