Payroll Management Lithuania
Payroll Management in Lithuania – Precision, Compliance, and Strategic Support for Every Business
Payroll is more than just issuing paychecks—it’s a vital part of a company’s financial ecosystem. In Lithuania, managing payroll requires in-depth knowledge of tax regulations, labor laws, social security contributions, and precise recordkeeping. Without expert guidance, companies risk non-compliance, penalties, and employee dissatisfaction.
At UAB “AM Law”, we provide comprehensive payroll management services in Lithuania, designed to relieve your internal team from administrative burdens while ensuring full compliance with Lithuanian law. Whether you operate a small business or manage a growing enterprise, we simplify payroll so you can focus on your strategic goals.
Why Payroll Management Matters
Efficient payroll management is key to maintaining trust with employees, managing cash flow, and staying on the right side of the law. In Lithuania, companies must adhere to complex payroll regulations including:
- Monthly income tax withholding (GPM)
- Mandatory social insurance (Sodra) contributions
- Accurate salary calculations for sick leave, bonuses, and holidays
- Timely reporting to the State Tax Inspectorate (VMI) and Sodra
- Providing payslips and maintaining payroll documentation
AM Law ensures every aspect of your payroll process is handled with precision and accountability.
Who Needs Payroll Management Services in Lithuania?
Our payroll management services are designed for:
- Lithuanian businesses with growing employee bases
- Foreign companies hiring employees in Lithuania
- Startups looking to outsource payroll and HR functions
- Employers managing remote or freelance workers
- International investors needing a compliant payroll framework
If you need a reliable partner to manage payroll while you focus on building your team and business, AM Law is here to help.
What’s Included in Our Payroll Management Services?
We provide end-to-end payroll management tailored to your company’s size, industry, and structure. Our services include everything needed for accurate, legal, and smooth payroll operations.
1. Employee Onboarding and Registration
- Registration of employees with Sodra
- Setting up employment contracts and wage structures
- Tax code classification and benefits configuration
2. Monthly Payroll Processing
- Calculation of gross and net salaries
- Processing bonuses, overtime, night shift pay, and commissions
- Adjustments for absences, sick days, holidays, and maternity/paternity leave
- Generation of payroll summaries and digital payslips
3. Tax and Social Security Reporting
- Filing mandatory monthly declarations to VMI and Sodra
- Calculation of income tax and social contributions
- Ensuring compliance with national minimum wage regulations
- Managing employer obligations for third-country employees or non-residents
4. Annual Reporting and Documentation
- Preparation of annual employee income reports
- End-of-year declarations for tax and audit purposes
- Payroll archives and documentation for inspections
5. Payroll Consulting and Compliance Checks
Monitoring of legal updates and compliance risk assessments
Advice on Lithuanian labor and tax regulations
Implementation of payroll policies and structures
Why Choose AM Law for Payroll Management in Lithuania?
Legal and Financial Expertise Combined
We’re not just accountants—we’re legal professionals, too. Our dual focus allows us to approach payroll management from both a legal and financial standpoint, offering peace of mind to local and international clients.
Personalized, Scalable Service
Whether you have 3 employees or 300, our solutions are scalable. As your team grows, our systems adapt to ensure payroll remains streamlined and stress-free.
Transparent, Fixed Pricing
We offer flat-fee packages tailored to your headcount and complexity—no surprises or hidden costs.
GDPR-Compliant Data Handling
Payroll involves sensitive personal data. We handle every document and database entry with strict GDPR protocols and encrypted storage.
Single Point of Contact
You get a dedicated payroll manager who understands your business and responds quickly to any changes or questions.
Our Payroll Process – How It Works
Our payroll process is built around efficiency and accuracy:
Step 1: Setup and Customization
We review your employment structure, contracts, and compensation policies. Then, we set up your payroll system based on your needs.
Step 2: Monthly Input
You provide monthly updates—hours worked, bonuses, leave days, etc. We do the rest.
Step 3: Calculations and Payments
We calculate gross and net salaries, taxes, and contributions. If desired, we can process salary payments directly via bank transfers.
Step 4: Reporting and Compliance
We file all necessary documents with Sodra and VMI. You receive detailed reports and digital payslips.
Step 5: Ongoing Support
We remain available throughout the year for consultations, audits, regulatory changes, or employee inquiries.
Payroll Compliance in Lithuania: What You Must Know
Staying compliant with payroll regulations is non-negotiable in Lithuania. Here’s what companies must follow:
- Minimum Monthly Wage: Employers must pay at least the government-mandated minimum wage.
- Income Tax (GPM): Withheld from employees at a standard rate of 20%, with potential adjustments.
- Sodra Contributions: Both employer and employee must contribute to social insurance (rates vary).
- Payslip Requirements: Every employee is entitled to receive a payslip showing salary breakdown.
- Leave and Absence Management: Salaries must be adjusted for public holidays, sick leave, and vacations, according to labor laws.
- Filing Deadlines: Monthly declarations must be submitted on time to avoid fines or audits.
With AM Law, your business will never miss a requirement or deadline.
Serving All Sectors and Business Types
We manage payroll for clients across a wide range of industries, including:
- Technology and Startups
- Manufacturing and Logistics
- Retail and E-commerce
- Hospitality and Restaurants
- Construction and Real Estate
- Healthcare and Education
Our team understands the unique payroll needs of each industry and can adapt systems accordingly.
Frequently Asked Questions
Q: Can you manage payroll for remote employees or freelancers?
Yes. We offer flexible payroll management for part-time, remote, and contract workers, both in Lithuania and abroad.
Q: Is it possible to handle salary payments through your service?
Absolutely. We can process employee salary transfers securely via bank integration.
Q: What if I have a mix of Lithuanian and non-Lithuanian employees?
No problem. We have experience handling payroll for both residents and non-residents, including third-country nationals.
Q: Will you inform us of legal changes affecting payroll?
Yes. Our team monitors legal and regulatory updates and will alert you to any changes that require action.
Let AM Law Simplify Your Payroll Management
Payroll doesn’t have to be complicated or stressful. Let UAB “AM Law” take over the responsibility of salary processing, tax filings, and regulatory compliance—so you can focus on managing and growing your team.
Whether you’re new to Lithuania or scaling rapidly, our firm offers a reliable and legally sound payroll management solution that meets your current and future needs.
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.