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.

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)