{"id":2999,"date":"2026-10-07T22:19:51","date_gmt":"2026-10-07T19:19:51","guid":{"rendered":"https:\/\/linden.lt\/tinklarastis\/unjustified-pay-gaps-how-to-fix-lithuania\/"},"modified":"2026-10-07T22:19:51","modified_gmt":"2026-10-07T19:19:51","slug":"unjustified-pay-gaps-how-to-fix-lithuania","status":"publish","type":"irasas","link":"https:\/\/linden.lt\/en\/blog\/unjustified-pay-gaps-how-to-fix-lithuania\/","title":{"rendered":"Job evaluation found unjustified pay gaps: how to fix them"},"template":"","kategorija":[],"class_list":["post-2999","irasas","type-irasas","status-publish","hentry"],"acf":{"visi_puslapiai_cta_statusas":false,"visi_puslapiai_cta_antraste":"","visi_puslapiai_cta_formos_id":"","visi_puslapiai_cta_papildomas_tekstas":"","visi_puslapiai_cta_nuotrauka":null,"tinklarastis_1_autorius":null,"tinklarastis_1_iraso_tipas":false,"dinamiski_blokai":[{"acf_fc_layout":"tekstas","tekstas":"<p>Once jobs are evaluated and grouped, some employees' pay turns out not to match the new ranges. Some earn less than colleagues doing work of equal value; others earn more than the group maximum. Base pay cannot be cut without the employee's written consent. So unjustified gaps are fixed by raising the lower pay, within a reasonable time, for example six months (VDI's recommendation). Below: how to plan it, write it down and explain it to staff. For an overview of all the duties, see <a href=\"https:\/\/linden.lt\/en\/blog\/pay-transparency-directive-lithuania-employer-steps-and-deadlines\/\">\"Pay transparency in Lithuania: what employers must do, and by when\"<\/a>.<\/p>\r\n<h2>What the law and VDI say<\/h2>\r\n<p><strong>The law:<\/strong> essential terms of the employment contract may be changed on the employer's initiative only with the employee's written consent (DK Article 45(1)). Pay is one of them (DK Article 34(1)). Under Article 45(3), if the employee does not apply to the labour-dispute body within three months from when they learned, or should have learned, of the breach, they are deemed to have agreed to work on the changed terms. <strong>In our view,<\/strong> this is not a way to cut pay: a cut without written consent breaches Article 45(1). Pay may not be lower than set by the pay system approved at the workplace (DK Article 140(2)). Refusing to work for reduced pay cannot be a lawful reason to terminate the contract (DK Article 45(2)).<\/p>\r\n<p>The <a href=\"https:\/\/atlygis.linden.lt\/en\/\">pay system<\/a> must be approved or reviewed by 31 December 2026 (Article 23(4) of Law No. XV-969). Before approving or changing it, the information and consultation procedures must be carried out (DK Article 140(3)).<\/p>\r\n<p><strong>VDI guidance (recommendations, not law):<\/strong><\/p>\r\n<ul><li>the system applies to all employees, not only new hires (VDI FAQ, question 3.6);<\/li><li>unjustified gaps must be fixed within a reasonable period, for example 6 months, usually by raising the pay of those who are unjustifiably underpaid (VDI FAQ, question 3.6);<\/li><li>length of service justifies a place in the range, but a disproportionate gap must be closed by raising the lower pay (VDI FAQ, question 7.7);<\/li><li>pay is changed only with the employee's written consent, while the system itself may be changed without it, after consultation (VDI FAQ, question 3.13).<\/li><\/ul>\r\n<h2>Why not wait<\/h2>\r\n<p>Once the employee points to facts from which discrimination may be presumed, the employer must prove there was none (DK Article 26(5)). If a breach is found, all unpaid pay and damages are awarded (DK Article 219(2)). If you have done the evaluation, see the gap and do nothing, that will be the hardest point to explain in a dispute. An approved correction plan with dates shows the employer acts in good faith. But if a breach of equal pay is found, the plan does not remove the employee's right to the full unpaid difference, including for the plan period, subject to limitation rules (DK Article 219(1) and (2)). <strong>Our recommendation:<\/strong> close gaps linked to sex or another protected ground as fast as you can, without waiting for the six months to run out.