The delay will allow the social partners, the public, and all the parties concerned to once again submit their proposals on the new Labour Code and other laws in the social model package. The proposals will form the basis for the necessary legislative amendments that will be introduced with a view to striking the right balance between the interests of employers and employees and meeting the expectations of the Lithuanian citizens. As Tomas Tomilinas, one of the initiators of the proposal, previously noted, structural reform will be carried on while maintaining the main objective of liberalising the labour relations.
The Law on State Social Insurance, which accompanies the social model package, was amended to discard the ceiling previously established for SoDra social security contributions. The amendments also do away with the commitment to reduce the employer’s contribution to SoDra by one percentage point and with the need to subsequently decide on this on an annual basis. In accordance with the adopted provisions, 1 July 2017 will see the launch of the process of reducing, by one percentage point, the rate of the social insurance contribution used to finance the main part of the retirement pension. The loss of revenue by the Social Insurance Fund will be covered from the state budget.
