VILNIUS — The new compulsory social insurance tax for the social security fund, SoDra, has not been paid by around 200,000 Lithuanians meaning they have no health coverage.
The tax, which was introduced at the start of this year, says that everyone has to pay for SoDra, even if they aren’t officially working. Previously the social security contribution was rolled in together with income tax, but since Jan. 1, the two were unbundled. SoDra is the fund that ensures Lithuanians have access to health care no matter their income level.
The new compulsory tax on [private_supervisor]SoDra is aimed at those working in the shadow economy and those working abroad who have not declared their status as an emigrant. If a worker is not registered with the Labor Exchange, the country’s unemployment body or registered as an emigrant worker, then they must pay 800 litai (€232) a year in taxes.
Seimas speaker Irena Degutienė said that the tax hits illegal workers effectively. There are people in Lithuania who do not claim unemployment benefits and do not officially work either.
“When talking about the unemployed who say that they have no income, a logical question arises: how do they live? Is there a shadow work unseen with money that is somehow illegal?” Degutienė said. “If the person is not registered with the Labor Exchange, he does not even have unemployment benefits. Then the question arises – what is the money he used to live?”
The opposition slammed the new tax saying that it is illegal.
“At the moment compulsory health insurance contributions, we believe, have no legal basis. If the laws are properly examined and have their applications considered they could not be presented to clarify for the Lithuanian people. We need to create more and more working groups to explore opportunities for the individual populations of exceptions and try to find ways to justify their actions,” Social Democrat Algirdas Butkevičius said at a press conference Friday.
Prime Minister Andrius Kubilius said he was worried for the people who have not paid for the social insurance because they would be in trouble in the case of an accident.
Emigrant workers are encouraged to declare their status to the government so they are not counted as living in Lithuania. [/private_supervisor] [private_subscription 1 month]SoDra is aimed at those working in the shadow economy and those working abroad who have not declared their status as an emigrant. If a worker is not registered with the Labor Exchange, the country’s unemployment body or registered as an emigrant worker, then they must pay 800 litai (€232) a year in taxes.
Seimas speaker Irena Degutienė said that the tax hits illegal workers effectively. There are people in Lithuania who do not claim unemployment benefits and do not officially work either.
“When talking about the unemployed who say that they have no income, a logical question arises: how do they live? Is there a shadow work unseen with money that is somehow illegal?” Degutienė said. “If the person is not registered with the Labor Exchange, he does not even have unemployment benefits. Then the question arises – what is the money he used to live?”
The opposition slammed the new tax saying that it is illegal.
“At the moment compulsory health insurance contributions, we believe, have no legal basis. If the laws are properly examined and have their applications considered they could not be presented to clarify for the Lithuanian people. We need to create more and more working groups to explore opportunities for the individual populations of exceptions and try to find ways to justify their actions,” Social Democrat Algirdas Butkevičius said at a press conference Friday.
Prime Minister Andrius Kubilius said he was worried for the people who have not paid for the social insurance because they would be in trouble in the case of an accident.
Emigrant workers are encouraged to declare their status to the government so they are not counted as living in Lithuania. [/private_subscription 1 month] [private_subscription 4 months]SoDra is aimed at those working in the shadow economy and those working abroad who have not declared their status as an emigrant. If a worker is not registered with the Labor Exchange, the country’s unemployment body or registered as an emigrant worker, then they must pay 800 litai (€232) a year in taxes.
Seimas speaker Irena Degutienė said that the tax hits illegal workers effectively. There are people in Lithuania who do not claim unemployment benefits and do not officially work either.
“When talking about the unemployed who say that they have no income, a logical question arises: how do they live? Is there a shadow work unseen with money that is somehow illegal?” Degutienė said. “If the person is not registered with the Labor Exchange, he does not even have unemployment benefits. Then the question arises – what is the money he used to live?”
The opposition slammed the new tax saying that it is illegal.
“At the moment compulsory health insurance contributions, we believe, have no legal basis. If the laws are properly examined and have their applications considered they could not be presented to clarify for the Lithuanian people. We need to create more and more working groups to explore opportunities for the individual populations of exceptions and try to find ways to justify their actions,” Social Democrat Algirdas Butkevičius said at a press conference Friday.
Prime Minister Andrius Kubilius said he was worried for the people who have not paid for the social insurance because they would be in trouble in the case of an accident.
Emigrant workers are encouraged to declare their status to the government so they are not counted as living in Lithuania. [/private_subscription 4 months] [private_subscription 1 year]SoDra is aimed at those working in the shadow economy and those working abroad who have not declared their status as an emigrant. If a worker is not registered with the Labor Exchange, the country’s unemployment body or registered as an emigrant worker, then they must pay 800 litai (€232) a year in taxes.
Seimas speaker Irena Degutienė said that the tax hits illegal workers effectively. There are people in Lithuania who do not claim unemployment benefits and do not officially work either.
“When talking about the unemployed who say that they have no income, a logical question arises: how do they live? Is there a shadow work unseen with money that is somehow illegal?” Degutienė said. “If the person is not registered with the Labor Exchange, he does not even have unemployment benefits. Then the question arises – what is the money he used to live?”
The opposition slammed the new tax saying that it is illegal.
“At the moment compulsory health insurance contributions, we believe, have no legal basis. If the laws are properly examined and have their applications considered they could not be presented to clarify for the Lithuanian people. We need to create more and more working groups to explore opportunities for the individual populations of exceptions and try to find ways to justify their actions,” Social Democrat Algirdas Butkevičius said at a press conference Friday.
Prime Minister Andrius Kubilius said he was worried for the people who have not paid for the social insurance because they would be in trouble in the case of an accident.
Emigrant workers are encouraged to declare their status to the government so they are not counted as living in Lithuania. [/private_subscription 1 year]
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