🇱🇹 Lithuania

Lithuania & the EU Pay Transparency Directive: A Significant Uplift for a Developing Framework

Introduction

Lithuania's approach to pay equity is grounded in its Labour Code (Darbo kodeksas) and the Law on Equal Opportunities (Lygių galimybių įstatymas), both of which prohibit pay discrimination. However, like many Central and Eastern European Member States, Lithuania lacks mandatory pay gap reporting, salary disclosure requirements, or structured enforcement mechanisms for pay equity.

Lithuania's unadjusted gender pay gap stands at approximately 13–14% (Eurostat), with structural drivers including significant occupational and sectoral segregation. The EU Pay Transparency Directive (Directive (EU) 2023/970) will require Lithuanian employers to implement systems and processes they have not previously needed.

The Office of the Equal Opportunities Ombudsperson (Lygių galimybių kontrolierius) currently oversees equality matters and is expected to take on an expanded enforcement role following transposition.

Lithuania's compliance journey under the Directive is one of meaningful infrastructure-building — employers will need to move from a passive prohibition model to an active measurement and disclosure framework, and the window to do so is narrow.

Lithuania's Current Pay Transparency Framework

Current Lithuanian obligations on pay equity are largely passive and reactive:

  • Darbo kodeksas: equal pay for equal work or work of equal value
  • Law on Equal Opportunities: prohibits pay discrimination on grounds of sex and other characteristics
  • No mandatory aggregate pay gap reporting or public disclosure obligation
  • No requirement to disclose salary in job advertisements
  • No structured employee right to individual pay comparison data
  • Limited proactive enforcement by the Equal Opportunities Ombudsperson
Area Current Lithuania Framework Under EU Pay Transparency Directive
Pay Gap Reporting No mandatory reporting obligation Phased mandatory reporting; annual for 250+ employees, every 3 years for 100–249
Employee Information Rights No formal right to request pay comparison data Right to individual pay level and average pay by gender for comparable workers
Salary in Job Adverts No obligation to disclose salary in adverts Salary range must be disclosed before first interview; salary history questions prohibited
5% Threshold Rule No formal automatic trigger mechanism ≥5% unexplained gap triggers mandatory joint pay assessment — entirely new obligation
Pay Criteria No obligation to document or disclose pay determination criteria Gender-neutral pay criteria must be documented and accessible to employees on request
Enforcement Equal Opportunities Ombudsperson oversight; limited proactive enforcement Structured enforcement, reversed burden of proof, proportionate penalties

The Directive represents a step-change for Lithuanian employers — from passive equal pay compliance to active, public, and individually-accessible pay gap disclosure.

Key Challenges for Lithuanian Employers

Challenge Description Impact Complexity
No Existing Infrastructure Pay gap measurement, job evaluation, and reporting systems must be built from the ground up for most employers Very High High
Sectoral Segregation Exposure Lithuania's pay gap is heavily driven by occupational segregation; category-level reporting will surface sector-specific gaps for the first time Very High High
Recruitment Process Change Salary disclosure in adverts and banning salary history questions represent entirely new practices for the vast majority of Lithuanian employers High Medium
Enforcement Body Readiness The Equal Opportunities Ombudsperson will need to develop new enforcement tools, reporting templates, and guidance to implement the Directive's requirements High Medium
Impact / Complexity: Very High High Medium

Transposition Timeline & Status

Lithuania's Ministry of Social Security and Labour (Socialinės apsaugos ir darbo ministerija) leads the transposition process. The Directive must be incorporated into Lithuanian law by 7 June 2026, likely through amendments to the Darbo kodeksas and the Law on Equal Opportunities.

Now → 2025

Government consultation; mapping of Directive requirements; amendment drafting

2025 – Q2 2026

Parliamentary review; Equal Opportunities Ombudsperson guidance development

June 2026

Transposition deadline; Directive obligations enforceable for in-scope employers

Practical Employer Action Checklist

Assess your employee headcount and threshold timeline

Identify when the phased reporting obligations first apply to your organisation and build your implementation plan around that date.

Conduct a gender pay gap baseline analysis

Calculate current gaps by category, understand the drivers, and identify areas requiring remediation before your first public report.

Build a job classification and pay band structure

Implement or document gender-neutral job evaluation — essential for category-level reporting and salary disclosure in recruitment.

Update recruitment practices now

Stop asking candidates about salary history and prepare to disclose salary ranges in all job adverts — this obligation applies to all employers regardless of size.

Monitor Ombudsperson guidance as it develops

Follow the Equal Opportunities Ombudsperson's development of enforcement tools, reporting templates, and compliance guidance.

"Lithuania's starting point is a clean slate — both a challenge and an opportunity. Employers that build robust pay governance now will be ahead of regulatory requirements and better positioned to attract talent in a competitive labour market."