Changes in legislation regulating reduction of daily allowance

As of 1 July 2022 Government Resolution No. 526 “On the Payment of Daily Allowance and Other Business Trip Expenses”, which sets the maximum amounts of daily allowance and the possibility to reduce it, shall change.

 

The current legislation stipulates that the employee might be paid a lower daily allowance than set in a Government Resolution if this is agreed upon in a collective agreement or employment contract. From 1 July 2022, this regulation is changed and the possibility to reduce the employee’s daily allowance may only be set in a collective agreement or local act (rules), meaning that in order to further have the possibility to reduce employees‘ daily allowances, the employer shall adopt a local act (rules) which will have to describe specific and objective criteria for setting lower daily allowances.

 

There will be no possibility to agree with the employee on a reduction of the daily allowance in the employee’s employment contract.

 

Before determining the amounts of daily allowance, information and consultation procedures must be completed in accordance with the procedure established by the Labor Code of the Republic of Lithuania. Also, if the amount of daily allowance is set by local act (rules), employees must be informed of it in writing.

 

The above-mentioned amendments have been adopted in order to ensure equality between employees when the daily allowance is reduced, as well as to prevent unfair practices from employers.

 

If you have any further questions or require assistance with the preparation of the documents, please do not hesitate to contact Leinonen Legal department at lithuania.legal@leinonen.eu.

 

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