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
The employer shall apply to the Utena 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. Utena Branch of "Sodra" shall take a decision on granting a part-time benefit after receiving the conclusion of the Board.
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.
- The constant part of the partial-employment benefit is 23,27 percent of the minimum monthly wage (from 01-01-2021 it is EUR 642) and it contains EUR 149,39 (642 x 23,27 percent = EUR 149,39).
- The variable part depends on the average salary of employees and the amount of shortened time. 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.
The employer submitted a request to award the partial-employment benefit from 01-01-2021. It indicated that its employee work time was reduced by 50 percent. The average insured income per employee will be calculated from the insured income paid during the period between 01/06/2018 and 30/11/2020 (30 months). Let's say the average monthly salary per employee is EUR 1000.
- The constant part of the partial-employment benefit is EUR 149,39 (642 x 0,2327).
- The variable part of the partial-employment benefit is EUR 387,90 (1000 x 0,3879).
After recalculating the sum of the constant part of the partial-employment benefit (EUR 149,39) and the variable part of the partial-employment benefit (EUR 387,90) in proportion to the reduced work time (50 percent), the resulting partial-employment benefit amount is EUR 268,65.
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 2nd quarter of 2021 (01-04-2021 – 30-06-2021) will be based on the average monthly gross earnings in the 4th quarter of 2020 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 2nd quarter of 2021 and whose working hours will be reduced by 50 percent, will comprise EUR 439,93 (EUR 1512,30 x 58.18% x 50% = EUR 439,93).
If the beneficiary receives another social security benefit. It could be:
- State social insurance, social assistance or state pension (excluding the pensions for widows, orphans and losing the primary carer, compensations for special working conditions, social assistance pensions received for other persons).
- Periodic compensation for lost working capacity due to accidents at work and occupational diseases.
In these cases, the difference between the partial job allowance and the amount of pensions, compensation or benefits received has been adjusted in proportion to the reduced working time.
- 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.
If a person receiving part-time benefit becomes temporarily unable to work due to illness or injury and is entitled to sickness benefit under the Law on Sickness and Maternity Social Insurance, or the Law on Social Insurance of Occupational Accidents or Occupational Diseases, the payment of the part-time benefit will be suspended from the first day of sick leave.
After the expiry of sick leave and if the period of a part-time job has not yet expired, the payment of the part-time benefit will be resumed.