We kindly inform you that the Lithuanian legislator is seeking to reduce the possible unfair practice by paying part of the salary to employees as compensation for work outdoors/in a movable nature/related to travel, thus from 1 June 2023 the mentioned compensation mechanism is being abolished.
Until the above-mentioned date, a transitional period is established – currently, compensation for work in outdoors/movable nature/related to travel remains unchanged – up to 50% of the basic (tariff) salary and shall be paid in the event that the employee is not paid for business trip expenses.
From 1 November 2022, the amount of the aforementioned compensation is reduced to 30% of the basic (tariff) salary. And from 1 June 2023, the ability to pay compensation will be voided in full.
After the cancellation of the mentioned compensation, the employees will have to be paid their usual salaries and be compensated for the actual expenses incurred while traveling/working in outside or movable nature conditions. Depending on the duration and direction of the trip, a daily allowance will also have to be paid.
In order to prepare for the upcoming changes, we recommend reviewing employment contracts with employees, and internal procedures and identifying pending adjustments.
Should you have any questions, please do not hesitate to reach out to us at lithuania.legal@leinonen.eu.
