Background information

On 16 June 2021, Law No XIV-375 amending Articles 11-1, 14, 18, 21, 24, and 33 and adding Article 6-1 to Law No IX-110 on Sickness and Maternity Social Insurance of the Republic of Lithuania entered into force, providing, among other amendments, for a more favourable calculation of maternity, paternity and childcare benefits for parents whose insured income decreased due to downtime during the pandemic. This is aimed at protecting families with small children from the financial hardship caused by the COVID-19 pandemic.

Content of measure

The amendments to the law provide for a more favourable calculation of maternity, paternity and childcare benefits for parents whose insured income decreased due to downtime during the pandemic. The amounts of the benefits will be calculated by taking persons’ incomes before the announcement of the first lockdown. More favourable arrangements also apply to the self-employed who faced income decreases during the lockdown.

The amount of maternity, paternity and childcare benefits in Lithuania is usually calculated on the basis of person’s insured income received during the 12 calendar months preceding the month in which the entitlement to the benefits arises. Persons who have already been granted maternity, paternity and childcare benefits may apply for a more favourable recalculation thereof. The resulting difference in benefits will be transferred to personal accounts by 28 February 2022 at the latest.

Amendments to the law related to the (re)calculation of the above benefits will become effective in Lithuania from 1 November 2021.

Use of measure

According to the estimates of the Ministry of Social Security and Labour (MSSL), around 5,000 beneficiaries who have already received lower benefits and about 5,000 of those who are yet to receive them will be entitled to higher maternity, paternity and childcare benefits. The benefits will be reimbursed from the state budget. The need for funds is estimated to be €8 million.

Target groups

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

Actors and funding

Actors	Funding
National government Social insurance	National funds

Social partners

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

	Trade unions	Employers' organisations
Role	Informed	Informed
Form	Not applicable	Not applicable

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

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

Involvement

No information available.

Views and reactions

No information available.

Sources

• 08 June 2021: Law No XIV-375 amending Articles 11-1, 14, 18, 21, 24, and 33 and adding Article 6-1 to Law No IX-110 on Sickness and Maternity Social Insurance of the Republic of Lithuania (e-seimas.lrs.lt)
• 08 June 2021: More favourable calculation of benefits for parents facing a reduction in their incomes due to the pandemic (socmin.lrv.lt)