Accounting, Payroll, Tax & Legal since 1989

State aid for salary in Lithuania

Leinonen Lithuania would like to inform you that the quarantine is currently valid till 16 June 2020 in Lithuania and it will not be extended.

Due to this, we have prepared a summary of information which may be relevant to your company in this case.

If you have additional questions, do not hesitate to contact us by the contacts below.

Niina Riihijarvi                              

Managing Director

niina.riihijarvi@leinonen.lt


Evelina Dausėnaitė

Head of Tax & Legal

evelina.dausenaite@leinonen.lt


Živilė Mikolaitienė

Senior Legal Advisor | Compliance Officer

zivile.mikolaitiene@leinonen.lt 





State Aid for salary in Lithuania

SUBSIDIES FOR THE SALARY AFTER THE IDLE TIME OR QUARANTINE 

New State Aid measure for salary compensation will be applied for no longer than 6 (six) months until 31 December 2020. Subsidies (compensations) for the employees’ salary will be paid for the companies falling under one of three categories. Subsidies for the salary will be paid monthly for the previous period.    

 

In the table below you will find detailed information on subsidies payment:

EMPLOYER HAS THE RIGHT TO THE SUBSIDY IF:

SUBSIDY WILL BE PAID FOR:

WHEN THIS SUBSIDY CAN BE PAID?:

 

 

 

Announced Idle Time during the quarantine and requested subsidies.

All employees which were on the Idle Time during the quarantine.

· After recall of Idle Time starting (from 15 May 2020)

·   After the quarantine (from 17 June 2020)

 

 

 

 

Are included into the Tax Authority List of companies affected by COVID-19.

·  10 employees if not more than 20 employees are working at the company.

·  50% of the employees when 21 or more employees are working at the company.

From 15 May 2020

 

 

 

Employed supported unemployed persons sent by Employment Service. 

Additionally supported employees:

· disabled persons;

· unqualified persons;

· young unemployed persons until 29 years old;

· long lasting unemployed persons;

· refuges or protected persons;

From 15 May 2020

Please note that subsidies will be paid to the employer.

 

AMOUNTS OF SUBSIDIES FOR PAID SALARY

Above stated employers can receive subsidies for paid salary as follows:

 

During first and second months of subsidy:

(i)   100% calculated amount but not more than minimum monthly salary (EUR 607 gross).

(ii) Under the employer’s choice – 70% calculated amounts but not more than two minimum monthly salary (i.e. EUR 1214 gross) or 100% calculated amounts but not more than minimum monthly salary (EUR 607 gross), if employer is complying with the list of business activities orientated to new technology production, knowledge intensive services etc (hereinafter – List of new technologies production).

(iii) 100% calculated amounts but not more 0,5 of minimum monthly salary (i.e. 303,5 gross) when fixed term or seasonal employment contract is concluded.

 

During third and fourth months of subsidy:

(i)    50% calculated amounts but not more than minimum monthly salary (EUR 607 gross).

(ii)   50% calculated amounts but not more than two minimum monthly salaries (EUR 1214 gross), if employer is complying with the List of new technologies production.

(iii)  50% calculated amounts but not more 0,5 of minimum monthly salary (i.e. 303,5 gross) when fixed term or seasonal employment contract is concluded.

 

During fifth and sixth months of subsidy:

(i)   30% calculated amounts but not more than minimum monthly salary (EUR 607 gross).

(ii)  30% calculated amounts but not more than two minimum monthly salaries (EUR 1214 gross), if employer is complying with the List of new technologies production.

(iii) 30% calculated amounts but not more 0,5 of minimum monthly salary (i.e. 303,5 gross) when fixed term or seasonal employment contract is concluded.

 

After the end of subsidy and for the period of three months employer shall not lay of 50% of the employees for whom subsidies were paid. It is important to mention that obligation not to lay of employees is applied only for the termination under the employer’s initiative without any fault of the employee.

 

DOCUMENTS FOR THE APPLICATION TO RECEIVE SUBSIDY 

Following documents shall be filled when applying for the salary subsidy first time:

 

-Proposal (Form);

-List of Employees for whom subsidies will be paid (Form);

-Declaration on implementation of activities under the List of new technologies production (Form)This form is filled only by the employers complying with the List of new technologies production    (Find the List here).

 

In addition, documents grounding made salary payments shall be provided as well (e.g. Extract from the bank, approved bank transfer copy etc.).

 

Following months (until 15th of next month) employer provides only documents grounding paid salary to the employees.

 

Subsidies for the salary will be paid monthly for the previous period.    

 

Leinonen Team will be happy to help you when applying for this subsidy.



15.06.20


Author:   

linkedin icon image logo
Živilė Mikolaitienė

Živilė Mikolaitienė

Senior Legal Advisor

Add Profession Translation

Mobile: +370 656 73318

Email: zivile.mikolaitiene(at)leinonen.lt

Latest articles

26

Mar

Hoping for the best, preparing for the worst...

2

Jul

Business in Lithuania - Important notice regarding tax...

1

Jul

Changes in non-taxable income in Lithuania

Contact

Email again:
Services