Lithuania's President Dalia Grybauskaitė has signed into law the reforms of the pension system and the state-run social insurer Sodra, part of the so-called new social model that has been subject to heated discussions.

To read this article, try a €5.99 monthly subscription by clicking here.
Dalia Grybauskaitė
© Reuters-Scanpix

"The president signed another 18 laws," her spokeswoman Daiva Ulbinaitė said on Friday. In her words, signing of the laws completed the analysis of the laws of the social model.

The laws envisage revising the formula of how retirement pensions will be calculated, setting out clear rules to index pensions to economic growth, and extending the mandatory length employment to 35 years before one can retire.

The Sodra reform envisages capping social security contributions: 120 average monthly wages in 2017 (average monthly wages stood at €748 in the first quarter of 2016) and 60 average monthly wages in 2022. The cap currently does not apply to Sodra contributions, just to benefits.

In 2017, the share of employer payments to Sodra will be cut by 1%.

The president has earlier vetoed the new Labour Code, another crucial part of the social model. The ruling coalition said that the plans to hold the extraordinary Seimas session would depend on the president's choice to veto other laws of the social model.

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

Prosecutors want exchanged Russian spy's accomplices tried in absentia

A criminal case in which charges were brought against two suspected accomplices of Nikolai...

Nauseda: Lithuania needs to spend 14 billion EUR on climate change over 10 years

Lithuania will need to spend 14 billion euros over ten years to meet its climate change commitments,...

Application to register "For the Fatherland" submitted in Prime Minister's name

Lithuania's brand database officially states that an application to register a brand " For the...

Parliament lowers election threshold to 3 percent

The Lithuanian Seimas on Tuesday lowered the parliamentary election threshold to 3 percent for...

Cuban dissident calls on Lithuania to block EU-Cuba deal

Cuban dissident Guillermo Farinas , on a visit to Vilnius, has called on Lithuania to block the...