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    Legal Updates

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    Law Update (January 2003)
    Lideika, Petrauskas, Valiūnas & Partners
    January, 2003
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    Social and health insurance

          On 10 December 2002 the Seimas adopted Law No IX-1245 on Amending and Supplementing Articles 2, 10, 28, 29, 34, 35, 38, 39, 40, 45, 49, 54, 56 of the Law on State Social Insurance Pensions and Supplementing the Law with Articles 551, 552, 553, 554, 555. The Law approximates the provisions of the Law on State Social Insurance Pensions with the Civil Code and the provisions of the Law on Public Procurement and the Law on Public Service. Besides, it unifies the conditions of conferring disability status to the persons who became disabled until and after the age of 23, provides the possibility to receive the widower’s pensions for the guardians growing diseased person’s children from 14 to 18 years of age etc.

          On 3 December 2002 the Seimas adopted Law No IX-1215 on Reform of the Pension System. The Law provides for the main principles relating the social insurance pension systems and the accumulative part of pensions.

          On 3 December 2002 the Seimas adopted Law No IX-1219 on Amendment of the Law on Health Insurance. The amendment of the Law served for regulation of the compulsory social insurance of foreigners temporarily residing and employed in Lithuania, taking into account the principle of non-discrimination of foreigners under the EU law. Also, it is provided that partnerships must pay for their members and individual (personal) enterprises must pay for their owners each month compulsory social insurance contributions amounting to 2 percent of the country’s average monthly wages for the one but last quarter announced by the Statistics Department under the Government of the Republic of Lithuania. Individuals engaged in individual activities as defined in the Law on Income Tax of Residents, including persons receiving income from royalties and/or under copyright agreements, must pay compulsory health insurance contributions accounting for 30 percent from the calculated amount of the inhabitant’s income tax, however not less per month than ½ of the annual state budget contribution for the state insured persons during a current taxable year.

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