Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure LT-2020-20/914 – Updated – measures in Lithuania
|Country||Lithuania , applies nationwide|
|Time period||Temporary, 15 May 2020 – 31 August 2021|
|Type||Legislations or other statutory regulations|
Promoting the economic, labour market and social recovery
– Active labour market policies (enhancing employability, training, subsidised job creation, etc.)
|Author||Inga Blaziene (Lithuanian Social Research Centre) and Eurofound|
|Measure added||02 July 2020 (updated 15 June 2022)|
On 15 May 2020, a Law amending Articles 5-1, 20, 25, 35, 37, 38, 41, 42, 43, 44, 47 and 55 of and adding Article 48-1 to the Law on Employment of the Republic of Lithuania No XII-2470 came into effect, laying down that wage subsidies will continue to be available for employers at the end of quarantine, thereby helping business to recover and protecting employees from possible dismissals.
The legislative amendments stipulate that at the end of the quarantine and emergency situation, or when the employee is returned to work from the idle time, the employer can receive subsidies for employees’ wages for another six months:
Employers falling within at least one of the three categories below shall be eligible for the subsidies:
According to the data provided by the Ministry of Social Security and Labour, the total amount paid down in wage subsidies at the end of quarantine amounted to €169,840 million on 25 September 2020; around 20,776 employers received wage subsidies; the total amount paid down in wage subsidies at the end of quarantine amounted to €561.4 million on 12 January 2021; around 27,618 employers received wage subsidies for 262,078 employees by 12 January 2021.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
Social partners jointly
Company / Companies
Public employment service
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Direct consultation outside a formal body||Direct consultation outside a formal body|
Social partners' role in the implementation, monitoring and assessment phase:
Social partners (SPs) were consulted only ad hoc, the tripartite meeting was not held. On 24 April 2020, the Advisory Group for Post-Quarantine Social Issues under the Ministry of Social Security and Labour started its work in Lithuania, discussing measures to reduce social effects during the post-quarantine period in Lithuania. SPs were also invited to participate in the group.
The social partners positively assessed the measures planned in Lithuania for the post-quarantine period (including wage subsidies at the end of quarantine) and appreciated that their proposals had been taken into account. The Lithuanian Trade Union Confederation (LTUC) and other SPs have repeatedly expressed the view that measures should not be discontinued at the end of the quarantine and should remain available at least 3 months after the quarantine is over. In view of this, this measure was supported by the SPs.
Eurofound (2020), Wage subsidies to companies at the end of quarantine, measure LT-2020-20/914 (measures in Lithuania), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LT-2020-20_914.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.