A provisional Act on the recalculation and payment of social benefits for the period of 2010 - 2011 entered into force in January 2010. In accordance with this Act, a number of social security benefits decreased.

The reduction in pension and social benefits does not concern pensioners whose pension benefits exceed LTL 650. The number of such beneficiaries is 136 thousands, around 23 percent of all old-age pensioners in the country.

Pension benefits have been cut proportionally to their amounts. The old-age and survivors' pension benefits were cut by 5 percent on average and the State pension benefits, which are paid to citizens with merits, mothers with several children and scientists, were cut by 10 percent. The supplementary payment to reimburse the cost of assistance to sick persons has been reduced by 15 percent.

Pension benefits for working pensioners have been reduced on a prorata basis, depending on the individuals' wages, from 2.5 to 70 percent.

The maximum benefits for sick leave and professional rehabilitation became LTL 4,680 compared to LTL 7,250 before the introduction of the law.

As of July 2010, the maternity/paternity (child care) benefit will be cut by 10 percent, which means that 90 percent of the respective salary base will be paid until a child is 1 year old and 75 percent for the second year, compared to 85 percent which used to be paid for the second year. The maximum maternity/paternity benefit cannot exceed LTL 4,680, currently LTL 7,250.

Source: APSF (in Russian).

Implementation date: 01.2010