<\/p>\r\n<h2>Four situations and what to do<\/h2>\r\n<p>| Situation | What to do | Deadline | |---|---|---| | Pay below the group minimum | Raise at least to the minimum | From the date the system takes effect (DK Article 140(2)) | | Pay inside the range but unjustifiably below colleagues | Raise to the place the system's criteria support | Within 6 months, in steps; gaps linked to sex as fast as possible | | Pay inside the range, difference justified by criteria | Write the reason in the personnel file | At once | | Pay above the group maximum | Do not cut; put a rule for such cases into the system and write the reason | Review yearly |<\/p>\r\n<p><strong>Criteria for placement in the range.<\/strong> VDI says pay inside the range is set by objective criteria defined in advance (VDI FAQ, question 3.12). For example: experience in the job, competences, results, complexity of tasks. Write them into the system before you use them.<\/p>\r\n<p><strong>Our recommendation for pay above the maximum.<\/strong> Do not cut the pay of an employee above the group maximum. VDI (question 3.11) speaks of exceptions for exceptional competences, but states the principle: cases of pay above the group maximum, and the rules for such pay, must be clearly set in the system. <strong>In our view,<\/strong> the same applies to pay that is above the maximum for historical reasons. So write a rule into the system: whom it covers, for what reason, that increases do not apply until the range \"catches up\", and whether indexation applies. The rule is approved with the system, after the information and consultation procedure (DK Article 140(3)). The manager's decision only implements it. Write down the reason, for example earlier duties or exceptional competences. If there is no reason, deal with the gap by raising colleagues' pay, not by cutting one person's.<\/p>\r\n<h2>Examples<\/h2>\r\n<p><strong>A 12-person company.<\/strong> Group 2 has three administrators, range 85\u2013115% of the group midpoint. Their pay: 80%, 96% and 120%. The first is below the minimum: raised to 85% from the date the system takes effect, and to 96% within 6 months, because his experience and results equal the second's. The third is above the maximum because of earlier deputy-manager duties. His pay is not cut; the system contains a rule for such cases (no increases until the range catches up) and the reason is recorded.<\/p>\r\n<p><strong>A 45-person company.<\/strong> The evaluation showed that in group 4 women earn on average 9% less than men, and the criteria explain only 3%. The company approves a plan: the remaining unjustified gap (6 percentage points of the men's average) is closed in two steps, for each woman according to her target place in the range (3 percentage points per step on average), from 1 January 2027 and from 1 July 2027. If a breach were found, the employees would be awarded the full unpaid difference, including for the plan period (DK Article 219(1) and (2)), so if the budget allows, closing the gap in one step is safer. The budget is calculated in advance, and each raise is formalised by a pay agreement.<\/p>\r\n<h2>How to plan the budget<\/h2>\r\n<ol><li>For each employee, calculate the gap between current pay and the target place in the range.<\/li><li>Add up the gaps and add employer taxes.<\/li><li>Split into two or three steps over 6 months. Raise those below the minimum first.<\/li><li>If you plan a yearly pay review, use it first for corrections rather than an equal raise for all.<\/li><\/ol>\r\n<h2>How to tell staff<\/h2>\r\n<p>Staff do not need to see other people's pay. It is enough to explain the principle and the date. The safest way to formalise a raise is a written amendment to the employment contract.<\/p>\r\n<p>&gt; <strong>Sample wording: decision on the pay alignment plan<\/strong> &gt; In implementing the pay system approved on [date] 2026, I decide: &gt; 1. To raise the base pay of employees whose base pay is below the minimum of their job group to the group minimum from [date]. &gt; 2. To raise, in two steps from [date] and [date] as set out in the annex, the pay of employees whose place in the group range is not justified by the criteria in point 4 of the system. &gt; 3. Not to change the pay of employees whose base pay exceeds the group maximum; the rule in point [number] of the system on pay above the group maximum applies to them. &gt; 4. To review implementation of the plan by [date] and record the results. &gt; Managing director [name, signature]<\/p>\r\n<p>Keep the annex with names and amounts separately, not public.<\/p>\r\n<h2>Mistakes to avoid<\/h2>\r\n<ul><li>Cutting the pay of an employee above the maximum without his consent.