Insurance

Social Security

 

Social security and mandatory health insurance (more information about health insurance-below) contributions are paid in relation to gross employment income by both the employer and the employee. There is no income cap for social security contributions on employment income. Specific rules are established for self-employed individuals with a cap for contributions applied.

For employees the social security contribution rates payable in 2017 are as follows:

  • Employer’s rate: 30,98% (30.48% since 1 July 2017);
  • Employee’s rate: 9%/11% (3% social insurance and 6% health insurance. An additional 2% is paid by employees participating in certain pension accumulation plans, which is withheld by the employer);
  • Payments to the Guarantee Fund: 0.2 % (0.7% since 1 July 2017).

 

© 2017 “KPMG Baltics”, UAB, a Lithuanian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”) a Swiss entity. All rights reserved.

 

Compulsory Health Insurance

 

In Lithuania, as in many European countries, compulsory health insurance is a norm. That is, permanent residents of Lithuania are required to pay compulsory health insurance contributions.

The state guarantees the insured individuals free health care provisions in state and municipal health care institutions (except where certain medical tests or procedures are not paid from the State Patient Fund budget) and private institutions that have concluded agreements with the Territorial Patient Fund. The individuals not covered by compulsory health insurance are required to pay for health care services themselves.

An indicative list of basic health services is available on this website. There is no general price list for paid services in public health – each medical treatment facility sets their own prices in accordance with a basic price list.

The groups of the individuals covered by compulsory health insurance in Lithuania are the following:

  • People who pay compulsory health insurance contributions themselves (those working under business licenses, self-employment certificates and other individuals who are not insured by the employer or the state);
  • People whose compulsory health contributions are paid for by their employers (those working under employment contracts, civil servants, and individuals working under royalty agreements);
  • People insured by the state (individuals registered with the Labour Exchange, having a temporary permit to reside in the Republic of Lithuania, if they did not work in Lithuania for six months prior to their registration with the Labour Exchange), women on pregnancy and maternity leave, a single parent raising a child up to the age of eight, as well as a single parent raising two underage children, the retired and beneficiaries of relief compensation, persons up to the age of 18, schoolchildren, full-time students, individuals receiving social assistance, etc.);
  • Other people, the information on whom is available on the State Patient Fund

Foreign nationals (both from the European Union and third countries) can belong to any one of these specific categories, if they work and are insured by the employer, are self-insured or are insured by the state. Nationality has no effect on compulsory health insurance whatsoever. Any person whose place of residence is declared as Lithuania may fall under one of these categories. It means that any person covered by compulsory health insurance receives free health services.

 

Find out more about compulsory health insurance here.

Source: Migration Information Center “Renkuosi Lietuvą

© International Organization for Migration (IOM)