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, providing for higher wage subsidies payable to employers for 60+ employees put to downtime. Amendments to the Law were initiated in view of the fact that the introduction of an emergency situation and quarantine measures in the country made it more difficult for older people to integrate into or stay in the labour market.

Content of measure

The amendments to the Law introduced a special regulation for employees older than 60 years of age in Lithuania. Employers may be paid wage subsidies for 60+ employees put to downtown. The amount of the subsidy may be 100% or 70% of wages, at the choice of the employer:

• If the employer chooses a 100% subsidy, the state will contribute maximum 1 minimum monthly wage (MMW) (€607 gross);
• If the employer chooses a 70% subsidy, the state will be able to contribute 1.5 MMW (€910.5 gross).

Wages accrued during idle time may not exceed those fixed earlier in the employment contract. Wage subsidies may be granted during quarantine and emergency.

Having used the subsidy, the employer is required to retain at least 50% of jobs for at least 3 months from the end of the payment of the subsidy.

Use of measure

According to the Ministry of Social Security and Labour, a total of 25,242 companies reported to the State Labour Inspectorate on employees put to downtime during the period from 1 March 2020 to 1 July 2020. Over this period, a total of 189,440 employees were put to downtime (and wage subsidy applications were received). Unfortunately, information on the share of 60+ employees is not available.

Target groups

Workers	Businesses	Citizens
Older people in employment (aged 55+)	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Social partners jointly Public employment service	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 (SP) 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 measures planned in Lithuania for the post-quarantine period (including subsidies for older employees) 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)