Lithuania Unveils New Salary Transparency Laws for Equal Pay
The Lithuanian Parliament (Seimas) has approved significant amendments to the national Labour Code, introducing radical transparency measures designed to eliminate gender-based pay gaps and ensure equal compensation for work of equal value. The changes, which transpose European Union Directive 2023/970, will grant employees the legal right to access detailed information regarding how their salaries compare to their colleagues.
The legislation passed with a decisive majority, with 80 members of the Seimas voting in favour, three against, and 19 abstentions. The new rules are expected to be fully integrated into Lithuanian law by June, marking a shift in the power dynamic between employers and staff regarding financial disclosure.
New Rights to Access Comparative Pay Data
Under the amended Labour Code, employees will no longer be left in the dark about whether they are being paid fairly relative to their peers. Workers now have the right to request written data from their employer regarding several key performance and pay indicators.
Specifically, an employee can demand to see their own annual salary, their average monthly hourly rate, and their average annual hourly rate. Crucially, they can also request the average pay levels of colleagues within the same job category, broken down by gender. This includes the average annual salary and hourly rates for both men and women performing the same or equivalent roles.
To facilitate this, companies are now required to group positions based on four objective criteria: skills, effort, responsibility, and working conditions. This standardisation is intended to prevent employers from using different job titles to justify pay discrepancies for roles that require the same level of expertise and dedication.
Enforcement and Compensation for Discrimination
The amendments do more than just provide information; they establish a robust framework for legal recourse. If a labour dispute body—such as the Labour Dispute Commission or the State Labour Inspectorate—finds that an employer has violated the duty of equal pay, the affected employee is entitled to comprehensive compensation.
This compensation is not limited to back-pay for unpaid wages. It also covers:
* Full recovery of unpaid salary or payments in kind.
* Compensation for both material and non-material (moral) damages.
* Redress for damages resulting from discrimination on various grounds.
* Compensation for lost professional opportunities caused by the violation.
By including non-material damages, the law acknowledges the psychological and career impact of being systematically underpaid compared to one’s peers.
Addressing the 9.4% Gender Pay Gap
During the session, Minister of Social Security and Labour Jūratė Zailskienė highlighted that while Lithuania has made strides in employment equality, the financial divide remains persistent. In 2024, the gender pay gap in Lithuania stood at approximately 9.4%.
“The gap is narrowing slightly, but not as significantly as we would like,” Zailskienė noted. “While there is almost no difference between the employment opportunities for men and women in Lithuania, the wage gap still exists.”
The Minister emphasised that these changes are a direct response to both the EU Transparency Directive and the current Government’s programme to ensure that the “equal pay for equal work” principle is more than just a theoretical concept.
Implementation Timeline and Voting Results
| Category | Detail |
|---|---|
| Implementation Deadline | June 2024 |
| Seimas Vote (In Favour) | 80 |
| Seimas Vote (Against) | 3 |
| Abstentions | 19 |
| Primary Oversight Bodies | Labour Inspectorate, Labour Dispute Commissions, Trade Unions |
For workers who suspect they are being underpaid, the process of verification will now move through official channels. If an employer refuses to provide the data or if the data reveals a discrepancy, employees can seek assistance through trade unions or state institutions to mediate or litigate the dispute. This move positions Lithuania as a proactive participant in the broader European trend toward total corporate transparency.
Source: ELTA
