Amendments of daily allowances from 01.07.2018

The most important changes are as follow:
-       some countries have been excluded from the list of maximum daily allowances (hereinafter - the List), as example: Paraguay, Jamaica, Republic of the Congo, Honduras;
-       there is a new concept - "other states" in the List. This concept applies when the List does not indicate the country to which employee is posted (the daily allowances rate in other states is 31 Eur per a day);
-       the following cities, as Moscow, St. Petersburg, Riga, Astana and New York are also removed from the List. In mentioned cities daily allowances rates will be applicable the same as for all country, i.e. Russia, Latvia, Kazakhstan and the USA.

Daily allowances in Lithuania
From 1 July, 2018 the rate of daily allowances in Lithuania shall increase from 5.70 Eur per a day to 15 Eur per a day. If the business trip takes less than one day in Lithuania, daily allowances could not be paid according to Lithuanian Labour Code (Article 107 Paragraph 4).

Is it possible to pay lower daily allowance?
The Government of Lithuania has introduced a new rule - starting from 1 July, 2018, the daily allowances can be reduced only up to 50 % if it is set in the Employment contract or Collective agreement, it means that the employer cannot reduce daily allowances rate more than 50%.

If the employer does not pay daily allowances or reduce daily allowances more than 50%, the employee will have the opportunity to claim them and the administrative penalty will be imposed to the employer.

07.06.18