Global Payroll Services in Lithuania

Already have a Lithuanian entity, or running payroll across several countries? We place you with a vetted Lithuanian payroll partner who keeps GPM, Sodra, and filings exactly right, while you stay the legal employer and we stay on your side.

  • Independent advice
  • Vetted partners
  • Multi-country ready

What running payroll in Lithuania involves

If you already employ people through your own Lithuanian entity (a UAB), you stay the legal employer, but you still have to run Lithuanian payroll correctly every month. The State Tax Inspectorate (VMI) and Sodra run a well-integrated system, which means errors are visible and penalties are real. This is where a specialist payroll partner earns its place: you keep the employment relationship, they keep the mechanics right.

01

You stay the employer

You stay the legal employer of your Lithuanian staff. The payroll partner runs the monthly mechanics; you keep the employment relationship.

02

Accurate every cycle

GPM and Sodra calculated and withheld correctly, payslips issued, and filings made to VMI and Sodra on schedule, every month.

03

Multi-country consolidation

Run payroll across several markets under one partner and one process, rather than a different vendor and standard in every country.

How managed Lithuanian payroll works, step by step

From onboarding your employee data to filing and reconciliation.

01 — Scope & onboard

We map your entity, headcount, and pay structure, place you with the right vetted Lithuanian payroll partner, and onboard your employee data.

02 — Set up calculations

GPM bands, Sodra rates, and any statutory benefits configured correctly to current Lithuanian law, so every payslip is right from the first run.

03 — Run monthly payroll

Salaries calculated, GPM and Sodra withheld, payslips issued, and people paid on schedule, every cycle.

04 — File & reconcile

Filings to VMI and Sodra made on time, with year-end reconciliation handled for you.

What payroll in Lithuania costs

Your statutory employer costs, plus a payroll partner fee. Lithuania’s employer burden is low; the value of the partner is accuracy and time, in a system where mistakes are visible and penalised.

Employer Sodra

One of the lowest employer rates in Europe: only about 1.77% on top of gross, calculated correctly every payroll cycle. Lithuania shifts most of the social burden to the employee side (19.5%).

Minimum wage (2026)

€1,153 per month (€7.05 per hour) in 2026, the statutory floor for full-time work.

Income tax (employee)

Progressive 20% / 25% / 32% (2026 reform), withheld via GPM. Borne by the employee, calculated and filed correctly each month.

Payroll partner fee

A transparent per-employee or per-payslip fee. We benchmark across our vetted network, typically 15 to 25% below going direct.

Why run it through Bradford Jacobs

One partner, many countries

If you run payroll across several markets, we consolidate it through vetted partners under one point of contact, not a different vendor and a different standard in every country.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

Pricing you can’t get direct

Lithuania’s employer Sodra cost, a flat 1.77% for permanent contracts, does not change by provider. The processing fee on top of it does. We benchmark that fee across our payroll network for rates typically 15 to 25% below going direct, and renegotiate it for you at renewal.

  • 15-25% below direct
  • Network benchmarking
  • Renegotiated for you

Lithuanian regulations that expose risk

The GPM bands, the Sodra notifications, the 2026 reform changes, the year-end filings. We place you with partners who get the specifics right, and we stay on your side if anything needs escalating.

  • Direct escalation
  • No support queues
  • Named account contact

20+ years and the local detail

Two decades running compliant payroll across Europe and the Baltics, the deadlines, the filings, the year-end detail that exposes risk.

  • Two decades of payroll
  • Deadlines & filings
  • Year-end handled

Built to scale across markets

Run payroll in one country or twenty through one partner and one process. As you add markets, the standard does not fragment, you keep a single point of contact and consistent compliance everywhere.

  • One process everywhere
  • Single point of contact
  • Consistent compliance

The mistakes Sodra spots first

These are top mistakes that foreign employers make that could be costly and why a specialist payroll partner pays for itself.

GPM & Sodra bands

Getting the bands right means:

  • Getting the 2026 GPM bands wrong after the reform
  • Misapplying the employer versus employee Sodra split
  • Missing statutory benefit or leave entitlements under the Labour Code
  • Each is easy to get wrong alone and visible to VMI when you do

Filings, deadlines & reporting

Late GPM or Sodra remittance, where penalties and interest apply automatically. None of these are hard for a specialist; all are easy to get wrong alone. That is why getting your Lithuanian payroll partner right is important.

What managed payroll covers

One transparent fee covers the full monthly payroll cycle. No hidden extras.

GPM & Sodra

GPM withholding and Sodra contributions calculated correctly every run, including the 2026 reform changes.

Payroll & filings

Payslips issued, people paid on schedule, and monthly declarations filed with VMI and Sodra on time.

Statutory benefits

All statutory benefits administered: annual leave, sick pay, parental leave, notice and severance.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on running compliant payroll in Lithuania.

Do I need a Lithuanian entity to use payroll services?

Yes. Payroll outsourcing assumes you are the legal employer, which usually means you have a Lithuanian entity (a UAB). If you have no entity and do not want one yet, you need an EOR instead, where the partner is the legal employer. We will confirm which applies to you.

GPM calculation and remittance, employer and employee Sodra, statutory benefits and leave, payslips, and all filings to VMI and Sodra, with year-end reconciliation. You keep the employment relationship; they keep it compliant and on time.

The 2026 reform reshaped the progressive income tax bands (20% / 25% / 32% via GPM). A good payroll partner applies the current bands correctly so withholding is right from the first run. Getting it wrong is one of the most common post-reform mistakes.

Less than most of Western Europe. Employer Sodra is around 1.77% on top of gross; the larger 19.5% social contribution is borne by the employee. Add the transparent payroll partner fee and you have your all-in cost.

Yes, and it is one of the main reasons companies come to us. One point of contact and a consistent process across markets, rather than a separate provider and a different standard in every country.

Yes. When you incorporate and become the legal employer, we move your people from the EOR arrangement onto your own compliant Lithuanian payroll, and manage the handover so nothing is missed.

Need compliant payroll in Lithuania?

Tell us your entity setup and headcount and we will come back with the right partner and pricing you will not get direct, usually within a day. One process, every country you operate in.

Tax and labour data verified June 2026 (VMI, PwC, OECD). Figures change; we confirm the current position when we scope your payroll.