The social security system in Lithuania is comprised of the social insurance
system, the medical insurance system and the social support system. The most
significant components of the State social security system are the social
insurance system (including pension insurance) and the medical insurance
system. Though the 30 June 1999 Law on Pension Funds came into effect on 1
January 2000, private pension funds do not actually function yet. At present,
all employees are insured on a mandatory basis. Employers (i.e. Lithuanian
economic entities or individuals that pay wages to employees) are required by
law to pay or withhold contributions in full on behalf of their employees.
Additionally, the law also provides for voluntary social insurance.
The 13 December 1990 Law No. I-864 of the Republic of Lithuania "On Support of
The 21 May 1991 Law No. I-1336 of the Republic of Lithuania "On State Social
The 28 July 1994 Law No. I-549 of the Republic of Lithuania "On State Social
The 21 May 1996 Law No. I-1343 of the Republic of Lithuania "On Health
The 3 June 1999 Law No. VIII-1212 of the Republic of Lithuania "On Pension
The 23 December 1999 Law No. VIII-1509 of the Republic of Lithuania "On
Occupational Accidents and Occupational Diseases Insurance";
The 12 September 2000 Law No. VIII-1926 of the Republic of Lithuania "On the
The 12 December 2000 Law No. IX-110 of the Republic of Lithuania "On Social
Insurance of Maternity and Illness";
The 18 November 1994 Resolution No. 1156 of the Government of the Republic of
Lithuania "On Approval of the Regulations of Grant and Payment of State Social
The 4 July 1997 Resolution No. 727 of the Government of the Republic of
Lithuania "On Approval of the Terms and Procedure of Payment of Compulsory
Health Insurance Contributions";
The 23 March 2000 Resolution No. 339 of the Government of the Republic of
Lithuania "On Approval of the Regulations of State Voluntary Social Pensions
The Ministry of Labour and Social Protection of the Republic of Lithuania
determines and implements policies regarding social support and social
insurance, prepares drafts of legal acts and adopts legal acts within its
The Board of the State Social Security Fund and its territorial departments
collect contributions and distribute insurance payments.
The Ministry of Health Care determines medical care policies, prepares drafts
of legal acts and adopts legal acts within its authority.
The Board of Compulsory Medical Insurance, an administrative unit under the
Government of the Republic of Lithuania, and the National Patients' Fund are
the main institutions in charge of compulsory medical insurance. The National
Patients' Fund receives its funding from a portion of the social insurance
contributions made to the State Social Security Fund and a portion of personal
income taxes collected by the State Tax Inspectorate.
The Securities Commission will be the main supervisor of pension fund
activities. In this respect, the Securities Commission is empowered to issue
legal acts and regulations within its competence. Its main functions are to
issue and revoke licences for pension fund activities, to give permissions to
reorganise pension funds, to provide official interpretations and
recommendations on pension fund activities, to apply sanctions and to take
other actions within its authority.
Social Security Contributions and Social Benefits
Social Security Contributions by Employers
Employers must pay to the State Social Security Fund a mandatory social
security contribution for every employee. The employer's contribution equals
31% of the employee's gross wage: 1% - labour accidents' insurance, 3% -
medical insurance, 22.5% - pension insurance; 3% - sickness and maternity or
paternity insurance; and 1.5% - unemployment insurance. Therefore, social
security contributions depend on the employee's gross wage which may not be
less than the minimum wage set by the Government (from 1 January 2001 set at
LTL 430 (EUR 124.54) per month). Employer's social security contributions are
not withheld from the gross wage, but must be calculated separately on top of
the gross salary and paid not later than the last working day before the 15th
day of the following month. The State Social Security Fund transfers medical
insurance contributions to the National Patients' Fund.
Contributions by Employers to Guarantee Fund
The purpose of the Guarantee Fund is to ensure the payment of limited amount
salaries to the employees of the enterprises that are under bankruptcy
procedures or have been adjudged bankrupt. Employers must pay to the Guarantee
Fund a mandatory contribution for every employee. The employer's contribution
equals 0.2% of the employee's gross wage.
Contributions by Employees
Employers must withhold 3% of the employee's gross wage as a social insurance
contribution (2.5% for pension insurance and 0.5% for sickness and maternity or
paternity insurance) payable to the State Social Security Fund.
State Social Insurance for Self-Employed Persons
The State Social and Medical Insurance is obligatory for self-employed persons:
The individuals described above must pay mandatory social security
contributions, different from those paid on employment basis, for themselves in
amounts established by the law.
owners or tenants of personal enterprises;
members of general and limited partnerships;
attorneys-at-law and assistant attorneys;
persons working under a tax patent;
farmers and adults who work on the farm.
Insured individuals are entitled to the following benefits under the social and
medical insurance system:
Point of Interest
widow, widower or orphan's pensions;
sickness or temporary disability benefits;
maternity or paternity benefits;
compensation for occupational accidents (compensation for illness resulting
from an occupational accident or occupational disease; single payment of
compensation for work disablement; periodic payment of compensation for work
Employers must register each employee with the local department of theBboard of the State Social Security Fund on the first day of work.