This article examines how new regulations on per diem payments will reshape procurement practices in the transport sector.
Changes to per diem regulations
Starting in October, new regulations will restrict employers’ capacity to reduce per diem payments for employees sent on business trips. The Ministry of Social Security and Labour states that these changes aim to strengthen worker guarantees, particularly for truck drivers, who often rely on per diem payments as a significant portion of their income. Previously, employers could easily justify reductions in these payments, leading to numerous disputes. The updated rules require companies to inform employees in advance if they plan to lower per diem rates, thereby increasing transparency and accountability in the procurement process.
Impact on the transport sector
The transport sector, particularly truck drivers, has been significantly affected by per diem payment practices. According to the State Labour Inspectorate, disputes over reduced per diem payments account for 25 percent of all cases brought to the labour dispute commission, with many cases involving foreign workers. The new regulations aim to address this issue by establishing clearer guidelines for per diem payments. While some industry representatives, such as the National Association of Road Carriers ‘Linava’, welcome the changes, they express concerns about maintaining competitiveness in Europe, given the high base salaries that may accompany these payments.
Concerns from trade unions
Trade unions have raised concerns regarding the new regulations, particularly the stipulation that for trips lasting less than four hours, only 20 percent of the per diem rate will be paid for the first and last days. Dalia Jakutavičė, head of the Trade Union Confederation, highlights that while the new rules provide more clarity, they could also lead to confusion and inequity for workers. The lack of defined criteria under previous regulations allowed employers to creatively justify reductions in per diem payments, leading to absurd situations. The new rules aim to eliminate such ambiguity, but the effectiveness of these measures remains to be seen.
IN NUMBERS
As the new per diem regulations come into effect, businesses and public entities involved in procurement will need to adapt their practices to ensure compliance and support fair treatment of workers in the transport sector.
Reported from lrt.lt, 2026-09-03. The Tender Wire is published by Otnox.
