Social Security Programs Throughout the World: Europe, 2002

Lithuania

Exchange rate: U.S.$1.00 equals 3.99 litas (Lt).

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1925.

Current laws: 1956, 1990, and 2000.

Type of program: Social insurance system.

Coverage

Insured workers and permanent residents.

Source of Funds

Insured person: 2.5% of wage.

Employer: 22.5% of payroll.

Government: Any deficit. In addition to pensions, the state social insurance budget finances the other social insurance programs.

Qualifying Conditions

Old-age pension: 62 years (men) and 58 years (women).

Disability pension: Disability involving either permanent or prolonged incapacity for work. Depending on age, person must have minimal social insurance work record.

Survivor pension: The deceased must have been a pensioner or, at the time of death, must have had the length of coverage necessary for award of a disability pension.

Old-Age Benefits

The basic pension is set at no less than 110% of the poverty level; and a supplementary pension is based on years of coverage and the ratio of individual earnings to national average earnings.

Permanent Disability Benefits

Disability pension: Varies according to degree of disability.

Survivor Benefits

Survivor pension: Eligible survivors include children up to age 18 (24 if student) and a spouse who has reached old age or is disabled.

The spouse receives 20% of the deceased wage earner's total benefit. Each child receives 25% of the deceased's pension. Total entitlement may not exceed 80% of the deceased worker's pension.

Administrative Organization

Ministry of Social Security and Labor.

State Social Insurance Fund Council (composition determined by the government).

State Social Insurance Fund Board.

Territorial State Social Insurance Board Offices (cities and regions).

Sickness and Maternity

Regulatory Framework

First law: 1925.

Current law: 1991 as amended, 2000.

Type of program: Dual social insurance and social assistance systems for cash benefits and universal system for medical care.

Coverage

Sickness benefits: Persons insured under compulsory or voluntary social insurance.

Medical benefits: All residents.

Source of Funds

Insured person: 0.5% of wage.

Employer: 3% of payroll.

Government: Any deficit.

Qualifying Conditions

Sickness and medical benefits: Prior to the date of claim for temporary incapacity for work, the insured shall have a sickness and maternity social insurance record covering not less than 3 months during the past 12 month or 6 months during the past 24 months. If an incomplete sickness or maternity social insurance record is as a consequence of parental leave to care for a child of 1 to 3 years of age, a social insurance record shall be calculated from 12 months prior to the leave commencing.

Sickness and Maternity Benefits

Sickness benefit: Employer pays at least 80% of recipient's average salary for first 2 days; subsequently, social insurance pays 85% of the reimbursed amount of the salary. This benefit cannot be less than the average monthly insurable income valid in the month of the disability for the recipient's full compensatory wage.

Maternity benefit: Provided for 70 calendar days before and 56 calendar days after the expected date of childbirth. Benefit cannot be less than 1/4 of the average monthly insurable income in effect that month when pregnancy and childbirth leave was granted.

Child care benefit: Either parent may take official leave from employment for up to 1 year to care for the new infant and receive child care benefit equal to 60% of wages.

Workers' Medical Benefits

Provided directly by government health facilities. Cost of medication during stay in permanent medical establishments is covered by the state.

In case of outpatient treatment for insured persons, part of the cost of medication is covered by the state social insurance budget.

Dependents' Medical Benefits

Same as for head of family.

Administrative Organization

Ministry of Social Security and Labor.

Ministry of Health.

State Social Insurance Fund Board and its territorial social insurance departments.

Local authorities.

Work Injury

Regulatory Framework

First law: 1991.

Current laws: 1991 and 2000.

Type of program: Social insurance.

Employer liability for compensation governed by state legislation.

Coverage

Wage earners.

Source of Funds

Insured person: None.

Employer: 1% of payroll.

Government: None.

Qualifying Conditions

Work injury benefits: No minimum qualifying period.

Temporary Disability Benefits

100% of wage, payable until resumption of work capacity or determination of disability.

Permanent Disability Benefits

Varies according to degree of disability.

Survivor Benefits

Survivor pension: Eligible survivors include children up to age 18 (24 if student) and a spouse who has reached old age or is disabled.

The spouse receives 20% of deceased wage earner's total benefit. Each child receives 25% of the deceased's pension. Total entitlement may not exceed 80% of deceased worker's pension.

Administrative Organization

Ministry of Social Protection.

State Social Insurance Administration and its territorial social insurance departments.

Unemployment

Regulatory Framework

First law: 1919.

Current law: 1990 and 1996.

Type of program: Social insurance.

Coverage

Employed persons.

Source of Funds

Insured person: None.

Employer: 1.5% of payroll is transferred to the unemployment fund.

Government: Allocations from state budget in case of deficit.

Qualifying Conditions

Unemployment benefit: 24 months of contributions in the last 3 years.

Unemployment Benefits

Amount of unemployment benefit depends on the insured's state social insurance record and the reason for job loss.

Minimum benefit is government-set state-supported income (135 Lt).

Maximum benefit is twice the minimum standard of living (250 Lt).

Payable from the eighth day after registration but for no more than 6 months in any 12-month period.

Administrative Organization

Ministry of Social Security and Labor.

Employment Exchange of Lithuania, comprising the national and territorial employment exchanges.

Family Allowances

Regulatory Framework

First law: 1990.

Current law: 2000.

Type of program: Benefits are financed by state and municipal budgets and provide means-tested social pensions to families with low income.

Small grants are also provided that are not subject to means-testing.