Pay Transparency Requirements 2026: What Employers and Employees Need to Know

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:

• require employers to determine pay using objective and gender-neutral criteria;
• give employees greater access to information about remuneration;
• strengthen protection against pay discrimination;
• require employers to justify pay differences based on objective criteria.

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.

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:

• classify positions into job groups;
• establish objective and gender-neutral compensation criteria;
• maintain a documented remuneration system.

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:

• obtain information about their own pay (monthly and hourly);
• receive information about the average pay within their job group, broken down by gender;
• assess whether their remuneration is determined according to objective criteria.

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:

• receive compensation information earlier in the recruitment process;
• be able to make more informed decisions when evaluating job opportunities.

3. Stronger Protection Against Discrimination

If an employee suspects discrimination:

• the employer will need to justify pay differences using objective criteria;
• the employee will find it easier to defend their rights.

Practical Example

Before

• Salary offered "upon agreement";
• Unclear compensation criteria.

Now

• Position: Sales Manager
• Salary: €1,800–€2,500
• Criteria: Experience, performance, responsibilities, competencies

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:

• employers must justify compensation using objective criteria;
• employees gain greater transparency and stronger rights;
• companies are moving toward more data-driven compensation management.

This represents one of the most important steps toward a more transparent and modern labour market in Lithuania.