European Union implements pay transparency measures to address wage gaps

New labor law changes in Lithuania, driven by EU Directive 2023/970, aim to increase pay transparency and reduce gender inequality. In Lithuania, women earn an average of 8.5 percent less than men, while the EU-wide pension gap between genders reaches 24.5 percent.

Effective as of June 2026, these legislative updates prohibit employers from asking job candidates about their previous salary history. This measure is intended to prevent the inheritance of lower wages resulting from past discrimination. Additionally, confidentiality clauses that prevented employees from discussing their pay with colleagues have been removed, allowing workers to compare earnings to ensure equal pay for work of equal value.

The reforms also expand employer liability. Previously, penalties for delayed wage payments were limited to a six-month period, but this limit has been removed, specifically including cases involving violations of equal pay principles.