Wage Calculation Services Lithuania
Wage Calculation Services in Lithuania – Precision, Compliance, and Peace of Mind
Accurate wage calculation is the foundation of a healthy and legally compliant business operation. In Lithuania, where payroll regulations and tax systems are detailed and continually evolving, professional wage calculation is essential for ensuring that employees are paid fairly, taxes are handled correctly, and companies stay compliant with local laws.
At UAB “AM Law”, we offer professional wage calculation services in Lithuania that go far beyond simple math. With a deep understanding of Lithuanian labor law, tax systems, and social insurance requirements, our firm provides complete and tailored solutions that help your business operate smoothly and efficiently.
Why Wage Calculation Services Are Crucial in Lithuania
Wage calculation may seem straightforward at first glance—just salary minus taxes. But in Lithuania, proper wage calculation involves numerous factors:
- Income tax deductions (GPM)
- Sodra (social security) contributions
- Sick leave compensation
- Overtime and night shift bonuses
- Holiday pay and unpaid leave deductions
- Severance pay calculations
- Compliance with minimum wage standards
Mistakes in wage calculations can lead to employee dissatisfaction, legal issues, and fines from tax authorities. That’s why many companies in Lithuania trust AM Law to manage this critical process.
Who Can Benefit From Our Wage Calculation Services?
Our wage calculation services are ideal for a wide variety of clients:
- Small and medium-sized businesses (SMEs)
- Foreign companies with local employees
- Startups with flexible compensation models
- Manufacturers, retailers, and logistics firms
- Freelancers and consultants with assistants or part-time staff
- HR departments looking for external payroll support
Whether you manage a growing team or are preparing to hire your first employee, AM Law ensures that your wage calculations are accurate, compliant, and effortless.
What’s Included in Our Wage Calculation Services?
We offer a full range of wage-related accounting services, customized to fit your company’s structure, employee types, and compensation policies.
Gross and Net Wage Calculations
We calculate employee salaries by factoring in working hours, bonuses, overtime, deductions, and more. You receive detailed reports showing gross pay, taxes withheld, and net salary payable.
Income Tax (GPM) Deductions
Our team calculates personal income tax according to the latest legislation and ensures proper monthly withholding and reporting.
Sodra Contributions
We handle the accurate calculation and declaration of mandatory social security contributions, including health insurance, pension, maternity, and unemployment insurance.
Leave and Absence Calculations
We compute salaries for employees on sick leave, maternity leave, unpaid leave, and vacations, ensuring correct compensation and reporting.
Bonus and Overtime Pay
When your employees work beyond regular hours or receive bonuses, we calculate the correct pay, tax adjustments, and contributions.
Wage Adjustment and Offboarding
If an employee resigns, is dismissed, or receives a raise or salary reduction, we manage the updated calculations, including final settlements and statutory deductions.
Payslip Generation
We create clear, compliant, and easy-to-understand payslips for all employees, with a breakdown of earnings and deductions.
Why Choose AM Law for Wage Calculation in Lithuania?
Extensive Knowledge of Labor and Tax Law
Our wage calculation experts understand the Lithuanian Labor Code, Sodra regulations, and income tax rules inside out. You can rely on our deep expertise to ensure 100% compliance.
Tailored Services for Your Business
Every company is different. We offer personalized service packages based on your headcount, industry, and employment types—ensuring you pay only for what you need.
Accuracy You Can Count On
We use up-to-date systems and manual checks to ensure that every wage calculation is accurate and legally sound—no missed deductions, no overpayments, no surprises.
Secure and Confidential
We maintain the highest standards of data security and confidentiality for all your payroll and employee information.
Integration with Other Services
If needed, we also offer VAT registration, tax consulting, company formation, and full payroll management—giving you a single partner for all your compliance needs.
How the Process Works
Our wage calculation services are simple, streamlined, and structured to save your time.
Step 1: Initial Consultation
We meet with your HR or management team to understand your payroll structure, employee contracts, and calculation requirements.
Step 2: Employee Data Collection
You provide work schedules, bonuses, leave details, and employment agreements. We’ll set up your wage system.
Step 3: Monthly Wage Calculation
We calculate all salaries based on hours worked, bonuses, leave, and taxes. You receive a summary report and digital payslips for distribution.
Step 4: Reporting and Filing
We file declarations to Sodra and the Tax Inspectorate (VMI) on your behalf, ensuring full compliance with all wage-related obligations.
Compliance in Wage Calculation: What You Must Know
Lithuania’s wage calculation rules are complex and change regularly. Here are some critical aspects:
- Minimum Monthly Wage: Updated periodically by the Lithuanian government. Employers must ensure compliance.
- Income Tax Withholding (GPM): Typically 20% for most employees, though reduced rates or exemptions may apply.
- Sodra Contributions: Employers and employees are both responsible for making contributions to Lithuania’s social security system.
- Bonuses and Allowances: Must be taxed appropriately and declared in monthly wage reports.
- Sick Leave and Vacation Pay: Calculated based on average wages and covered partially by the employer and Sodra.
Failing to apply the correct rates or reporting methods can result in serious financial penalties. That’s why our clients trust AM Law to stay ahead of all regulatory updates.
Tools and Technologies We Use
We use advanced wage and payroll software that offers:
- Cloud-based access to wage reports
- Secure digital submission of wage data
- GDPR-compliant data storage
- Real-time report generation
- Easy integration with accounting platforms and HR systems
Our digital solutions make wage management efficient, transparent, and fully traceable.
Frequently Asked Questions
Q: What documents are required for wage calculation services?
We need employment contracts, agreed salary amounts, bonus policies, time sheets, and employee identification data. We’ll guide you through the setup.
Q: Can you handle wage calculations for part-time or remote employees?
Yes. We offer flexible services that account for different employment types, work hours, and locations.
Q: What if my business has foreign employees or expats?
We have experience managing wage calculations for foreign employees, including compliance with non-resident tax obligations and cross-border contributions.
Q: Are wage slips provided to employees directly?
Yes, we generate payslips and can send them directly to employees or to your HR team for distribution.
Trust AM Law to Handle Wage Calculations the Right Way
At AM Law, we understand that accurate wage calculation is not just about numbers—it’s about trust, reputation, and compliance. With our help, you can confidently pay your employees while focusing on growing your business.
Our services are ideal for:
Employers who value precision, security, and compliance
New businesses unfamiliar with Lithuanian wage law
Companies expanding or hiring remote teams
HR departments needing external support
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.