Lithuania
Late-payment interest rate for employment-related payments
Impact date: 1 February 2026
The late payment interest rate for wages or other employment-related payments, when delayed due to the employer’s fault before the termination of employment (as established in Article 147(1) of the Lithuanian Labour Code), remains at 0.1%.
Employer implications/action needed Employers must always ensure timely payment of salary and all employment-related amounts in order to avoid statutory late-payment interest.
Employer risk Financial risk, as well as employee-relations risk as delays may undermine trust and lead to complaints/disputes.
Proposed amendments to transpose the EU Pay Transparency Directive
Impact date: Not yet adopted; likely implementation by June 2026, aligning with the Directive’s transposition deadline. State institutions have publicly indicated that the relevant amendments to the Labour Code are expected to enter into force by the transposition deadline. Employers should plan and prepare on the basis that the new requirements will apply from 7 June 2026.
An updated draft amendment to the Lithuanian Labor Code has been registered to transpose the EU Pay Transparency Directive into national law. The proposed changes mainly reflect the requirements of the Directive (e.g., enhanced pay gap reporting obligations, requirements for all employers to establish formal, gender neutral remuneration systems etc.).
The draft has now been returned to the Ministry of Social Security and Labour for further improvement. As a result, the final wording of the national provisions is not yet confirmed. The regulatory approach and core employer obligations are not expected to change, as Lithuania is required to fully implement the Directive.
Employer implications/action needed
Employers must:
- familiarize themselves with the EU Pay Transparency Directive and its requirements, as well as the proposed implementation into Lithuanian law
- monitor legislative progress in Lithuania, as the draft wording is not final and may change
- plan ahead for compliance by reviewing current pay structures and identifying gaps early
- prepare to update/adopt internal policies (e.g., remuneration systems, recruitment practices) once the law is adopted. The State Labour Inspectorate has prepared recommendations for developing remuneration systems, which should help employers assess their current situation and identify the necessary actions for the practical implementation of the Directive (link: 2026-02-02 Recommendations regarding paygap.pdf (available only in Lithuanian))
Employer risk Failure to comply with the new proposed requirements could lead to disputes with employees and administrative fines. For example, failure to provide pay information to employees, their representatives or the State Labor Inspectorate could result in fines between €460 and €700 (a repeated breach could lead to fines between €700 and €1,400). These penalties may change as the transposition of the Directive is not yet finalized.
Link https://e-seimas.lrs.lt/portal/legalAct/lt/TAP/d61902e0f60811f0b9baf24db8ed7e40?jfwid=-i9h8eqryl (latest draft version, currently returned to the Ministry of Social Security and Labour for further improvement)
Amendments to the Law on the Fundamentals of Protection of the Rights of Persons with Disabilities
Impact date: 1 July 2026
Amendments to the Lithuanian Law on the Fundamentals of Protection of the Rights of Persons with Disabilities have been adopted. The Law was updated to expand Article 10, introducing a recommendation for private-sector employers with 25 or more employees to meet a certain criterion – namely, that employees with disabilities should make up at least 5% of the total workforce.
Employer implications/action needed
As it is only a recommendation, private-sector employers are free to decide whether to follow it. Employers may review their diversity and inclusion policies.
Employer risk There is no direct legal or administrative risk, as the requirement is non-binding.
Proposed amendments to the Lithuanian Labour Code
Impact date: Not yet adopted; if adopted, the amendments will enter into force on 1 November 2026.
A draft amendment to the Lithuanian Labour Code has been registered, proposing updates across several areas, including:
- allowing a probationary period of up to six months for employees whose monthly salary is at least two times the national average gross wage; for fixed-term employment contracts shorter than 12 months, the probationary period must be proportionate (i.e., shorter than six months)
- setting strict rules for the final wage settlement: the part not exceeding one month’s average wage must be paid no later than on the employment termination date, or, if agreed, within ten business days. The part exceeding one month’s average wage may be paid at another mutually agreed time, but no later than three months from the employment termination date
- Revising default interest for late payments during ongoing employment (due to the employer’s fault): default interest is payable for each delayed calendar day from the due date, with the rate approved annually by the Minister of Social Security and Labour by 1 February, and calculated using the Consumer Price Index (comparing last December with December of the previous year) multiplied by five
Employer implications/action needed
Employers must:
- review and, if necessary, adjust internal policies/template employment contracts to reflect the proposed changes (e.g., remuneration rules, settlement procedures)
- monitor the legislative process, as the draft is not yet adopted and further modifications may occur
Employer risk Failure to apply may result in employee claims and/or administrative liability for the employer.
Contact
© Eversheds Sutherland. All rights reserved. Eversheds Sutherland is a global provider of legal and other services operating through various separate and distinct legal entities. Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client.