The social insurance system is based on the pay-as-you-go principle. The employer’s and employee's contributions are calculated as a percentage of the salary paid to the employee.
Persons employed under employment contracts are covered by State mandatory social insurance. Wages and salaries are generally paid into the employee's bank account. Payslipsare not obligatory.
Sickness insurance - Beneficiaries and conditions for entitlement
Individuals covered by the sickness and maternity social insurance are entitled to receive sickness benefit. The sickness benefit for the first 2 calendar days of sickness overlapping with the work schedule of an employee (except for the benefit for nursing a family member) is covered by the employer. The sickness benefit covered by the employer may not be lower than 80% and higher than 100% of the average salary. From the third day sickness benefit equal to 80% of the reimbursed salary and is paid from the State Social Insurance Fund Budget.
State social insurance fund board of the Republic of Lithuania under the Ministry of nSocial Security and Labour www.sodra.lt
Ministry of Social Security and Labour of Republic of Lithuania www.socmin.lrv.lt
Maternity insurance - Beneficiaries and conditions for entitlement
Women covered by sickness and maternity social insurance are entitled to maternity benefit for the period of pregnancy and birth if, prior to the first day of maternity leave, they contributed to sickness and maternity social insurance for at least three of the preceding 12 months or six of the preceding 24 months or if they were granted maternity leave. A person’s sickness and maternity social insurance record consists of: periods during which compulsory State social insurance contributions were paid or should have been paid for sickness and maternity social insurance; time when sickness and maternity benefit was received; time when sickness benefit for accidents at work or occupational illnesses was received; time when unemployment benefit was received.
Women who give birth after 28 weeks of pregnancy and later receive benefits for 70 calendar days up to the pregnancy and 56 calendar days after the pregnancy, or 70 calendar days after the pregnancy, if the birth entailed complications or more than one child was born.
By law, a maternity leave certificate must have been issued before maternity benefit can be received. The second half of the certificate must be completed by the employer and submitted to the local benefits office.
One of the parents, step-parents or guardians is entitled to receive maternity benefit if:
- they are contributing to sickness and maternity social insurance;
they have been granted leave according to established rules to care for a child until it is one year old;
- over the 24 months preceding the first day of childcare leave, they have contributed to sickness and maternity social insurance for a minimum of seven months.
Maternity benefit is paid during childcare leave until the child’s first birthday, but not before the end of maternity leave. During childcare leave up to a child’s first birthday, monthly maternity or paternity benefit is based on the average number of working days per month in that year. Benefit for part of a month is calculated according to the calendar days in that month. Maternity benefit is paid monthly in arrears. The amount of maternity benefit is 100% of the recipient’s compensated earnings. Compensated earnings are based on insured earnings from the last quarter before childcare leave, i.e. earnings from which compulsory sickness and maternity social insurance contributions were deducted, sickness benefit received, including two days paid by the employer, maternity benefit, sickness benefit for accidents at work or vocational illnesses and unemployment benefit.
Invalidity insurance - Beneficiaries and conditions for entitlement
An invalidity pension is paid if a person is recognised as disabled by the State Commission of Medical Social Examination and has a minimum social pension insurance record on the date when the invalidity was established. The required State social pension insurance record is also established.
The length of both the minimum and required record is established by taking the age of the invalid into account when the invalidity group is determined. Those under 23 years of age are entitled to an invalidity pension if the invalidity is established while they are contributing to social pension insurance or if they have a social pension insurance record of one year. Invalidity pension is calculated by adding basic and additional pensions. If those who have the required record for an invalidity pension are group I disabled, their basic invalidity pension is 1.5 times the base pension. If they are group II disabled, it is the same as the base pension. If they do not have the required record, their basic pension is proportionally lower. The additional pension is calculated in the same way as the additional old-age pension, which includes a person’s entire pension insurance record and adds to it the number of years left before they qualify for an old-age pension. If a person’s pension insurance record is shorter than the required record, then the number of years added is reduced proportionally. For group III disabled, the invalidity pension is calculated the same way as it was for group II, before being halved.
