Lithuania Statutory and Private Employee Benefits, 2024 Update
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Lithuania Statutory and Private Employee Benefits Overview
Lithuania inherited a Soviet-style pension system with characteristics such as generous early retirement provisions, privileges for certain occupational groups, and a weak link between contributions and benefits. The economic crisis in the 1990s forced the Lithuanian government to undertake pension system reforms in 1995. The reforms aimed to make changes in the State Social Pension Insurance (first pillar). Their goal was to eliminate generous early retirement provisions and enhance system stability. Additionally, they intended to create a strong link between contributions and benefits.
The Lithuania employee benefits report provides in-depth industry analysis, information, and insights into employee benefits in Lithuania, including an overview of the state and compulsory benefits, detailed information about the private benefits, insights on various central institutions responsible for the administration of the different branches of social security, and the regulatory framework of the employee benefits in Lithuania.
Key Regulations | · The Labor Code regulates employment relations
· Law on Occupational Pensions on occupational retirement provision. · Law on Supplementary Voluntary Accumulation of Pensions applies to second-pillar pension funds · Law on Accumulation of Pensions (Pillar II) covers the process of the accumulation of a section of the state social insurance contributions, pension fund members’ rights and requirements for pension agreement, maximum fees, and payment of pension benefits. · Law on Reform of the Pension System for the state social insurance contributions. · Law on Safety and Health at Work covers workers against occupational risks · Law on State Social Insurance Pensions |
Key State and Compulsory Benefits | · Retirement Benefits
· Death in Service · Long-Term Disability Benefits · Short-Term Sickness Benefits · Medical Benefits · Workers’ Compensation Insurance · Maternity and Paternity Benefits · Other Benefits |
Key Private Benefits | · Retirement Benefits
· Death Benefits · Medical Benefits · Disability Benefits · Accidental Death and Dismemberment Benefits · Other Benefits |
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Lithuania Employee Benefits - Regulations
Some of the various laws guiding employee benefits in Lithuania are:
- The Labor Code regulates employment relations
- Law on Occupational Pensions on occupational retirement provision.
- Law on Supplementary Voluntary Accumulation of Pensions applies to second-pillar pension funds
- Law on Accumulation of Pensions (Pillar II) covers the process of the accumulation of a section of the state social insurance contributions, pension fund members’ rights and requirements for pension agreement, maximum fees, and payment of pension benefits.
- Law on Reform of the Pension System for the state social insurance contributions.
- Law on Safety and Health at Work covers workers against occupational risks
- Law on State Social Insurance Pensions
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Lithuania Employee Benefits - State and Compulsory Benefits
The key state and compulsory benefits offered by employers in Lithuania are retirement benefits, death in service, long-term disability benefits, short-term sickness benefits, medical benefits, workers’ compensation insurance, maternity and paternity benefits, and other benefits.
Retirement Benefits: In Lithuania, the Law on State Social Insurance Pensions (Lietuvos Respublikos valstybinių socialinio draudimo pensijų) governs the payment of state retirement pensions. The Law on Early Retirement Pensions (Lietuvos Respublikos prekybos pensijos įstatymas) regulates the payment of early retirement pensions, which are also known as old-age pensions. This scheme ensures that employees and their dependents receive an assured level of financial protection after their working lives are over.
Lithuania State and Compulsory Benefits
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Lithuania Employee Benefits - Private Benefits
The key private benefits offered by employers in Lithuania are retirement benefits, death benefits, medical benefits, disability benefits, accidental death and dismemberment benefits, and other benefits.
Retirement Benefits: Employers mostly provide voluntary defined contribution private pension plans to their employees or contribute to a life insurance scheme. Private life insurance companies and pension fund operators offer the supplementary voluntary funded pension scheme under Pillar III. They do this through group pension insurance schemes. These group pension insurance schemes cover a significant number of the economically active population in the country.
Lithuania Private Employee Benefits
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Scope
This report provides a detailed analysis of employee benefits in Lithuania:
- It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits
- It covers an exhaustive list of employee benefits, including retirement benefits, death in service, long-term disability benefits, medical benefits, workmen’s compensation insurance, maternity and paternity benefits, family benefits, unemployment, social inclusion programs, leaves and holidays, and private benefits
- It highlights the economic and regulatory situations relating to employee benefits in Lithuania
Key Highlights
• The Ministry of Social Security and Labor (Socialinės Apsaugos Ir Darbo Ministerija), The Lithuanian Labor Exchange (Lietuvos darbo birža), Municipal social assistance units (Savivaldybių socialinės paramos vienetai), and The Ministry of Health (Sveikatos apsaugos ministerija) are responsible for the functioning of the overall social security system.
• A person’s national insurance contribution is determined based on their income.
• An insured person who is unemployed or unable to work and whose benefits have been exhausted is entitled to a credited contribution.
• In Lithuania, employers provide voluntary retirement benefits to their employees through supplementary voluntary funded pension scheme.
Reasons to Buy
- Make strategic decisions using in-depth information related to employee benefits in the country.
- Assess employee benefits of the market, including state and compulsory benefits and private benefits.
- Gain insights into the key employee benefit schemes offered by private employers in the country.
- Gain insights into key organizations governing the employee benefits market, and their impact on companies.
Table of Contents
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Frequently asked questions
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What are the key regulations guiding employee benefits in Lithuania?
Some of the key laws in Lithuania are the Labor Code regulates employment relations, the Law on Occupational Pensions on occupational retirement provision, the Law on Supplementary Voluntary Accumulation of Pensions applies to second-pillar pension funds, and the Law on Accumulation of Pensions (Pillar II) covers the process of the accumulation of a section of the state social insurance contributions, pension fund members’ rights and requirements for pension agreement, maximum fees, and payment of pension benefits among others.
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What are the key state and compulsory benefits for employees in Lithuania?
The state and compulsory benefits for employees in Lithuania are retirement benefits, death in service, long-term disability benefits, short-term sickness benefits, medical benefits, workers’ compensation insurance, maternity and paternity benefits, and other benefits.
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What are the key private benefits for employees in Lithuania?
The private benefits for employees in Lithuania are retirement benefits, death benefits, medical benefits, disability benefits, accidental death and dismemberment benefits, and other benefits.
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