Amendments to the Start-Up Subsidies facility:
- Arrears to the national insurance fund SODRA will not be checked until 31 December 2020.
- Starting from 1 April, compensation under the facility will be paid monthly. The compensation will be paid to the promoters no later than the fifth day of the second month following the reporting calendar month (e.g., the wages calculated in April, which must not be lower than the minimum wage, will be reimbursed by 5 June).
Please note that if companies declare a downtime, for which they are expected to be reimbursed by the Employment Service through an employer grant, there will be no subsidy payment under the Start-Up Subsidies facility.
The Lithuanian Ministry of Social Security and Labour is currently considering the possibility to extend the compensation period for project promoters by six months, which means that the compensation period for all the signed and currently implemented contracts will be 18 months instead of the 12 months previously planned. Such a change would remain in effect until the end of this year.
What are the benefits?
Borrowers of soft loans under the financial instrument Entrepreneurship Promotion Fund 2014–2020 financed by the European Social Fund (EPF2) are eligible for compensation of labour costs for every employee working under an employment contract who will be paid at least the minimum wage. This will make it easier for entrepreneurs to consolidate their market position, especially during the start-up phase.
What companies are eligible?
Micro or small companies and natural persons operating as sole proprietors or under a business certificate which meet the status of a SME under the SME Law and are EPF2 borrowers.
What is the maximum amount?
The fixed monthly rate of partial compensation of labour costs is set at EUR 498.48 and the minimum availability period is 12 months.
|EPF2 borrower||Eligible part of fixed rate|
A priority group is a group of persons encountering labour market or business organisation difficulties, i.e. unemployed persons registered with the territorial labour exchange for at least 6 months, disabled persons, persons under 29 years of age, persons above 54 years of age, women and those who create and/or will create “green” jobs.
In total, EUR 16,000,000 has been allocated for the implementation of these projects from the European Social Fund.
How does it work?
To take advantage of the instrument, an application must be submitted to INVEGA. Wages will be compensated monthly.
How is the amount of compensation calculated?
The amount of eligible costs per employee is calculated by multiplying the fixed rate (EUR 498.48) by the number of calendar months for which the amount of wages before taxes (gross) calculated for the employee was at least the minimum monthly wage and multiplying by the funding intensity of 75% or 50%.
For instance, if a company had 5 employees between July and September 2017 whose gross wages were EUR 380.00 but one employee was on an unpaid leave in September and his/her calculated wage was EUR 360.00, the amount of the employee wages eligible for compensation is calculated as follows: 498.48 x (4*3+1*2) = 6,978.72*0.5 (or *0.75 if the applicant belongs to the priority group).