Lithuania to Close Social Insurance Loophole for Multi-Job Workers
The Lithuanian government has moved to strengthen the social safety net for thousands of employees who hold multiple part-time positions. A new legislative proposal, recently approved by the Cabinet and headed to the Seimas (Parliament), aims to ensure that workers earning less than the minimum wage across several employers still receive full social insurance guarantees.
Under the proposed changes, employers will be required to pay social insurance contributions based on a proportional share of the Minimum Monthly Wage (MMA), even if the employee’s actual earnings from that specific employer are lower. This move is designed to eliminate a long-standing loophole that allowed businesses to avoid paying the full “social insurance floor” by employing individuals for only a fraction of a full-time role.
Protecting Vulnerable Workers in the Fragmented Labor Market
Social Security and Labor Minister Jūratė Zailskienė emphasized that the reform is a matter of solidarity and fairness. The current system allows a situation where an individual working several jobs might still fail to accumulate the necessary contributions for a full pension or adequate sickness benefits because each individual employer only pays contributions on the small, actual amount earned.
“This would eliminate a loophole used by employers to avoid the minimum social insurance ‘floor’,” Zailskienė stated. By mandating that contributions are paid at least from the minimum wage level—split proportionally among all of a person’s employers—the state ensures that the worker secures at least the baseline social guarantees. Data suggests this change will directly impact more than 8,000 workers currently operating in this fragmented employment state.
Impact on Specific Employment Sectors
Statistics from the social insurance fund, Sodra, highlight that the issue of multi-job low earners is concentrated in specific industries. As of early 2025, over 5,000 individuals held two jobs without reaching the minimum wage threshold, while nearly 2,000 held three. In extreme cases, individuals were found to be working for as many as twelve different employers simultaneously.
The most affected groups include:
* Service and Maintenance: Cleaners, hotel maids, and assistants make up 24.4% of those affected.
* Administration and Management: Surprisingly, 23.6% of those earning below the minimum wage across multiple roles are listed as managers or administrative heads, often in small-scale or shell-like business structures.
* Marketing and Sales: Advertising and sales specialists account for approximately 9.5% of the group.
By closing the loophole, the government aims to prevent “formal” employment splitting, where a worker performing essentially the same function is hired by multiple related entities to reduce the total tax burden on the employers.
Proportional Contribution Rules and Implementation
The new system introduces a specific calculation method to ensure fairness among employers. Sodra will be responsible for aggregating the data and calculating the additional contributions required from each employer.
The obligation is divided based on the number of employers. For example, if the Minimum Monthly Wage is set at €1,153:
* Two employers: Each is responsible for contributions on at least €576.50.
* Three employers: Each is responsible for contributions on at least €384.33.
The system also accounts for “overpayments.” If one employer pays significantly more than their proportional share, that excess is credited toward the total minimum requirement, potentially reducing the burden on the other employers. Furthermore, the rules will factor in the actual number of days worked to ensure that employers are not penalized for periods when an employee was on sick leave or had not yet started their contract.
Legislative Timeline and Exceptions
While the government has signaled its strong support, the bill must still pass through the Seimas to become law. The only proposed exception to these stricter rules involves employers who hire participants of specific employment programs on fixed-term contracts; these employers will continue to pay contributions based only on the actual wages paid.
For the thousands of cleaners, assistants, and specialists currently caught in the gap between multiple part-time roles, this reform represents a significant shift toward long-term financial security, ensuring that their current labor translates into future pension rights and immediate social protection.
Source: BNS
