🖍️ As you know, on June 7, 2026, all European Union member states, including Lithuania, will enter into force EU Pay Transparency Directive. This legal document will significantly change the practices of companies - from the selection of candidates to the creation of a remuneration structure, paying particular attention to the issues of remuneration of men and women. This is not only a legal challenge, but also a unique opportunity to create a fairer and more transparent work environment. It is high time to take active work or continue the work already started in order to improve not only selection, but also other personnel management processes.

So why is this directive so important?

Although the principle of equal pay for equal work or work of equal value was enshrined in EU documents as early as 1957, in reality, gender inequality in the labor market remains evident:

  • The average gender pay gap in the EU is 15,7 %.
  • The gender employment gap is 11,6 %.
  • During the pandemic, women suffered more than men from job loss or increased health risks – especially in sectors where they are in the majority (e.g. trade, services, healthcare).

These facts show that the existing system is not always fair – and transparency becomes one of the most important steps to change it.

What changes await employers?

The new directive introduces several key principles that employers will be required to implement:

1. Employee rights to remuneration information

  • Employees will be able to freely share information about your salary.
  • It will be prohibited to restrict the disclosure of this information in employment contracts.
  • Employees will be able to contact your employer for information about your own or your colleagues' salaries – by position, job value or gender.

2. Definition of work of equal value

  • Remuneration structures will have to be based on objective, gender-neutral criteria: skills, responsibilities, working conditions, etc.
  • If it is set gender pay gap greater than 5% and it will not be objectively justified, the employer will have to carry out remuneration assessment together with employee representatives.

3. Transparency already at the selection stage

  • There will be candidates It is not permissible to ask about the salary you receive. 
  • Before employment, the employer will have to provide information about the proposed salary or its interval.

4. Annual reports for larger companies

  • Companies that have 100 or more employees, will have to publish information on the gender pay gap annually – including bonuses, variable parts, etc..

5. Shifting the burden of proof

  • If an employee makes a reasonable allegation of discrimination in the area of remuneration, the burden of proof to the contrary will fall on the employer.

Challenge or opportunity?

Although implementing these changes will require time and resources, it is also a strategic opportunityOrganizations that prepare early and clearly communicate their integrity policies:

  • It can strengthen the employer's image.
  • Can increase the chances of attracting more motivated employees.
  • Can reduce staff turnover.

🎯 Is your company ready for change?
Now is a great time to start an internal dialogue, assess the current situation, and plan steps for change.

This blog post summarizes the knowledge and research information of lawyers and other experts. Read more here: