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The implementation of the EU Pay Transparency Directive into Lithuanian law is one of the most significant recent developments in the labour market.
As of 7 June 2026, new requirements entered into force, changing how companies determine, communicate, and manage employee compensation.
These amendments to the Labour Code implement the EU Pay Transparency Directive (EU) 2023/970, whose objective is to ensure equal pay for equal work or work of equal value and to increase transparency in the labour market.
The pay transparency requirements introduce new rules into Lithuanian employment law that:
The goal of these changes is to ensure that pay differences are transparent, measurable, and objectively justified.
The implementation of the pay transparency requirements in Lithuania follows a phased approach.
Date
Phase
What Changes for Employers
What It Means for Employees
Date
2026-06-07
Phase
Entry into force of legal changes
What Changes for Employers
Employers must provide candidates with information about the proposed salary or salary range and may no longer ask about previous salary history
What It Means for Employees
More transparency regarding compensation before accepting a job offer
Date
2026-06-07 – 2026-12-31
Phase
Transitional period
What Changes for Employers
Employers develop or update remuneration systems, review job classifications, and establish compensation criteria
What It Means for Employees
Greater clarity regarding how salaries are determined
Date
By 2026-12-31
Phase
Remuneration system preparation
What Changes for Employers
Employers must prepare a documented remuneration system based on objective and gender-neutral criteria
What It Means for Employees
More transparent pay practices within organizations
Date
From 2027-01-01
Phase
Additional requirements take effect
What Changes for Employers
Submission of compensation data to SoDRA begins, and employees gain expanded rights to access pay information
What It Means for Employees
Employees can better assess whether their compensation is fair and justified
Date
From 2027 onward
Phase
Monitoring and oversight
What Changes for Employers
Pay differences will be monitored, increasing employer accountability
What It Means for Employees
Easier identification of potential discrimination cases
1. Pay Transparency During Recruitment
Employers must provide candidates with information about the proposed salary or salary range before a job interview or at an early stage of the recruitment process.
This helps candidates make informed decisions and promotes greater transparency in hiring.
2. Ban on Asking About Previous Salary
Employers may no longer ask candidates about their current or previous earnings.
This measure is intended to reduce long-term pay inequality and ensure that compensation is based on the value of the role rather than a candidate's salary history.
3. Mandatory Remuneration System
Companies will be required to:
These criteria should be based on factors such as qualifications, responsibility, job complexity, competencies, and other objective considerations.
4. Data Submission and Analysis
From 2027, employers must submit compensation-related data to SoDRA, Lithuania's State Social Insurance Fund Board.
Based on this information, SoDRA will calculate pay gap indicators and provide them to employers and relevant authorities.
As a result, organizations will need to ensure data quality and maintain a clear job classification structure.
1. Right to Access Pay Information
Employees will be able to:
Employers will be required to provide this information within the legally established timeframe.
This gives employees a better understanding of whether their pay is fair and whether any unjustified pay differences exist.
2. Greater Transparency During Job Searches
Job seekers will:
3. Stronger Protection Against Discrimination
If an employee suspects discrimination:
Practical Example
Before
Now
All of these criteria must be clearly defined, objective, and properly documented.
The implementation of the EU Pay Transparency Directive in Lithuania is changing how organizations determine and communicate pay:
This represents one of the most important steps toward a more transparent and modern labour market in Lithuania.