EU Pay Transparency Directive: What It Means for Lithuania

The EU Pay Transparency Directive (Directive (EU) 2023/970) is designed to strengthen pay equality and reduce gender-based pay discrimination across the European Union.

In Lithuania, the directive is driving changes around recruitment transparency, employee rights to pay information, and more structured gender pay gap reporting and remediation. Lithuania already has elements of pay transparency in place, and national legislation is expected to align fully with the directive by the EU deadline.

This guide explains what the directive means for employers, employees, and payroll teams in Lithuania and how Payslip can help support compliance.

1. Objectives of the EU Pay Transparency Directive

The directive aims to close the gender pay gap and ensure fair pay practices by:

• Increasing transparency in recruitment and pay structures

• Giving employees the right to access pay information

• Requiring employers to report gender pay gaps

• Strengthening enforcement through penalties and compensation rights

• Prohibiting pay secrecy practices that restrict salary discussions

Keywords included: EU Pay Transparency Lithuania, pay transparency law Lithuania, gender pay gap reporting Lithuania

2. Lithuania Implementation Timeline

EU transposition deadline: 7 June 2026

Expected Lithuanian implementation: By June 2026

Scope: Salary transparency in hiring, employee pay information rights, and gender pay gap reporting requirements

Lithuanian authorities are expected to issue further national guidance as the deadline approaches.

3. Who the Directive Applies To in Lithuania

Workers

The directive applies to:

• Employees

• Workers in employment-like relationships

• Both public and private sector staff

Employers

All Lithuanian employers will need to comply with pay transparency rules.

Reporting Thresholds

Gender pay gap reporting will apply to employers with:

• 100+ employees (with phased reporting obligations depending on company size)

Standard directive reporting schedule:

• 250+ employees: first reporting by June 2027, then annually

• 150 to 249 employees: first reporting by June 2027, then every three years

• 100 to 149 employees: first reporting by June 2031, then every three years

Lithuania may introduce additional national requirements, but this reflects the baseline EU framework.

4. Employer Responsibilities in Lithuania

Recruitment Transparency

Employers must:

• Include salary ranges or starting pay levels in job postings or provide them early in the recruitment process

• Avoid asking candidates about salary history

• Ensure pay offers are based on objective, gender-neutral criteria

Pay-Setting and Career Progression

Employers must ensure:

• Objective, gender-neutral pay criteria

• Transparent pay progression frameworks

• Clearly defined job categories or job evaluation systems

• Documented pay-setting processes

Employee Right to Pay Information

Employees in Lithuania will have the right to request:

• Their individual pay level

• Average pay levels for comparable roles or job categories, broken down by gender

Employers will be required to respond within the statutory timeframe once defined under Lithuanian law.

Gender Pay Gap Reporting and Remediation

Employers with 100+ employees must:

• Report gender pay gap data according to the required schedule

• Explain and address unjustified pay differences

• Conduct joint pay assessments where pay gaps exceed defined thresholds

This will require structured internal analysis and documented remediation plans where necessary.

5. Benefits for Employees in Lithuania

The directive strengthens employee protections by providing:

• Greater transparency before applying for roles

• Access to comparable pay information

• Stronger safeguards against discrimination

• Increased accountability for employers

• Improved workplace trust and fairness

6. Consequences for Non-Compliance

Failure to comply may result in:

• Compensation claims from employees

• Administrative penalties and enforcement actions

• Reputational risk

• Shifted burden of proof onto employers in pay discrimination cases

7. Payroll Implications in Lithuania

Payroll teams will play a critical role in ensuring compliance with the directive.

Key Data to Track

• Base salary

• Bonuses and variable pay

• Benefits and allowances

• Working hours and contract types

• Job role classifications

• Salary changes, promotions, and one-off payments

Processes to Support Compliance

Payroll will need to support:

• Employee pay information requests

• Accurate gender pay gap reporting datasets

• Job and pay comparisons across categories

• Consistent and auditable data outputs

Controls and Governance

Strong payroll controls will be essential, including:

• Monitoring salary changes and promotions

• Tracking one-off and variable payments

• Ensuring confidentiality and GDPR compliance

• Aligning payroll data with HR job architecture

8. How Payslip Can Help Lithuanian Payroll Teams

Payslip supports EU Pay Transparency compliance in Lithuania by:

• Centralizing payroll data across multiple systems and countries

• Delivering on-demand pay and salary insights

• Supporting gender pay gap reporting requirements

• Automating data preparation for employee pay information requests

• Integrating seamlessly with HR and finance systems

Payroll teams can reduce manual work, ensure consistency, and remain audit-ready across all countries.

9. Next Steps for Employers in Lithuania

To prepare for June 2026, Lithuanian employers should:

• Review pay structures and job evaluation frameworks

• Document gender-neutral pay-setting criteria

• Prepare for employee pay transparency requests

• Update recruitment practices to include salary ranges

• Assess readiness for gender pay gap reporting obligations

• Monitor Lithuanian legislative updates and build a compliance roadmap