EU Pay Transparency Directive: what Lithuanian employers need to know

The EU Pay Transparency Directive (EU) 2023/970 is designed to close the gender pay gap and make pay structures more visible. EU member states must transpose it into national law by 7 June 2026. Lithuania will do the same, so employers should prepare now.

1. What will change

The directive introduces new rules in four main areas: job postings, employee rights, pay reporting, and gender pay gap remediation. Even employers that already pay fairly will need to document and communicate pay more clearly.

2. Pay ranges in job postings

Employers will be required to include the initial pay level or pay range in job postings before the interview stage. This applies to both external and internal vacancies.

What to prepare:

• Clear salary bands for each role and seniority level.
• A process to update job ads and recruitment templates before the rules take effect.
• Guidance for hiring managers so they do not negotiate outside the published range without a documented reason.

3. Employee right to pay information

Employees will have the right to request information about their individual pay level and the average pay levels for workers doing the same work or work of equal value, broken down by sex. Employers must provide this information within a defined timeframe.

This means job descriptions, grading structures, and pay decisions must be well documented. Informal or purely discretionary pay practices will become harder to defend.

4. Pay reporting for larger employers

The directive introduces mandatory reporting for companies with 100 or more employees, with lighter rules for those between 100 and 249 employees.

Reports must cover the pay gap between men and women, the median pay gap, and other indicators. If the gap exceeds 5%, employers must carry out a joint pay assessment with worker representatives and produce a remediation plan.

5. What to do now

1. Audit your current pay data: Check for unexplained pay gaps by role, seniority, and gender.
2. Document job evaluation criteria: Define what “work of equal value” means in your company.
3. Build salary bands: Create clear pay ranges for recruitment and internal mobility.
4. Review recruitment templates: Make sure job ads will meet the new pay transparency requirements.
5. Train managers: Ensure hiring managers understand the rules and the limits on pay negotiation.

Need help preparing for the EU Pay Transparency Directive?

We help employers review pay structures, document job grading, and prepare recruitment templates that comply with the new transparency requirements. You can start small and build up as the deadline approaches.