aA
Following years of discussions, the Lithuanian parliament endorsed on Thursday the government's proposal to set an income ceiling on social insurance contributions.
Seimas approves ceiling on social security contributions
© DELFI / Andrius Ufartas

The measure was passed in a vote of 77 to ten with six abstentions.

A ceiling of 120 annual average salaries will be introduced in 2019 and will be lowered to 84 in 2020 and to 60 in 2021.

Proponents say that a ceiling on contributions to the state social insurance fund Sodra will help keep skilled workers in Lithuania and create well-paid jobs. Critics have said, however, that there are no grounds for lowering the tax burden for high earners.

The parliament also approved the government's proposal to shifting a part of social security contributions onto the employee and tax that part at 19.5 percent, and to use central government budget funds as the sole source for paying the basic part of pensions.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
|Populiariausi straipsniai ir video

Lithuania's Devold says could make 100,000 medical coveralls by late summer

Norwegian-owned Lithuanian textile manufacturer Devold says it could producer around 100,000...

Tax revenue 15 percent short of target in March

The Lithuanian central government's tax revenue fell around 15 percent short of the target in March,...

Avia Solutions Group bought Bluebird Nordic

On the 24th of January 2020, Avia Solutions Group signed an agreement with BB Holding EHF for the...

GetJet Airlines set to lay off 370 employees

Lithuania's wet-lease and charter services provider GetJet Airlines has given lay-off notices to 370...

Avalanche of ideas developed in 'Hack the Crisis' hackathon

One of the most important tasks for hackathon organizers was to identify the most pressing issues,...

Top news

President signs into law tougher penalties for breaking quarantine rules

Lithuanian President Gitanas Nauseda has signed into law a legislative package introducing tougher...

811 coronavirus cases in Lithuania

On Sunday morning, there were 811 COVID-19 cases in Lithuania. 10 deaths related to the novel...

Lithuania's Devold says could make 100,000 medical coveralls by late summer

Norwegian-owned Lithuanian textile manufacturer Devold says it could producer around 100,000...

10th coronavirus death reported

Another patient infected with COVID-19 died in Lithuania on Saturday, bringing the country's death...

Lithuania no longer allows cars from Russia, Belarus to enter

A ban for passenger cars to enter Lithuania from Belarus and Russia have come into force on...

|Maža didelių žinių kaina