Employee Benefits in Lithuania, 2022 Update - Key Regulations, Statutory Public and Private Benefits, and Industry Analysis

Employee Benefits in Lithuania, 2022 Update - Key Regulations, Statutory Public and Private Benefits, and Industry Analysis

Summary

Lithuania inherited a Soviet-style pension system with characteristics such as generous early retirement provisions, privileges for certain occupational groups, and a weak link between contributions and benefits. The economic crisis in the 1990s forced the Lithuanian government to undertake pension system reforms in 1995. The reforms were intended to make changes in the State Social Pension Insurance (first pillar), enhance the stability of the system by eliminating the generous early retirement provisions, and create a strong link between contributions and benefits. In 2004, the second and third pillars - funded schemes and supplementary pension provisions - were introduced. In principle, all employees in Lithuania are covered by the social security system, but the actual coverage rate is only 83% of the workforce. To receive a full pension, individuals must satisfy 30 years of insured status and the minimum qualifying period is 15 years. Individuals who are unable to reach the minimum qualifying period are eligible for a social assistance pension, which is equal to 90% of the basic pension.

The report provides in-depth industry analysis, information, and insights of the employee benefits in Lithuania, including an overview of the state and compulsory benefits in Lithuania, detailed information about the private benefits in Lithuania, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in Lithuania.

Key Highlights

• The Ministry of Social Security and Labor, State Social Insurance Fund Board - SoDra, The Lithuanian Labor Exchange, Municipal social assistance units, The Ministry of Health, and National Health Insurance Fund are responsible for the functioning of the overall social security system.
• A person’s national insurance contribution is determined based on their income.
• An insured person who is unemployed or unable to work and whose benefits have been exhausted is entitled to credited contribution.
• In Lithuania, employers provide voluntary retirement benefits to their employees through supplementary voluntary funded pension schemes and group pension insurance schemes.

Scope

This report provides a detailed analysis of employee benefits in Lithuania -

• It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits
• It covers an exhaustive list of employee benefits, including retirement benefits, death in service, long-term disability benefits, short-term sickness, medical benefits, workmen's compensation insurance, maternity and paternity benefits, family benefits, unemployment, Long-term care, Minimum resource, leaves and holidays and private benefits
• It highlights the economic and regulatory situations relating to employee benefits in Lithuania

Reasons to Buy

• Make strategic decisions using in-depth information related to employee benefits in the country
• Assess employee benefits of the market, including state and compulsory benefits and private benefits
• Gain insights into the key employee benefit schemes offered by private employers in the country
• Gain insights into key organizations governing employee benefits market, and their impact on companies