Payroll Outsourcing Lithuania
Payroll Outsourcing in Lithuania – Smart, Compliant, and Cost-Effective Solutions for Your Business
Managing payroll in-house can be a complex and time-consuming task, especially when navigating Lithuania’s strict employment and tax regulations. From calculating wages and handling taxes to reporting to state institutions, payroll requires a high level of accuracy, confidentiality, and legal knowledge.
At UAB “AM Law”, we provide end-to-end payroll outsourcing services in Lithuania, allowing your company to focus on its core operations while we take care of salary calculations, compliance, and statutory filings. Our clients range from small startups to large international enterprises, and we’re here to make your payroll smooth, secure, and stress-free.
Why Outsource Payroll in Lithuania?
Outsourcing payroll isn’t just about convenience—it’s a strategic move. Here’s why more companies in Lithuania are choosing to outsource their payroll operations:
Scale Easily: Whether you’re hiring 5 or 500 employees, our systems scale with your business needs.
Avoid Costly Errors: Payroll mistakes can lead to penalties, legal claims, and unhappy employees.
Ensure Compliance: Lithuania has strict labor, tax, and social security laws. We keep you compliant.
Save Time and Resources: Free your HR and finance teams to focus on strategic tasks instead of administrative ones.
Access Local Expertise: Our specialists understand the nuances of Lithuanian payroll legislation and reporting.
Who Benefits from Payroll Outsourcing?
Our payroll outsourcing services are ideal for:
- Small and medium-sized enterprises (SMEs) with no in-house payroll team
- Startups expanding rapidly in Lithuania
- International companies with local operations
- Businesses employing remote or freelance staff
- Firms needing temporary or project-based payroll management
No matter your industry or company size, we build a payroll outsourcing solution tailored to your exact needs.
What’s Included in Our Payroll Outsourcing Services?
We offer a full spectrum of payroll management tasks, so you never have to worry about compliance, deadlines, or technicalities.
1. Employee Registration and Setup
- Registration of employees with Sodra
- Setup of employment contracts and salary structures
- Collection and verification of personal and tax information
2. Monthly Payroll Processing
- Gross-to-net salary calculations
- Overtime, bonus, and leave adjustments
- Sick leave and holiday pay computation
- Net salary transfers and payroll fund management (if needed)
3. Tax and Social Security Compliance
- Withholding and remitting GPM (income tax)
- Calculating and submitting Sodra (social security) contributions
- Preparing monthly and annual declarations to VMI and Sodra
4. Payslip Generation and Distribution
- Digital payslips delivered securely to employees
- Detailed breakdowns of salary, deductions, and take-home pay
- GDPR-compliant data handling and encryption
5. Reporting and Year-End Filings
Preparation of documents for audits or labor inspections
Monthly payroll reports for internal use
Year-end income reports for employees and tax authorities
How Our Payroll Outsourcing Process Works
We’ve streamlined the payroll outsourcing process to ensure smooth onboarding and stress-free monthly operations:
Step 1: Onboarding
We begin with a detailed analysis of your company’s payroll structure. Our team collects employee data, reviews contracts, and sets up your payroll profile.
Step 2: Monthly Input
You send us any updates—working hours, bonuses, sick leave, new hires, or departures. We handle the rest.
Step 3: Payroll Execution
We calculate wages, apply legal deductions, prepare payslips, and generate compliance reports. Payments are processed or submitted to your finance team for review.
Step 4: Government Reporting
We submit all required reports and declarations to Sodra and VMI on your behalf, on time and error-free.
Step 5: Ongoing Support
We provide year-round guidance on payroll-related legal changes, audits, and employee queries.
Why Choose AM Law for Payroll Outsourcing in Lithuania?
Experienced Payroll Professionals
Our team includes experts in Lithuanian tax law, labor law, and finance—so your payroll is always in good hands.
Compliance-Centric Approach
We don’t just process numbers—we ensure your payroll complies with evolving legislation to minimize risk.
Personalized Service
You’ll work with a dedicated payroll manager who knows your business and offers support tailored to your operations.
Confidential and Secure
We use encrypted systems and GDPR-compliant procedures to protect sensitive employee and company data.
Transparent Pricing
Our payroll packages are priced clearly, with no hidden fees. Whether you have 5 or 50 employees, we offer affordable, flexible plans.
Understanding Payroll Regulations in Lithuania
Payroll in Lithuania must adhere to several key regulations, including:
- Minimum Wage: Updated annually by the government and must be adhered to.
- GPM (Personal Income Tax): Typically 20%, withheld from the employee’s gross salary.
- Sodra Contributions: Both the employer and employee must contribute to Lithuania’s social insurance fund.
- Payslip Requirements: Every employee must receive a payslip showing all deductions and net pay.
- Submission Deadlines: Late submissions to Sodra or VMI can result in fines or legal penalties.
- Holiday and Sick Pay: Accurate tracking of leave, sick days, and holidays is mandatory.
Our experts stay updated with every change in legislation to ensure your payroll remains compliant at all times.
Industries We Serve
We manage payroll outsourcing for a wide range of sectors, including:
- Technology and Startups
- Retail and E-Commerce
- Manufacturing and Construction
- Logistics and Transportation
- Hospitality and Food Services
- Healthcare and Education
- Professional Services and Consulting
Whether you’re hiring your first employee or managing a team of 200, we provide reliable payroll outsourcing built to grow with your business.
Frequently Asked Questions
Q: How quickly can you start managing our payroll?
Onboarding typically takes 3–5 working days, depending on how quickly we receive the necessary documents and employee data.
Q: Can you handle payroll for international employees or remote workers?
Yes, we offer tailored payroll solutions for both residents and non-residents, including remote or hybrid team members.
Q: Will we retain access to reports and employee information?
Absolutely. We provide secure access to all reports, payslips, and payroll data at your convenience.
Q: Can you manage salary payments too?
Yes, upon request, we can handle direct payments to your employees through integrated banking systems.
Let’s Make Payroll Simpler and Smarter
Payroll doesn’t need to be complicated. With AM Law’s payroll outsourcing services in Lithuania, you gain a trusted partner who handles all calculations, filings, and compliance concerns—leaving you with peace of mind and more time to grow 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.