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Factsheet for case LT-2020-24/906 Updated – measures in Lithuania

Temporary job-search benefit for unemployed who would otherwise not be eligible to receive benefits

Laikinoji darbo paieškos išmoka

Country Lithuania , applies nationwide
Time period Temporary, 12 June 2020 – 31 August 2021
Type Legislations or other statutory regulations
Category Income protection beyond short-time work
– Income support for unemployed
Author Rasa Mieziene, Inga Blaziene (Lithuanian Centre for Social Sciences)
Case created 02 July 2020 (updated 18 October 2021)

Background information

Law amending Articles 25, 41, 42, 44 and 48-1 of Law on Employment of the Republic of Lithuania (No XII-2470) came into force in Lithuania on 12 June 2020, introducing a temporary job-search benefit. The purpose of the amendments is to provide support for persons who do not meet the eligibility criteria for unemployment social insurance benefit and for those who have previously received the unemployment benefit, but the period for its payment has expired. The aim is to ensure that not one unemployed person is left without income at the end of the quarantine.

Content of measure

Pursuant to the Law, persons registered with the Public Employment Services (PES) shall be entitled to a job-search benefit, if all of the following conditions are met:

  • the person has been granted the status of an unemployed person;
  • at the moment of applying to the PES for a job-search benefit and at the time of deciding on granting the benefit, the unemployed person does not participate in any active labour market policy measures.

The amount of the benefit consists of:

  • 33% of the minimum monthly wage (MMW) approved by the Government of the Republic of Lithuania (GRL) applicable in the month for which the job-search benefit is paid (i.e. €200 for persons not entitled to unemployment social insurance benefits and for persons for whom the benefit payment period has expired);
  • 7% of the MMW (i.e. €42 for persons entitled to the unemployment social insurance benefit).

The benefit is paid for up to six months, but no longer than by 31 December 2020.

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, establishing that from 1 July 2021 the €212 temporary job-search benefit (TJSB) will also be available to self-employed persons whose self-employment was deregistered not earlier than three months before the declaration of the emergency or lockdown. The amendment to the law also stipulates that the TJSB shall be paid no longer than until 31 August 2021.

01 January 2021

On 1 January 2021, Law No XIV-131 amending Articles 38, 41, 42 and 48-1 of the Law on Employment of the Republic of Lithuania (No XII-2470) came into force in Lithuania, amending the procedure for paying temporary job search benefit (TJSB). In compliance with the amendments to the law, persons shall meet all of the following conditions to be entitled to the TJSB:

  • the person shall have been granted the unemployment status;
  • the unemployed person shall not participate in active labour market policy measures at the time of applying for the benefit;
  • the person’s employment contract or legal relations deemed to be equal to employment relations have expired not more than three months before the date of the Government-introduced state of emergency or quarantine;
  • the person is not entitled to unemployment social insurance benefit (USIB) or the benefit payment period has expired.

The persons above shall be paid benefits in the amount of 33% of the minimum monthly wage. As of 2021, the minimum monthly wage is €642. Accordingly, the benefit will amount to approx. €212 per month. At the end of the quarantine/emergency, the benefit will be paid for one more month and discontinued thereafter. Currently, the quarantine in the entire territory of Lithuania is in effect until 31 May 2021, thus the measure should be discontinued on 30 June 2021 (unless the quarantine is further extended).

Use of measure

According to the Ministry of Social Security and Labour (MSSL), a total of 89,077 applications for temporary job-search benefits were received by the PES in Lithuania during the period from 12 June 2020 to 1 July 2020. The amount earmarked for the job-search benefits from the State budget is €265 million. On 23 November 2020, there were 109,629 persons that were granted €42 and 187,173 persons that were granted €200; the total amount paid constituted €100.5 million. According to the MSSL, a total of 398,983 applications for TJSB were received by the PES in Lithuania during the period from 12 June 2020 to 29 March 2021; TJSB were granted for 352,556 unemployed people. The total amount paid down in TJSB amounted to €214.1 million on 29 July 2021.The total amount paid down in TJSB during the first and the second lockdown amounted to €245.6 million on 27 September 2021.

Target groups

Workers Businesses Citizens
Unemployed
Does not apply to businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Social partners jointly
Public employment service
Social insurance
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) 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

SPs positively assessed measures planned in Lithuania for the post-quarantine period (including the temporary job-search benefit) and appreciated that their proposals had been taken into account.

Sources

  • 24 April 2020: The 1.3 billion euro social support scheme launched (Pateikta 1.3 mlrd. eurų socialinės paramos programa) (www.lps.lt)
  • 04 June 2020: Law amending Articles 25, 41, 42, 44 and 48-1 of Law on Employment of the Republic of Lithuania (LR užimtumo įstatymo Nr. XII-2470 25, 41, 42, 44 ir 48-1 straipsnių pakeitimo įstatymas) (www.e-tar.lt)
  • 23 December 2020: Law No XIV-131 amending Articles 38, 41, 42 and 48-1 of the Law on Employment of the Republic of Lithuania (Užimtumo įstatymo Nr. XII-2470 38, 41, 42 ir 48-1 straipsnių pakeitimo 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), Temporary job-search benefit for unemployed who would otherwise not be eligible to receive benefits, case LT-2020-24/906 (measures in Lithuania), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

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