Educational Leave and Compensation in Lithuania: Labor Code Rules and Payroll Obligations

As the academic year begins, the State Labour Inspectorate (VDI) has issued guidance regarding statutory guarantees for employees enrolled in formal education programs. Under Article 135 of the Labor Code of the Republic of Lithuania, an employer is obligated to grant targeted educational leave upon receipt of an official certificate issued by the educational institution.

The statutory durations for leave related to formal education are established as follows:
- 3 calendar days for preparing and taking each regular examination;
- 2 calendar days for each credit test (pass/fail evaluation);
- 6 calendar days for each state graduation examination;
- 30 calendar days for completing and defending a thesis, diploma paper, master's work, or doctoral dissertation;
- for laboratory coursework and academic consultations – the number of days specified in the formal curriculum.

VDI emphasizes that employers are not legally required to grant educational leave simply for attending routine lectures. For ordinary study sessions, employees may request an individualized working schedule or utilize annual paid leave. For employees participating in non-formal adult education or self-education, up to 5 working days of educational leave per year may be granted upon 20 working days' prior notice; by law, self-education leave is unpaid.

Remuneration for educational leave depends on the employee's continuous service with the employer. If uninterrupted employment at the company exceeds 5 years, the employer must compensate educational leave of up to 10 working days per working year at a rate of no less than 50% of the employee's average wage (VDU). This compensation is subject to standard employment taxes (Personal Income Tax, State Social Insurance, and Compulsory Health Insurance) and must be reported in the monthly SAM declaration.

When an employee has less than 5 years of tenure or when the leave exceeds the 10-workday paid threshold, the educational leave is unpaid. Because unpaid educational leave constitutes a non-insured period for social insurance purposes, the employer must submit form 12-SD to Sodra using reason code 04 ("educational leave") within 3 business days from the start date of the leave.