Lithuania
Further rules regarding the implementation of the EU Pay Transparency Directive
Impact date: 31 July 2026 (came into force); employers must submit first data to Sodra by 28 February 2027 for January 2027 data
The Minister of Social Security and Labour has adopted an order setting out the relevant procedures and rules for implementing the EU Pay Transparency Directive (EU) 2023/970. The Order regulates how employers must submit remuneration data to the Social Insurance Fund Board (“Sodra”), how Sodra will calculate and provide pay indicators back to employers, the public disclosure of gender pay gap data, and the procedure for conducting a joint pay assessment where unjustified pay gaps exceeding 5% are identified.
Employer implications/action needed Employers should review their remuneration structures, job classifications and payroll data processes to ensure that the required pay information can be reported accurately to Sodra. Employers should also assess potential gender pay gaps and prepare to address any unexplained disparities before the first reporting deadline.
Employer risk Failure to comply with reporting obligations or to appropriately address unjustified gender pay gaps may result in regulatory scrutiny, employee complaints, reputational risks and potential liability under equal pay and anti-discrimination rules.
Amendments on the rules on daily allowances and reimbursement of business travel expenses
Impact date: Main changes applicable from 1 October 2026
The Government amended the resolution on the payment of daily allowances and reimbursement of business travel expenses. The amendments remove the requirement to differentiate per day (per diem) rates based on "objective criteria" and introduces clear limits on per diem reductions. Collective agreements may reduce per diem rates to no less than 50% of the Government-established maximum, while employer policies may reduce rates only for business trips lasting 7 days or longer and to no less than 65% of the applicable rate. Employees must be notified in writing of any reduced rates before the commencement of the business trip. Additional changes were also introduced regarding the reimbursement of business travel expenses.
Employer implications/action needed Employers should review their business travel and per diem policies and update them to comply with the amended requirements.
Employer risk Incorrect application of the amended rules may lead to non-compliant per diem payments, employee disputes and potential tax or labour law liabilities.
Amendments to the Lithuanian Labour Code – updates across various employment law areas
Impact date: 1 November 2026
Amendments to the Lithuanian Labour Code have been adopted, introducing 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).
Employer risk Failure to comply may result in employee claims and/or administrative liability for the employer.
Amendments to the Lithuanian Labour Code – parental leave days
Impact date: 1 January 2027
Amendments to the Labour Code have been adopted to extend the entitlement to additional paid rest days for parents. Under the amendments, employees raising children will be entitled to such rest days until the child reaches the age of 14, instead of 12 as provided under the current regulation. As a result, the separate half-day entitlement on the first day of school for parents who did not qualify for the regular rest days has been removed, since the expanded age threshold now covers them.
Employer implications/action needed Update leave and working time policies, if necessary.
Employer risk Failure to grant the entitlement may result in breaches of employment law, employee complaints and potential disputes.
Proposed amendments to the Equal Opportunities Law
Impact date: Not yet adopted; if adopted, the amendments will enter into force on 1 January 2027
A revised draft of the new Equal Opportunities Law has been published; however, the legislation has not yet been adopted. The draft would replace the current law and significantly broaden the list of protected characteristics, including age, ethnic origin, language, origin, gender identity and expression, other gender-related characteristics, disability, skin color, political or other views, citizenship, race, religion or belief, sexual orientation, social status, nationality and faith. It would also introduce new forms of discrimination, including multiple discrimination, intersectional discrimination and discrimination by association. The proposed changes are intended, among other things, to align Lithuanian legislation with EU equality and anti-discrimination initiatives, including Directives (EU) 2024/1385 and (EU) 2024/1500.
Employer implications/action needed Update equal‑opportunities policies to reflect expanded grounds/definitions; ensure equal selection criteria, working conditions, and equal pay for equal/equivalent work; prevent harassment/sexual harassment; provide reasonable accommodation for employees with disabilities; protect against discrimination related to pregnancy, maternity, paternity, and parental leave; and implement anti‑retaliation measures for reporters.
Employer risk Non‑compliance constitutes an equal‑opportunities violation and may result in administrative offence proceedings by the Equal Opportunities Ombudsperson.
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