HR And Payroll Services Lithuania - AM Law Firm

HR And Payroll Services Lithuania

HR And Payroll Services Lithuania

small business accounting Lithuania

HR and Payroll Services in Lithuania – Comprehensive Workforce Solutions for Growing Businesses

Efficient human resource management and accurate payroll processing are essential for business success—especially in a country like Lithuania, where labor laws, taxation, and compliance standards are constantly evolving. Whether you are a Lithuanian startup, a growing SME, or an international corporation entering the Baltic market, you need reliable partners to manage your workforce seamlessly.

At UAB “AM Law”, we provide HR and payroll services in Lithuania that go beyond basic salary processing. We offer full-service solutions tailored to your company’s structure, legal obligations, and growth goals. Our integrated approach ensures that your business stays compliant while optimizing your HR operations and empowering your employees.

Why HR and Payroll Management Matter More Than Ever

Human resources and payroll are more than just administrative tasks—they are the foundation of a productive, legally compliant, and motivated workforce. When handled improperly, they can result in penalties, employee dissatisfaction, and loss of operational efficiency.

Here’s why investing in professional HR and payroll support is critical:

Outsourcing allows business owners to focus on growth

Accurate salary payments build employee trust

Compliance prevents legal disputes and government fines

HR strategy supports recruitment, retention, and performance

Streamlined processes reduce internal administrative costs

Who Needs HR and Payroll Services in Lithuania?

Our services are ideal for:

  • Startups and SMEs that lack an in-house HR or payroll department
  • International companies expanding into Lithuania and hiring local staff
  • Fast-growing businesses looking to automate HR and payroll processes
  • Organizations employing a mix of full-time, part-time, or remote staff
  • Firms that want to reduce risks and ensure legal compliance

Whether you employ 5 or 500 people, our team provides scalable and tailored solutions that meet your needs.

Full-Scope HR and Payroll Services We Offer

We deliver a complete range of services that combine legal, financial, and human resource expertise:

1. Employee Onboarding and HR Setup

We ensure a smooth and compliant onboarding process:

  • Employment contract drafting (in Lithuanian and English)
  • Registration with Sodra and tax authorities
  • Personal file creation and document collection
  • Setting up salary structure and benefits
  • Confidential data management in line with GDPR

2. Monthly Payroll Processing

We provide accurate and timely payroll services including:

  • Salary calculations (gross-to-net)
  • Overtime, bonuses, and incentive pay inclusion
  • Sick leave and holiday adjustments
  • Social security and tax deductions
  • Payslip generation and delivery to employees

3. Tax and Social Security Reporting

We ensure full compliance with Lithuania’s tax and labor obligations:

  • Income tax (GPM) deduction and reporting
  • Sodra social security contributions (employee and employer portions)
  • Monthly and annual declarations to VMI and Sodra
  • End-of-year income summaries for each employee

4. HR Compliance and Employee Relations

Our legal and HR teams support:

  • Disciplinary procedures and employee conflict resolution
  • Labor law compliance audits
  • Staff handbook creation and policy implementation
  • Termination and redundancy process guidance
  • GDPR compliance in all HR matters

5. Leave and Attendance Management

We help you monitor and manage:

  • Annual vacation days
  • Sick leave tracking
  • Maternity/paternity leave
  • Public holiday management
  • Absence reporting for payroll accuracy

6. HR Strategy and Advisory

Our team can assist in strategic areas such as:

Employee retention planning

Workforce planning and budgeting

Performance evaluation systems

Compensation structure reviews

Recruitment and headhunting support

payroll accounting Lithuania
payroll accounting Lithuania

The AM Law Advantage

Integrated Legal + Payroll + HR Services

Our unique offering brings together HR specialists, tax professionals, and legal experts—all under one roof. This ensures consistency, efficiency, and full compliance across every HR and payroll process.

Local Expertise with International Understanding

We understand Lithuanian law and speak your language. Our services are tailored for both local companies and foreign investors managing Lithuanian employees.

Scalable for Every Stage of Growth

Whether you’re hiring your first team member or managing hundreds of employees, we offer flexible solutions that grow with your business.

Data Security and Confidentiality

We maintain strict compliance with Lithuanian and EU data protection laws, ensuring secure handling of employee data and payroll records.

Transparent, Predictable Pricing

We offer competitive, fixed monthly fees based on your workforce size and service scope—no hidden charges or confusing costs.

Key Payroll and HR Regulations in Lithuania

Understanding the rules of the game is essential for business owners and HR managers. Here’s what every employer must know:

  • Minimum Wage: Adjusted annually by the government
  • Employment Contracts: Required for all employees, including part-timers
  • GPM (Income Tax): Typically 20% for most employees
  • Sodra Contributions: Mandatory social insurance contributions from both employer and employee
  • Payslip Requirements: Employees must receive a breakdown of all deductions and net pay
  • Leave Entitlements: Employees are entitled to annual vacation, sick leave, and other forms of time off
  • Termination Rules: Must follow legal grounds and notice periods as per Labor Code

We make sure you understand and meet all of these obligations to avoid fines, disputes, or reputational damage.

Industries We Serve

We proudly support businesses across a wide variety of sectors, including:

  • Technology and Startups
  • E-commerce and Retail
  • Construction and Real Estate
  • Hospitality and Tourism
  • Healthcare and Pharmaceuticals
  • Logistics and Transportation
  • Education and Professional Services

Every industry has different HR and payroll needs—our services are customized to match.

Frequently Asked Questions

Q: Can you handle payroll and HR for remote or freelance employees?
Yes. We manage payroll and contracts for all types of workers, including remote, part-time, and gig-based employees.

Q: How long does it take to onboard with your services?
Typically, we can fully onboard your company within 3–7 business days, depending on your company size and complexity.

Q: Can we outsource only payroll, or do we have to take HR services as well?
You can choose one, the other, or both. Our services are modular—designed to fit your business model.

Q: What happens if labor laws change?
We continuously monitor regulatory changes and immediately implement updates to your processes so you stay compliant.

Q: Is your service available in English?
Yes, we offer full English support for international clients managing Lithuanian teams.

Focus on Growth—Let Us Handle HR and Payroll

Running a business is challenging enough—HR and payroll shouldn’t add more complexity. With AM Law’s HR and Payroll Services in Lithuania, you gain a reliable partner committed to ensuring your workforce is legally protected, financially accounted for, and fully supported.

payroll accounting Lithuania

Citizenship of Lithuania

Citizenship

  • Acquisition of citizenship of the Republic of Lithuania by virtue of birth.
  • Restoration of citizenship of the Republic of Lithuania.
  • Oath of Allegiance to the Republic of Lithuania.
  • Naturalisation.
  • By way of exception.
  • Simplified procedure.

Right to reinstate citizenship of the Republic of Lithuania to persons who had citizenship of the Republic of Lithuania and until 15 June 1940 and their descendants who have not acquired citizenship of the Republic of Lithuania before 2011-04-01.

We could help you to get citizenship in Lithaunia.

For jobseekers:

We are searching employees from Europe who would want to work in Lithaunian companies.

For employers:

We are dealing with recruitment companies all over the world and can suggest a variety of employees.