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Partial-employment benefit

A part-time job is a working time that is less than half the normal number of working hours of an employee determined by the employer under certain economic conditions set by the Government. The salary reduced due shorter working hours shall be compensated to the employee by paying part-time benefit (PTB) in the procedure established by the Law on Unemployment Social Insurance.


Under Article 48 of the Labour Code, a part-time job may be determined when due to important economic reasons objectively existing in a particular area or sector of economic activity and recognized as such by the Government of the Republic of Lithuania the employer cannot provide the workers with a job and there are preconditions for the dismissal of a group of employees

 

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The employer shall apply to the Panevėžys Branch of "Sodra" for granting a part-time benefit to employees through the personal "Sodra" account for the policyholder by submitting a reasoned request for part-time benefit indicating the planned commencement of a part-time job, which may not be earlier than 30 days after the application date. The employer must submit along with the application the documents proving the circumstances referred to in Article 1 of the Labour Code, specify the reduced working time of each employee (up to 50 percent), the beginning of a part-time job and its duration.


An application for part-time benefit shall be submitted to the Board of the State Social Insurance Fund for consideration. Panevėžys Branch of "Sodra" shall take a decision on granting a part-time benefit after receiving the conclusion of the Board.

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The partial-employment benefit is calculated as an unemployment social insurance benefit and comprises the sum of a constant part and a variable part and  its size depends on the employee’s reduced part of the working time, the minimum monthly wage for the month to which it is assigned and the month for which the allowance is being paid.

  1. The constant part of the partial-employment benefit is 23,27 percent of the minimum monthly wage (from 01-01-2022 it is EUR 730) and it contains EUR 169,87 (730 x 23,27 percent = EUR 169,87).
  2. The variable part depends on the average salary of employees. The average salary is calculated according to the salaries paid by that employer during the last 30 months before the calendar month that preceded the previous month from the first day of partial employment. The variable part of the partial-employment benefit is 38,79 percent of the average insured monthly income of the insured person.
  3. The amount of the partial-employment allowance shall be determined by recalculation of the amount of the fixed and variable components in proportion to the reduced working time.

Example:

The employer has applied for a partial work benefit from 15 February 2022. From this date, the working time of his employees is reduced by 50 percent. The average monthly insured income of the employee would be calculated on the basis of the insured income (wages) that the employee had with this employer during the period from 1 July 2019 to 31 December 2021 (for a period of 30 months which have elapsed before the end of the previous calendar month from the first day of partial work that has been set by the employer). For example, the average monthly wages of an employee are 1000 EUR. Then the amount of the partial work benefit per month (the sum of its fixed and variable components after recalculation in proportion to the reduced working time) would be 278.89 EUR ((169.87 EUR + 387.90 EUR) x 50%).

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The amount of the unemployment benefit used to calculate the part-time benefit might not exceed 58.18% of the average gross monthly earnings, published by the Department of Statistics of the Republic of Lithuania (including data on wages and salaries of individual companies), in the national economy for the previous calendar quarter from the first day of the part-time benefit (part-time benefit shall be calculated as the unemployment benefit in proportion to the employee's reduced number of working hours).


The maximum part - time benefit for persons who will be employed part - time in the 1st quarter of 2022 (01-01-2022 – 31-03-2022) will be based on the average monthly gross earnings in the 3rd quarter of 2021 in the national economy (including data on wages and salaries of individual companies).


For example, the maximum part-time benefit for insured persons who will be employed part-time in the 1st quarter of 2022 and whose working hours will be reduced by 50 percent, will comprise EUR 461,37 (EUR 1586 x 58.18% x 50% = EUR 461,37).

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  • If a person, who is receiving a partial work benefit, becomes temporarily incapacitated due to illness or injury and his entitlement to a sickness benefit under the Law on Sickness and Maternity Social Insurance or under the Law on Social Insurance of Accidents at Work and Occupational Diseases is established, the payment of a partial work benefit is suspended from the first day of temporary incapacity for work.
  • After the end of the temporary incapacity for work, and if the period for which partial work has been established has not yet ended, the payment of a partial work benefit is resumed. 
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  • The duration of the partial-employment benefit may not exceed 3 months. 
  • The partial work allowance shall be paid from the commencement of part-time work prescribed by the employer and shall be paid for the preceding month.
  • The payment of part-time work benefit shall be terminated upon termination of the employment relationship or upon the employer's annulment of the decision on the establishment of part-time work or upon the entry into force of the court order to initiate insolvency proceedings against the employer.
  • Upon the death of the beneficiary of this benefit, the unpaid amount will be paid to the successor. 
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The employer must submit the request to award the partial-employment benefit via the personal "Sodra" insurer’s account. These benefits will be awarded and paid by the Panevėžys department.

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Payment of the part-time benefit is terminated upon dismissal, entry into force of a court order to open insolvency proceedings against the employer or revocation of the decision on the determination of part-time work by the employer. The employer must inform Panevėžys branch of "Sodra" about the revocation of the decision on part-time work not later than 2 working days before the entry into force of this decision. Failure to inform in time will result in the overpaid amount being recovered from the employer.

 

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Update date: 2022-01-19
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