For further information on invalidity pensions, see the website of the State Social Insurance Fund ‘SoDra’ www.sodra.lt
Old-age insurance - Beneficiaries and conditions for entitlement
The state social insurance for old-age pensions is the main type of social security for elderly people. Persons who have reached pensionable age (63 years men and 61 years women; after 2026 pensionable age for both men and women 65 years) and have the minimum state social pension insurance period of 15 years are established for the old age pension.
All the persons who pay contributions for the full social insurance pension and have not attained the pensionable age yet may choose to transfer a part of the contributions to pension funds for the accumulation of their supplementary pension. Upon the establishment of private pension funds for the accumulation of a part of a state social insurance contribution, every person can accumulate a part of the contribution for his retirement with a private pension fund selected by him.
Life insurance (survivors' pensions) - Beneficiaries and conditions for entitlement
The State offers social support to children in care. Benefits provided include:
A one-off benefit for a newborn child, 11 times the minimum cost of living (414,16 EUR), granted to the guardian, provided the one-off benefit was not granted on the child’s birth and the child is under one and a half years of age.
A childcare or guardianship benefit, four times the minimum cost of living (150,60 EUR), paid each month to the person, family or private care home which has the status of guardian or trustee. The benefit is paid from the day the child went into care and continues until the child leaves care. If, having reached the age of 18, the child continues their studies at a general education day school, the benefit is paid directly to the child until they finish the school and up to 1 September of that year, provided they are not working.
A benefit to allow orphans and children taken into care under 25 to set up a home. A one off benefit, 75 times the minimum cost of living (2823,80 EUR), is granted for the specific purpose of purchasing a home or renting accommodation, paying bills and setting up a home.
A bursary for orphans, four times the minimum cost of living, is paid to students and pupils over 18 but under 24 years of age who were in care until they became adults, provided it is the first time they are training for a profession at a school of vocational or further education or studying for a Baccalaureate or Masters Degree at a school of higher education, and they are not working or being supported by the State.
Upon the death of a person who paid State social insurance contributions, a State social insurance survivors’ pension is paid to the deceased’s spouse and children, or similar, if the deceased was entitled by law to receive the State social insurance invalidity pension, or if they would have become an invalid or were receiving an old-age pension or other such pension. A survivors’ pension accounts for 20% of the group II invalidity pension to which the deceased would have been entitled. If one child is entitled to receive a survivors’ pension, then the survivors’ pension will account for 30% of the group II invalidity pension to which the deceased would have been entitled. If more children are entitled to receive it, then they each will receive an equal amount, but not more than 30% each, and not more than 80% of the entire group II invalidity pension in total.
For further details of State social benefits, see the website of the Ministry of Social Security and Labour of the Republic of Lithuania.
Insurance for occupational accidents and diseases - Beneficiaries and conditions for entitlement
The following must be protected by social insurance against accidents at work and occupational illnesses,
those working under an employment contract, in organisations where they were elected to carry out particular tasks, those working on a membership basis in industrial companies, prospective lawyers;
State politicians, judges of the Constitutional Court and other courts, candidates to the judiciary, officials of the public prosecutor’s office, the Chairman of the Bank of Lithuania, members of the bank’s board, the heads of State institutions, other State institution officials appointed by the Seimas or the President of the Republic, others carrying out State duties, except officials from the Interior Ministry and its institutions, professional soldiers in the defence system and officials in the State Security Department;
pupils of vocational schools, students of further and higher education while they are at their institution of vocational training or with a company and those sent by labour exchanges to retrain with companies or to do public work;
those at social and psychological rehabilitation institutions, for their time at work;
those sentenced to imprisonment, for their time at work.
The above group is insured by the employer, who contributes the equivalent of 0.3% of an employee’s salary to the State Social Insurance Fund.
These contributions give entitlement to:
sickness benefit for occupational accidents or illnesses;
periodic incapacity compensation;
one-off incapacity compensation;
periodic insurance payments upon the death of the insured party.
