Pay Transparency Revolution: Lithuania Prepares for 2026 Deadline
Lithuania is preparing significant amendments to its Labour Code in order to implement the EU Pay Transparency Directive. The Directive is designed to strengthen the principle of equal pay for women and men, increase transparency in wage-setting practices, and provide effective remedies for employees who experience pay discrimination. All Member States must transpose the Directive into national law by 7 June 2026, and Lithuania has already taken concrete legislative steps in this direction.
On 20 January 2026, the Ministry of Social Security and Labour of the Republic of Lithuania registered draft amendments to multiple articles of the Labour Code. These amendments introduce new obligations for employers and expand employees’ rights to access pay-related information.
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Strengthening the Principle of Equal Pay and Mandatory Remuneration Systems
At the heart of the Directive is the requirement that women and men must receive equal pay for the same work or work of equal value. Lithuanian law will reinforce this principle by requiring employers to classify positions according to objective and gender-neutral criteria. Jobs that are considered of equal value must be placed in the same job group and paid accordingly. Any unjustified pay differences between men and women will need to be corrected within a specified timeframe.
All employers, regardless of size, will be required to establish a formal remuneration system that is accessible to employees. Before introducing or amending such a system, employers must follow the information and consultation procedures set out in the Labour Code.
The remuneration system must clearly define job groups based on objective criteria and specify wage levels or ranges, additional payments such as bonuses and allowances, wage indexation mechanisms, and the criteria and procedures for wage increases. Employers with fewer than 50 employees will be exempt from including formal wage increase criteria in their remuneration systems.
Transparency in Recruitment
The proposed amendments introduce new transparency rules in pre-contractual employment relationships. Employers will no longer be allowed to request information about a candidate’s current or previous salary. This measure aims to prevent historical pay inequalities from being perpetuated.
In addition, employers will be required to provide job applicants with information about the applicable provisions of any collective agreement before the employment contract is signed. This ensures that salary negotiations are conducted in a transparent and informed manner.
Employees’ Right to Pay Information
The amendments significantly expand employees’ rights to information. Employees will be entitled to request and receive written information about their own annual and hourly pay, including any remuneration in kind. They will also have the right to receive information about average pay levels, broken down by gender, for employees performing the same work or work of equal value within the same job group.
Employers may require employees to use this information solely for the purpose of exercising their right to equal pay. However, salary information cannot be treated as confidential if an employee discloses it to assert their right to equal pay.
Employers will also be obliged to inform employees annually about their right to request pay information and explain how this right can be exercised.
Enhanced Role of Employee Representatives
Employee representatives will gain broader rights to receive wage-related information. Employers will be required to provide regular reports on the gender pay gap and ensure that representatives have access to relevant data needed to assess compliance with equal pay obligations.
Reporting Obligations and Gender Pay Gap Disclosure
Under the proposed changes, employers must submit monthly data on wages, working hours, and job categories to the State Social Insurance Fund Board via the Electronic Insurer Service System.
The Board will publish monthly information on average hourly wages of male and female employees for employers with at least eight employees, including at least three women and three men. In addition, information on the gender pay gap will be publicly disclosed:
- Every three years for employers with 100 to 249 insured persons
- Annually for employers with 250 or more insured persons
Employers with 100 or more employees who are notified of an unjustified gender pay gap will be required to eliminate the disparity within six months of receiving the information.
Practical Steps for Employers
In light of the upcoming changes, employers should begin preparing for compliance. Recommended steps by ECOVIS ProventusLaw include:
- Reviewing recruitment processes to ensure they meet new transparency requirements
- Assessing the existing gender pay gap within the organisation
- Establishing or updating a remuneration system in line with the new legal standards
- Preparing clear internal communication regarding wage-setting procedures
- Reviewing confidentiality policies to ensure they do not conflict with transparency obligations
The implementation of the EU Pay Transparency Directive represents a significant shift in Lithuanian labour law. By introducing structured remuneration systems, enhanced reporting requirements, and expanded employee rights, the reforms aim to promote fairness, accountability, and equality in the labour market. Employers who begin preparing early will be better positioned to meet the new obligations and foster a more transparent and equitable workplace environment.
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