Employee Salary Processing Lithuania
Employee Salary Processing in Lithuania – Accuracy, Compliance, and Trust You Can Count On
When it comes to running a successful business, one of the most essential responsibilities is ensuring your employees are paid accurately and on time. In Lithuania, employee salary processing is not just about transferring funds — it requires a firm grasp of tax law, social contributions, labor regulations, and meticulous record-keeping.
At UAB “AM Law”, we offer reliable and fully compliant employee salary processing services in Lithuania for companies of all sizes and industries. Our goal is simple: help you avoid payroll errors, ensure complete legal compliance, and give your employees the clarity and confidence they deserve.
Why Employee Salary Processing Matters
An efficient salary processing system ensures:
- On-time and error-free salary payments
- Accurate tax and social security deductions
- Proper documentation and reporting
- Employee satisfaction and trust
- Full legal compliance with Lithuanian labor law and tax regulations
Mistakes in salary processing can lead to serious consequences such as fines, audits, and employee dissatisfaction. That’s why businesses in Lithuania rely on our professional payroll services.
Who Can Benefit from Our Salary Processing Services?
We serve a broad range of clients including:
- Small to medium-sized enterprises (SMEs)
- Startups with limited HR resources
- Foreign investors with staff in Lithuania
- Remote teams and hybrid workplaces
- Companies hiring both local and international employees
Whether you’re managing a lean team or a rapidly growing workforce, AM Law delivers structured, scalable salary processing that keeps your business compliant and your team confident.
What’s Included in Our Employee Salary Processing Services?
We offer complete end-to-end solutions tailored to your company’s unique setup and industry requirements.
1. Salary Calculation and Gross-to-Net Conversion
Our payroll experts calculate employee wages based on working hours, contracts, bonuses, overtime, and benefits. We handle:
- Base salary processing
- Variable pay (commissions, bonuses, incentives)
- Overtime and shift differentials
- Sick leave, vacation pay, and public holiday calculations
2. Tax Withholding and Social Contributions
We ensure accurate deductions for:
- GPM (Income Tax) – typically 20%, depending on the employee’s tax status
- Sodra Contributions – including pension, health, and unemployment insurance
- Additional employer obligations based on contract type and employment category
3. Payslip Generation and Delivery
Each employee receives a clear, professional digital payslip detailing:
- Gross salary
- Deductions (taxes and contributions)
- Net take-home pay
- Leave balances (if applicable)
Payslips are delivered confidentially and securely via encrypted digital systems.
4. Monthly Reporting and Submissions
We take care of mandatory monthly submissions to:
- Sodra (Social Security Fund Administration)
- VMI (State Tax Inspectorate)
This includes all payroll declarations, summaries, and required payment records—filed on time, every time.
5. Year-End Reporting and Documentation
We prepare:
Documents required by the Lithuanian authorities for review or inspection
Annual income summaries for employees
Year-end payroll reports for auditing
Why Choose AM Law for Employee Salary Processing?
Extensive Legal and Financial Expertise
Unlike general payroll providers, AM Law combines legal precision with accounting accuracy. Our payroll services are backed by a team of experienced lawyers and financial professionals who understand both the legal and technical sides of payroll processing in Lithuania.
Tailored Solutions for Every Business
No two companies are the same. We tailor our services based on your industry, employee structure, and internal workflows—ensuring efficiency, accuracy, and total satisfaction.
Secure and GDPR-Compliant
All data is handled using secure systems, fully compliant with Lithuania’s data protection regulations and GDPR guidelines.
Transparent and Competitive Pricing
Our fixed-fee structures ensure you always know what you’re paying for—no hidden charges or unexpected costs.
Step-by-Step Payroll Process with AM Law
Here’s how we make your salary processing simple and seamless:
Step 1: Setup and Employee Registration
We collect relevant employee data, contracts, and working hour agreements. Then we register your employees with Sodra and configure their tax and contribution status.
Step 2: Monthly Inputs
Each month, you submit the necessary data (hours worked, bonuses, leaves). We handle everything from there.
Step 3: Payroll Execution
We process gross-to-net salary calculations, create payslips, and submit reports to Sodra and VMI.
Step 4: Bank Transfers (Optional)
We can initiate or support salary transfers to employee bank accounts upon request.
Step 5: Reporting and Support
You receive monthly payroll summaries, and your employees receive their payslips. We remain available to answer any employee or management questions related to payroll.
Legal Considerations for Salary Processing in Lithuania
Lithuania has a well-structured payroll and labor framework that requires companies to follow strict regulations:
- Minimum Monthly Salary (MMS): Updated annually by the government
- GPM (Personal Income Tax): Standard withholding rate of 20%, though exemptions or reductions may apply
- Sodra Contributions: Both employer and employee contributions are mandatory
- Timely Payments: Employees must be paid on agreed dates; late payments may result in penalties
- Transparent Deductions: All deductions must be reported to both the employee and authorities
Failure to meet these obligations can result in fines, employee complaints, or tax audits. Partnering with AM Law ensures these issues are avoided altogether.
Serving All Industries
Our salary processing services are trusted by businesses in:
- Technology and IT
- Manufacturing and Logistics
- Retail and E-commerce
- Hospitality and Tourism
- Construction and Real Estate
- Healthcare and Education
- Finance and Consulting
No matter your sector, we deliver industry-specific payroll solutions that support your business model and workforce structure.
Frequently Asked Questions
Q: How long does it take to set up employee salary processing?
Setup typically takes 3–5 business days once all documents are received.
Q: Can you manage payroll for part-time or hourly employees?
Yes. Our systems support various employment types, including part-time, hourly, remote, and project-based roles.
Q: What happens during an audit?
We assist in preparing and submitting all necessary payroll documentation and answer queries from auditors on your behalf.
Q: Do you offer additional services like HR or contract preparation?
Absolutely. We also assist with HR document creation, employment contracts, tax registration, and legal advisory for labor matters.
Let AM Law Handle Your Payroll—So You Can Focus on Growth
Running a business in Lithuania is rewarding—but managing payroll can be complex. With AM Law’s employee salary processing services, you don’t need to worry about compliance, calculations, or reporting. We take care of every detail.
You get:
Professional support year-round
Timely and accurate salary payments
Secure payslip distribution
Tax and social contribution compliance
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.