<\/li><li>Applying the new ranges only to new hires.<\/li><li>\"Fixing\" the gap with a one-off bonus while base pay stays the same.<\/li><li>A plan made orally, without dates and without a decision of the manager.<\/li><li>Telling staff \"the system does not allow it\" without explaining the criteria.<\/li><\/ul>\r\n<h2>What to do if...<\/h2>\r\n<p><strong>...the budget does not allow fixing everything within six months?<\/strong> Fix whatever is below the minimum at once. For the rest, approve a stepped plan with dates and write down why it is longer. VDI gives 6 months as an example, not a statutory deadline. The longer the plan, the higher the dispute risk.<\/p>\r\n<p><strong>...an employee refuses to sign the new contract wording?<\/strong> A written amendment is the safest form, but pay the raise from the set date even if the employee does not sign: hand over an order and keep proof of delivery. Pay below the amount set in the system is not allowed (DK Article 140(2)). If the raise goes beyond what the system requires, <strong>Our recommendation:<\/strong> still seek a written agreement. Do not tie the raise to other changes that are unfavourable to the employee. The system still applies to him, because changing it does not need the employee's consent (VDI FAQ, question 3.13).<\/p>\r\n<p><strong>...someone earns far above the maximum?<\/strong> Check whether the job was evaluated correctly. He may actually do the work of a higher group; then update the job description and move him. If not, keep the pay, apply the system's rule on pay above the maximum and write down the reason.<\/p>\r\n<h2>Checklist for this week<\/h2>\r\n<ol><li>Put all employees in a table: group, range, current pay, place in the range as a percentage.<\/li><li>Mark who is below the minimum, who is above the maximum and where the gap is not justified by criteria.<\/li><li>Calculate the correction budget and the steps.<\/li><li>Prepare the manager's decision and the pay amendment agreements.<\/li><li>Write the reasons for justified differences in the personnel files.<\/li><\/ol>\r\n<h2>Related articles<\/h2>\r\n<ul><li><a href=\"https:\/\/linden.lt\/en\/blog\/paying-new-hire-more-than-existing-employee-lithuania\/\">Can you pay a new hire more than a long-serving employee?<\/a><\/li><li><a href=\"https:\/\/linden.lt\/en\/blog\/job-evaluation-and-grouping-for-pay-system-lithuania\/\">Job evaluation and grouping for a pay system: a practical guide<\/a><\/li><li><a href=\"https:\/\/linden.lt\/en\/blog\/employee-demands-equal-pay-lithuania-what-employer-should-do\/\">An employee demands equal pay: what the employer should do<\/a><\/li><li><a href=\"https:\/\/linden.lt\/en\/blog\/late-or-reduced-pay-lithuania-employer-rules\/\">Can an employer pay late or cut pay in Lithuania, and what follows?<\/a><\/li><li><a href=\"https:\/\/linden.lt\/en\/blog\/pay-transparency-directive-lithuania-employer-steps-and-deadlines\/\">Pay transparency in Lithuania: what employers must do, and by when<\/a><\/li><\/ul>\r\n<h2>How to start<\/h2>\r\n<p>Send us the job evaluation results and an anonymised pay table. We will prepare the correction plan, the manager's decision and the pay amendment forms.<\/p>\r\n<p>Linden's full solution, from the pay system to informing employees, is at <a href=\"https:\/\/atlygis.linden.lt\/en\/\">atlygis.linden.lt<\/a>. Check which requirements apply to you: <a href=\"https:\/\/atlygis.linden.lt\/en\/self-check\/\">atlygis.linden.lt\/en\/self-check<\/a>.<\/p>\r\n<p>Phone +370 5 212 1506, email info@linden.lt<\/p>\r\n<p>More about this service: <a href=\"https:\/\/linden.lt\/en\/services\/labour-law\/drafting-labour-law-documents\/\">drafting labour law documents<\/a>.<\/p>"}]},"_links":{"self":[{"href":"https:\/\/linden.lt\/en\/wp-json\/wp\/v2\/irasas\/2999","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/linden.lt\/en\/wp-json\/wp\/v2\/irasas"}],"about":[{"href":"https:\/\/linden.lt\/en\/wp-json\/wp\/v2\/types\/irasas"}],"version-history":[{"count":0,"href":"https:\/\/linden.lt\/en\/wp-json\/wp\/v2\/irasas\/2999\/revisions"}],"wp:attachment":[{"href":"https:\/\/linden.lt\/en\/wp-json\/wp\/v2\/media?parent=2999"}],"wp:term":[{"taxonomy":"kategorija","embeddable":true,"href":"https:\/\/linden.lt\/en\/wp-json\/wp\/v2\/kategorija?post=2999"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}