The Lithuanian government and parliament groups have agreed to set up an unemployment fund. The money would be used to pay benefits to people who lose jobs after working at least three years for the same employer.
Algimanta Pabedinskienė
© DELFI / Mindaugas Ažušilis

Algimanta Pabedinskienė, the Minister of Welfare and Labour, said on Wednesday the agreement was reached among government representative and leaders of political party group in parliament.

"Group leaders and government representatives agreed to have a fund, this is one thing. Second, we should clearly revise the existing proposals to prevent overlapping of benefits, that is, an employer should either pay an unemployment insurance benefit or a benefit from the fund," the minister told journalists after meeting with parliamentary group leaders on Wednesday.

The chairwoman of the parliamentary Committee for Social Affairs and Labour, Social Democrat MP Kristina Miškinienė, has told BNS that the Cabinet could not address the bill of the fund without a political agreement, thus delaying the adoption of Labour Code liberalization package which is making its way in parliament.

The reform should be adopted by this summer to be enforced in 2017.

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