Employee Benefits in Lithuania 2021

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 were intended to make changes in the State Social Pension Insurance (first pillar), enhance the stability of the system by eliminating the generous early retirement provisions, and create a strong link between contributions and benefits. In 2004, the second and third pillars – funded schemes and supplementary pension provisions – were introduced. In principle, all employees in Lithuania are covered by the social security system, but the actual coverage rate is only 83% of the workforce. To receive a full pension, individuals must satisfy 30 years of insured status and the minimum qualifying period is 15 years. Individuals who are unable to reach the minimum qualifying period are eligible for a social assistance pension, which is equal to 90% of the basic pension.

The report provides in-depth industry analysis, information and insights of the employee benefits in Lithuania, including: overview of the state and compulsory benefits in Lithuania, detailed information about the private benefits in Lithuania, 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 Highlights

– The Law on State Social Insurance governs the social security system. It guarantees income to insured individuals in the event of maternity, old-age, or incapacity due to disease or disability.

– Social insurance system is based on a PAYG principle.

– The State Social Insurance Fund Board under the Ministry of Social Security and Labor pay social insurance benefits.

– Private life insurance companies or pension fund operators provide the supplementary voluntary funded DC pension scheme under Pillar III.


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, long-term care benefits, leave and private benefits

– It highlights the economic and regulatory situations relating to employee benefits in Lithuania

Reasons to buy

– Make strategic decisions using in-depth information related to employee benefits in Lithuania.

– Assess Lithuania’s employee benefits market, including state and compulsory benefits and private benefits.

– Gain insights into the key employee benefit schemes offered by private employers in Lithuania.

– Gain insights into key organizations governing Lithuania’s employee benefits, and their impact on companies.

Table of Contents

Table of Contents



2.1 What is this Report About?

2.2 Definitions





6.1 Retirement Benefits

6.1.1 Introduction

6.1.2 Eligibility

6.1.3 Benefits

6.1.4 Payment Options

6.1.5 Contributions

6.2 Death Benefits

6.2.1 Introduction

6.2.2 Eligibility

6.2.3 Benefits

6.2.4 Payment Options

6.2.5 Contributions

6.3 Long-Term Disability Benefits

6.3.1 Introduction

6.3.2 Eligibility

6.3.3 Benefits

6.3.4 Payment options

6.3.5 Contributions

6.4 Short-Term Sickness Benefits

6.4.1 Introduction

6.4.2 Eligibility

6.4.3 Benefits

6.4.4 Payment Options

6.4.5 Contributions

6.5 Medical Benefits

6.5.1 Introduction

6.5.2 Eligibility

6.5.3 Benefits

6.5.4 Payment Options

6.5.5 Contributions

6.6 Workmen’s Compensation Insurance

6.6.1 Introduction

6.6.2 Eligibility

6.6.3 Benefits

6.6.4 Payment Options

6.6.5 Contributions

6.7 Maternity and Paternity Benefits

6.7.1 Introduction

6.7.2 Eligibility

6.7.3 Benefits

6.7.4 Payment Options

6.7.5 Contributions

6.8 Other Benefits

6.8.1 Family Benefits

6.8.2 Long Term Care Benefits

6.8.3 Minimum Resources

6.8.4 Unemployment Benefits

6.8.5 Leaves and Holidays


7.1 Retirement Benefits

7.2 Death Benefits

7.3 Disability Benefits

7.4 Medical Benefits

7.5 Accidental Death and Dismemberment Benefits

7.6 Other Benefits


8.1 Methodology

8.2 Contact GlobalData

8.3 About GlobalData

8.4 GlobalData’s Services

8.5 Disclaimer

List of Tables

List of Tables

Table 1: Insurance Industry Definitions

Table2: Lithuania – Country Statistics

Table 3: Lithuania – Amendments to the new Labor Code

Table 4: Lithuania – Public Holidays 2021

List of Figures

List of Figures

Figure 1: Lithuania – Main Institutions of Social Security System


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