For further information on these payments, see the website of the State Social Insurance Fund Board.
Private insurance companies offer various types of insurance against occupational accidents and illnesses, such as:
Employer’s civil liability insurance;
insurance against occupational accidents;
health (medical expenses) insurance.
Family benefits - Beneficiaries and conditions for entitlement
The State family and child support system consists of two main parts: benefits paid irrespective of a family’s wealth and income, and means-tested benefits for low-income families. A list of benefit-providing social institutions can be found on the website of the Ministry of Social Insurance and Labour of the Republic of Lithuania. Social benefit is available to a family where income per capita is less than the State-supported income: if the family members are in work, receiving unemployment or study benefit, are studying, unemployed, registered with an unemployment exchange and the payment period of their unemployment benefit has ended, or their employment contract supported by the Public or Employment Fund has expired (provided they held it for at least two months and did not terminate it voluntarily), if they are pensioners or invalids; if one of the family members is caring for a family member who is sick or a group I or II invalid; a mother or father raising a child under the age of three at home; a mother raising three or more children under the age of 16 at home; if at least one child is under the age of eight and is not attending pre-school institutions or school; and other families who are entitled to social insurance due to exceptional circumstances. Benefit is paid for three months. The amount of benefit depends on a family’s income. The benefit is 90% of the difference between State-supported family income and the average monthly family income.
Compensation for heating expenses and hot and cold water are paid to low-income families with a registered address. Also, a family member registered with an employment exchange and not receiving unemployment benefit is entitled to compensation provided they have been registered for at least six months. Compensation is paid for three months. Legal basis: the law governing compensation paid to low-income residents of apartments and private houses for heating and hot and cold water expenses.
Free school meals are available for children in low-income families still attending school.
A one-off benefit is available for poor people. The amount of benefit is determined by the council. It is paid at the council’s discretion in cases of poverty, homelessness, illness, invalidity, natural disaster, and so on. The rules governing the distribution of the one-off benefit are determined by the council.
Benefit is also available for families raising three children. The benefit is paid monthly and is equivalent to the minimum cost of living.
Unemployment benefits - Beneficiaries and conditions for entitlement
The unemployment insurance benefit is granted to persons who are registered as unemployed at the Local labour exchange, whose unemployment insurance record is not shorter than 12 months during the last 30 months and last insurance period is completed in Lithuania. If a person hasn’t completed the required unemployment insurance period over the last 30 months in Lithuania, but she/he was employed in another Member State during the last 30 months and has an U1 document, person might become entitled to unemployment insurance benefits. An unemployed person may receive U1 document in the Member State where he/she was insured with unemployment insurance before leaving the country or person can fill in an application form in Local labour exchange which then be sent to the reference country.
If the person who is awarded with the unemployment insurance benefit in Lithuania is willing to seek a job in another Member State, she/he can export his benefits with an U2 document (issued by Local labour exchange) if person have been registered for at least four weeks as an unemployed person with a Local labour exchange (under certain circumstances his/her departure may be authorized before such time expires). The unemployed person must registerwith an official employment institution of the Member State to which he/she is going withinseven days after he left Lithuania and must also submit the U2 document. The unemployed person must follow the control procedures of the employment institution of the Member State to which she/he arrives in search of a new job. Entitlement to the unemployment insurance benefits shall continue for a maximum period of three months (under certain circumstances might be extended to 6 months).
Minimum income guarantee - Beneficiaries and conditions for entitlement
The Government of the Republic of Lithuania sets a minimum hourly rate and a minimum monthly salary according to the Labour Remuneration Act of the Republic of Lithuania. The hourly rate and monthly salary paid to the employee cannot be lower than the minimum hourly rate and the minimum monthly salary set by the Government of the Republic of Lithuania. This same law also regulates other conditions of labour payment. The current minimum monthly salary is 400 EUR, while the minimum hourly rate is 2,45 EUR.