On 7 June 2026, amendments to the Labour Code will take effect in Lithuania to implement Directive (EU) 2023/970 of the European Parliament and of the Council. The Directive’s objective is to ensure equal salary for equal work or work of equal value, increase transparency in salary systems, raise public awareness of equal pay, and provide more effective tools for individuals who have experienced discrimination to defend their rights and obtain compensation.

Although the Directive is aimed at ensuring equal salary between men and women, the planned amendments will affect all employees and employers.

Key upcoming changes:

• Salary determination: All employers, regardless of the number of employees (unlike it is now), will be required to establish a salary system compliant with legal requirements, which will apply to all employees. Among other things, the salary system will need to set out employee categories (groups) by position, determined based on objective and gender-neutral criteria (qualifications, responsibility, effort, skills, competencies).
• Rules on salary increases: The salary system or the relevant internal rules will have to clearly define the procedure and criteria for increasing salaries. This obligation is not expected to apply to employers with fewer than 50 employees.
• Access to information: At an employee’s request, the employer will be obliged to provide information on their salary and the average salary of employees in the same category, broken down by gender. Employers will also be required, at least once a year, to inform employees of this right and explain how to exercise it. Employers may also provide such information on their own initiative, without waiting for employee requests.
• Restrictions on salary confidentiality: Salary will no longer be considered confidential information. Agreements prohibiting employees from disclosing their salaries will be banned.
• Changes in recruitment processes: Employers will not be allowed to ask candidates during job interviews about the salary they receive or have received in their current or previous employment.
• Reporting obligations: Employers with 100 or more employees will be required to publish annual reports on gender pay gaps. These reports will need to cover not only base salaries but also all additional payments – allowances, variable pay components, bonuses, benefits, and other forms of remuneration.

Although the Directive’s entry into force in Lithuania (through amendments to the Labour Code and other relevant legislation) is still some time away, reviewing and updating internal rules and processes for employers may take several months. Therefore, employers are advised to start preparing for the changes now by reviewing and, where necessary, updating (or creating):

• salary (remuneration) systems;
• lists of confidential information and confidentiality agreements with employees;
• recruitment systems and processes.

Response Legal

Associate

Paulius Ivoškus