European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

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

Wage subsidies to companies at the end of quarantine

Darbo užmokesčio subsidijos įmonėms pasibaigus karantinui

Country Lithuania , applies nationwide
Time period Temporary, 15 May 2020 – 31 August 2021
Context COVID-19
Type Legislations or other statutory regulations
Category 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)

Background information

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.

Content of measure

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:

  • 100% in the first two months,
  • 50% in the third and fourth month, and
  • 30% in the fifth and sixth month.

Employers falling within at least one of the three categories below shall be eligible for the subsidies:

  1. Announced downtime . Subsidies will only be paid for employees who were or are put to downtime and were subsidised during the quarantine or emergency. The subsidy may be paid upon revocation of downtime during the quarantine or at the end of the quarantine period.
  2. Employ supported unemployed persons . Subsidies may be paid to employers who employ anew supported unemployed people sent by the Public Employment Services after the quarantine is over: long-term unemployed people, young people, etc. The subsidies are available from 15 May 2020, also after the quarantine period is over.
  3. Affected by COVID-19 . Subsidies are also earmarked to employers who are in the lists of COVID-19 affected companies compiled by the State Tax Inspectorate. The subsidies to such employers will be paid in respect of a maximum of 10 employees when the company employs up to 20 people or for a maximum of 50% of employees if the company employs 21 and more people. The subsidies are available from 15 May 2020, also after the quarantine period is over.

Updates

The following updates to this measure have been made after it came into effect.

01 July 2021

On 1 July 2021, Law No XIV-351 amending Articles 5-1, 25, 35, 41, 42, 43, and 48-1 of Law No XII-2470 on Employment of the Republic of Lithuania entered into force, revising the procedure for paying wage subsidies to companies at the end of lockdown (quarantine). From 1 July 2021, this subsidy shall be granted to employers who have retained jobs and for whom payment of the downtime subsidy is discontinued after employees’ returning from the downtime or expiration of the announced downtime period.

The subsidy is granted only to make up for wages to those employees who were put to downtime for a period exceeding 75 working days (for at least 600 working hours) during the first six calendar months from the date the state of emergency and lockdown were introduced by the GRL. The subsidy shall be paid for up to two months, but not longer than until 31 August 2021.

The amount of the subsidy shall be:

  • 100% of the employee’s gross wage in the first calendar month, but not more than 0.9 of the amount of the minimum monthly wage (MW) approved by the Government;
  • 100% of the employee’s gross wage in the second calendar month, but not more than 0.6 of the MW.

In July 2021, the MW in Lithuania constituted €642.

Use of measure

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.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Social partners jointly
Company / Companies
Public employment service
Companies
Employer
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Direct consultation outside a formal body Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Peak or cross-sectoral level

Involvement

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.

Views and reactions

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.

Sources

  • 24 April 2020: The 1.3 billion euro social support scheme launched (Pateikta 1.3 mlrd. eurų socialinės paramos programa) (www.lps.lt)
  • 07 May 2020: 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 Tourism of the Republic of Lithuania (LR užimtumo įstatymo Nr. XII-2470 5-1, 20, 25, 35, 37, 38, 41, 42, 43, 44, 47, 55 straipsnių pakeitimo ir Įstatymo papildymo 48-1 straipsniu įstatymas) (www.e-tar.lt)
  • 20 January 2021: Managing the consequences of COVID-19: social indicators (COVID-19 pasekmių valdymas: socialiniai rodikliai) (socmin.lrv.lt)
  • 27 May 2021: Law No XIV-351 amending Articles 5-1, 25, 35, 41, 42, 43, and 48-1 of Law No XII-2470 on Employment of the Republic of Lithuania (www.e-tar.lt)

Citation

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

Share

Eurofound publications based on EU PolicyWatch

30 January 2023

 

Measures to lessen the impact of the inflation and energy crisis on citizens

Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. As winter approaches, preventing and addressing energy poverty becomes a priority. This article summarises the policy responses as reported in Eurofound’s EU PolicyWatch database from January to September 2022.

Article

12 September 2022

 

First responses to cushion the impact of inflation on citizens

Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.

Article

12 September 2022

 

Policies to support EU companies affected by the war in Ukraine

This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.

5 July 2022

 

Policies to support refugees from Ukraine

This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.

Article

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.