Accounting of Wages Lithuania
Accounting of Wages in Lithuania – Accurate, Compliant & Streamlined Payroll Support for Your Business
Effective wage accounting is at the heart of every well-managed business. In Lithuania, companies are required to adhere to strict laws concerning wage reporting, salary payments, and employer-employee financial relationships. Whether you’re a local business or an international firm with employees in Lithuania, managing the accounting of wages requires more than simple payroll—it demands legal precision, tax expertise, and full regulatory compliance.
At UAB “AM Law”, we offer comprehensive accounting of wages services in Lithuania, ensuring accurate salary tracking, proper tax deductions, social contribution calculations, and timely reporting to local authorities. Our solutions are tailored to match your business structure and industry, giving you clarity, security, and peace of mind.
Why Accurate Wage Accounting Matters
In Lithuania, wage accounting is not just an internal HR function—it is a legal obligation that can directly impact your company’s financial health and reputation.
Here’s why precise accounting of wages is essential:
- Ensures legal compliance with labor, tax, and social security regulations
- Reduces risk of fines or audits from authorities like Sodra and VMI
- Promotes transparency and trust between employer and employees
- Improves financial planning and cost forecasting
- Supports strategic decision-making on workforce management
Mistakes in wage accounting can result in penalties, employee disputes, and unwanted inspections. Partnering with professionals ensures everything is done right from the start.
Who Needs Wage Accounting Services in Lithuania?
Our services are designed for:
- Lithuanian businesses with growing teams
- Foreign investors hiring in Lithuania
- Startups needing outsourced payroll and wage support
- Companies managing hybrid or remote teams
- Enterprises undergoing audits or seeking better financial control
Whether you have one employee or hundreds, our wage accounting services scale to fit your operation.
What’s Included in Wage Accounting Services?
We provide comprehensive accounting of wages—handling everything from gross-to-net calculations to monthly government reporting.
1. Gross-to-Net Salary Calculations
We ensure all employee wages are accurately calculated, including:
- Base salary
- Bonuses, commissions, and performance incentives
- Overtime pay and shift differentials
- Sick leave, maternity/paternity pay, and holiday pay adjustments
- Part-time, freelance, and contract employee accounting
2. Tax and Social Contribution Deductions
We ensure accurate deductions for:
- GPM (Personal Income Tax) – Standard rate of 20% applied as required
- Sodra Contributions – Employer and employee social security obligations
- Pension, health insurance, and unemployment fund deductions
- Special contribution requirements for foreign employees or non-residents
3. Monthly Reporting to Authorities
We prepare and submit all required monthly reports to:
- Sodra (Lithuanian Social Security Administration)
- VMI (State Tax Inspectorate)
This includes:
- Employee income reports
- Employer contribution declarations
- Tax payment confirmations
4. Digital Payslip Generation
Each employee receives a legally compliant, detailed payslip that includes:
- Gross salary
- Tax deductions
- Net salary
- Total contributions made
Payslips are delivered securely and stored according to GDPR and local regulations.
5. Year-End Payroll and Wage Reports
At the close of the year, we prepare:
Wage cost analysis reports for company records
Employee annual income statements
Annual summaries for VMI and Sodra
Audit-ready payroll documentation
How the Wage Accounting Process Works
We follow a streamlined, efficient process for every client:
Step 1: Setup and Configuration
We assess your employment structure and payroll policies. We collect employee data and set up wage tracking systems tailored to your organization.
Step 2: Monthly Data Collection
You submit the relevant data (hours worked, bonuses, sick leave, new hires, etc.) to us monthly.
Step 3: Calculation and Validation
Our team handles all wage calculations, tax deductions, and contribution tracking. We verify for accuracy before processing.
Step 4: Report Generation and Filing
We generate payslips, wage reports, and declarations for Lithuanian authorities, submitting them on your behalf.
Step 5: Continuous Support and Updates
We monitor regulation changes, manage compliance, and provide consulting when adjustments are needed.
Why Choose AM Law for Accounting of Wages in Lithuania?
Legal and Financial Expertise
As a law firm with a strong financial and accounting division, AM Law combines legal precision with tax and payroll expertise—making us a one-stop solution for wage accounting.
Personalized and Scalable Service
From one employee to hundreds, we adjust our services to fit your company’s structure and growth plan. We provide hands-on support with clear communication.
Full Legal Compliance
We stay on top of changing tax and labor laws in Lithuania to protect your business from unexpected penalties or non-compliance issues.
Transparent, Fixed Pricing
Our wage accounting packages are clearly priced based on your team size and service scope—no hidden costs.
Confidential and Secure
We use encrypted systems and maintain GDPR-compliant practices, ensuring all payroll and employee data remains confidential.
Lithuanian Payroll Compliance: What Employers Must Know
The Lithuanian labor and tax system requires precise wage reporting. Here are key compliance elements:
- Minimum Monthly Salary – Must meet government minimum wage laws
- Tax Reporting – GPM (income tax) and Sodra filings must be submitted monthly
- Payslips – Required by law for every payment cycle
- Leave Management – Accurate accounting for paid/unpaid leave, holidays, and illness
- Third-Party Contributions – Must be calculated and paid for each employee correctly
- Deadlines – All submissions to Sodra and VMI must be timely to avoid penalties
Our services are built to ensure every requirement is met, every time.
Industries We Support
Our wage accounting clients include companies from:
- Information Technology and Startups
- Retail and E-commerce
- Logistics and Transportation
- Manufacturing and Construction
- Hospitality and Food Service
- Professional Services and Consulting
- Healthcare and Education
Whatever your industry, we build systems that reflect your working model and meet your workforce needs.
Frequently Asked Questions
Q: Can you handle accounting for hourly and freelance workers?
Yes. We account for hourly wages, project-based pay, and non-standard contracts.
Q: What happens if there’s a tax audit?
We prepare all necessary documentation and represent you during audits to ensure a smooth review process.
Q: How soon can we switch to your wage accounting services?
Setup can begin immediately. Most businesses are fully transitioned within 3–5 working days, depending on company size and documentation availability.
Q: Do you offer services in English for foreign business owners?
Absolutely. We provide full English support and documentation for international clients.
Let AM Law Handle Your Wage Accounting with Precision
Wage accounting in Lithuania requires more than just numbers—it demands legal accuracy, consistent reporting, and up-to-date knowledge of regulatory changes. At UAB “AM Law”, we’re committed to providing a stress-free solution for your company’s wage management.
We handle the details, so you can focus on growing your business.
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.