Lithuania to End Per Diem Payments for Single-Day Business Trips

Starting October 1, Lithuania will revise its regulations concerning per diem payments for business trips, a move that will notably eliminate compensation for single-day excursions within the country. This significant alteration aims to clarify and standardize the application of per diems, ensuring they serve their intended purpose of covering additional costs incurred during travel.

The rationale behind this change, as explained by the regulation's drafters, is that one-day trips within Lithuania typically do not generate substantial extra expenses for meals or accommodation. Consequently, providing per diems in such instances is deemed inconsistent with their compensatory function. The maximum per diem rate for domestic trips exceeding one day will remain at 28 euros, maintaining a standard for longer assignments.

However, the new rules do not mean employees will bear all costs for short trips. The Labor Code mandates that employers must still reimburse employees for actual, reasonable expenses incurred during business travel. This includes costs for transportation, parking, tolls, and event registration fees. Employees will need to retain receipts and documentation to justify these expenses, as per company policy. This distinction between per diems and the reimbursement of actual expenses is crucial for understanding the revised framework.