As of 1 July 2017, new Labour Code and new social insurance rates came into effect.
As of 1 July 2017, new Labour Code came into effect. These are the main amendments:
As of 1 July 2017, a1.6% unemployment social insurance rate shall apply to permanent employment contracts, and 3.2% – for fixed-term contracts. Until now, a single rate of 1.1% has been applied to all contracts.
As of 1 July 2017, pension social insurance rate decreased from 23.3% to 22.3%. However, new contributions of 0.5% to Long-term Employment Payments Fund came into effect.
Following the above, the total standard employer’s rates as of 1 July are:
Due to different social insurance rates, as of 1 June 2017, a new obligation to report fixed-term employment contracts came into force. By 31 July 2017, newly approved forms TDS will have to be submitted to the social insurance authorities reporting valid fixed-term employment contracts concluded by 30 June 2017. Newly concluded fixed-term employment contracts will need to be reported specifically in the form 1-SD.
© 2019 "KPMG Baltics", UAB, a Lithuanian limited liability company and a member firm of the KPMG network of independent members firms affiliated with KPMG International Cooperative ("KPMG International") a Swiss entity. All rights reserved.