If the employer declares downtime during the quarantine and the extreme situation, employees should be paid no less than the minimum monthly salary, which will be partially offset by the state. The employers can apply for subsidies to Employment Services from the 5th of April.
Social enterprises, disabled social enterprises, non-governmental organizations and associations can apply for subsidies too.
Who is eligible for the subsidy?
Employers who meet these conditions:
1) whose legal form is not a budgetary institution;
2) who do not have a file for bankruptcy or are not liquidated or are not in the liquidation process;
3) whose manager or other responsible person did not have a fine for violations specified in articles 56,57,58 of Employment law during the last year or an administrative penalty for illegal work or an administrative penalty for violations of labour law, occupational safety and health norms, the concealment of an accident at work, violations for payroll calculation, working time accounting, working conditions for temporary employees and violations for commercial and economic activities;
4) who due to extreme situation and quarantine, announced by the Government of the Republic of Lithuania, declared downtime and according item 2 of paragraph 1 of article 47 of the Labour Code of the Republic of Lithuania maintain jobs for employees.
Amount of subsidy and duration of payment
The amount of the subsidy is calculated as a percentage of the salary calculated for the downtime employee, which may not be higher than the salary specified in the employee’s employment contract until the declared emergency situation and the day of quarantine. The employer decides on the amount of the subsidy:
• 70% of the employee’s salary, but not more than EUR 910.5 gross (or 1.5 of minimum salary – MMA).
• 90% of the employee’s salary, but not more than EUR 607 gross (or 1 MMA).
If, in the case specified in Item 2 of Paragraph 1 of Article 47 of the Labour Code, the employee’s downtime is declared as part-time, the amount of the subsidy shall be calculated in proportion to the employee’s downtime declared by the employer. The subsidy is paid for as long as the emergency situation and quarantine continues.
Where and how to apply for a subsidy?
Employers should contact the Customer Service Department of the Employment Service, depending on the territory in which their registered offices are located.
Employers may submit the specified documents (see below) to the Customer Service Departments by e-mail, signed electronically or by post to the nearest Customer Service Department in the territory where the companies are registered.
Documents can be signed online for free at the following addresses:
- https://www.gosign.lt/en/documentupload/sign (only PDF documents under 6 MB allowed)
- https://app.dokobit.com/login (free until April 30)
An electronic signature (e–signature) can be obtained as:
- mobile e-signature (recommended) that does not require any special equipment. A smartphone or other smart mobile device is sufficient;
- stationary e-signature on a USB stick or smart card. A computer is required to use e-signature on a USB storage device; a computer and a smart card reader are required for the signature on the smart card.
How to obtain e-signature?
1. Anyone wishing to obtain a mobile electronic signature must contact their mobile service provider.
Largest mobile phone network operators:
1.1. Telia – https://www.telia.lt/m-parasas
1.2. Tele2 – https://tele2.lt/privatiems/ismanosios-paslaugos/mobilusis-parasas
1.3. Bitė – https://www.bite.lt/paslaugos/mobilusis-parasas
Small mobile phone network operators:
1.4. Eurocom – https://www.eurocom.lt/lt/p/piaskinis-meniu/verslui/v-naudinga-informacija/elektroninis-parasas
1.5. CSC Telecom – https://csc.lt/verslui/telefonija/mobilusis-rysys/mokejimo-planai/?cn-reloaded=1
1.6. Mediafon – https://mediafon.tech/?l=en
Note: There is no information about Teledema e-signature services.
- in order to obtain a stationary e-signature, you must apply to the Centre of Registers –https://www.elektroninis.lt/en.
It should be noted that unsigned or incorrectly signed documents will be returned to the employer (who submitted them) for correction and will only be processed if duly signed (with a regular or electronic signature).
If you have any questions, please contact the Customer Service Department. Contacts can be found here.
What kind of document and in what terms should be submitted?
Applying for the subsidy for thefirst time,appropriate document should be submitted (until the end of April; if downtime is declared from April, documents could be submitted also in May):
a) Completed and signed Proposal to implement the supported employment measure regarding the wage subsidy due to the Article 41 part 2 of the Law on Employment.
Note. Submitting electronic documents, completed Excel application form together with additional documents should be singed by E-signature and together with additional documents delivered to Employment Services in one directory.
c)Copies of the documents, confirming the declaration of downtime.
Applying for subsidy continuously in next months, the documents referred in points b and c and supporting documents for the payments to each employee of the salary for the previous month for which the wage subsidy was paid should be submitted.Documents should be submitted no later than the 15th day of the following month.
IMPORTANT. In cases where the employer applies for the subsidies for salaries during the downtime only once, as well as in cases where the payment of the subsidy for the salary is terminated, the employer must submit the salary bill to the Employment Service no later than 30 calendar days from the date of receipt of the salary subsidy supporting documents for the payment to each employee of the previous calendar month for which the salary subsidy was paid. The liability of an employer who fails to submit the specified documents within the prescribed time limit is established in Article 61 of the Law on Employment. The subsidy paid will be recovered in accordance with the procedure established by law.
What are the obligations of the employer when receiving the subsidy and what are the possible consequences of non-compliance?
- Employers who have been paid a subsidy must keep at least 50 percent of their job vacancies for at least 3 months after the pay subsidy ends.
- If the State Labour Inspectorate (VDI) establishes that an employee whose employer has been granted and paid a salary subsidy performs work functions during the downtime announced in the case specified in Article 47 (1) (2) of the Labour Code, the employer must repay the full amount of the salary subsidy paid to him before the decision was taken, in respect of the employee of whom the said violation was established.
When is the payment of the subsidy terminated?
- When the Government of the Republic of Lithuania revokes an emergency situation, quarantine or the deadline for declaring at least one of them expires;
- Upon the entry into force of a Court order to initiate bankruptcy proceedings against the beneficiary or after the creditors’ meeting has passed a resolution to implement bankruptcy proceedings out of Court;
- After registering the status of the company in liquidation in the Register of Legal Entities;
- If State Labour Inspectorate (VDI) finds out that an employee whose employer has been granted and paid a salary subsidy, performs work functions during the downtime announced to him in the case specified in Paragraph 1 (2) of Article 47 of the Labour Code of the Republic of Lithuania.
Both employers and social enterprises participating in apprenticeships, supported employment, job creation measures and implementation of local employment initiative projects are eligible for the subsidy.
It should be noted that after the decision to grant a wage subsidy to employers participating in apprenticeship or supported employment measures is made in accordance with the procedure established in Paragraph 21 of Article 41 of the Employment Law, the payment of salary subsidies under the general apprenticeship or supported employment procedure will be suspended.