The proposed one-off compensation to cover part of the relocation expenses for a worker coming to Lithuania would amount to about 3 thousand euros (4.1 MMW). Companies would be reimbursed for expenses of searching for highly qualified staff abroad - up to 5.2 thousand euros (7.1 MMW). In the near future, the prepared amendments to the Law on Employment will be considered by the Government. They would enter into force after the approval thereof by the Seimas.
'Recently, there is a shortage of highly qualified talent in Lithuania. This hampers the growth of the country’s economy and hinders the attraction of new investors. We are currently under unprecedented pressure due to the war in Ukraine, the situation in Belarus and China. Therefore, we have to offer atypical support measures to Lithuania, which have already proved to be beneficial in other countries', - says Aušrinė Armonaitė, Minister of Economy and Innovation.
According to the Minister, the proposed solution would reduce tensions in connection with shortage in the labour market of professionals in high value-added sectors. The set of measures would help businesses seeking to relocate to Lithuania or to attract new highly skilled workers in niche areas. Given the situation in Ukraine, it is proposed to facilitate conditions for people fleeing the war.
‘Lithuania is ready to provide a safe and stable environment to all international globally thinking companies, that oppose acts of war, and to their employees’, – says A. Armonaitė.
Amendments to the Law on Employment are aimed at attracting not only highly qualified foreigners, but also highly qualified Lithuanian citizens, who have emigrated from the country, that is, all talents from abroad, who have not been residents of Lithuania and taxpayers in our country for more than 5 years. Matching of labour supply and demand is expected to encourage foreign investors to transfer their production or service activities to Lithuania, and thus reduce the relocation expenses incurred by an employee, and for the employer - expenses of searching for a highly qualified professional.
Only relocation of workers, that are currently in short supply in Lithuania and whose job function is included in the list of high added value professions, which are in short supply on the labour market, will be compensated. The person will have to be employed for an indefinite period. His average monthly salary for 6 months from the start of employment will have to be at least 4.1 MMW. The benefit will be paid to a person who has worked for 6 months. A financial incentive for a company to cover the expenses of search for such professional will be paid 12 months after the beginning of the contract.
In order to help refugees from Ukraine, it is proposed that they be currently given facilitated conditions. It is proposed that Ukrainians should not be subject to the requirements regarding the list of professions, which are in short supply, also regarding not being the residents of Lithuania for at least the last 5 years, and to allow to set the bar of gross earnings to lower level - 2.4 MMW - about 1,750 euros. It is estimated that this initiative would bring more revenue than expenditure to the state. It is estimated that a professional, who earns at least 4.1 MMW, pays about 10.5 thousand euros in taxes per year.
‘As many as 8 out of 10 foreign investors, that have chosen Lithuania, say that talent supply is an essential condition for the entry of investors to the country. In 2016-2020, investors, who have not chosen Lithuania due to lack of talent, did not create 5,810 well-paid jobs in the country’, - says A. Armonaitė.
Due to the unstable situation in Belarus and the war in Ukraine, some of these foreign companies have begun to consider relocating their business to safer countries, or have already done so. Lithuania is competing with neighbouring countries in terms of the relocation of those companies. A set of incentives for arriving highly qualified foreign professionals would make Lithuania more attractive country for relocation.
