For the self-employed: how to get a subsidy during the period of quarantine?

For the self-employed: how to get a subsidy during the period of quarantine?

During emergencies and quarantine, the state provides support to the self-employed. Applications for benefits are available to the self-employed from 5 April.

We invite you to get acquainted with the application procedure prepared in accordance with the draft Law on Employment, which is adopted by the Seimas in 2020. April 7.

Who is entitled to the benefit?

The right to receive the benefit belongs to self-employed defined in Paragraph 9 of Article 2 of the Law on State Social Insurance of the Republic of Lithuania:

• individual business owners;
• members of small partnership;
• full members of econimic partnerships and limited partnerships;
• persons engaged in individual activities as defined in the Law on Personal Income Tax of the Republic of Lithuania (lawyers, assistant lawyers, notaries, bailiffs, persons with business licenses and other persons);
• natural persons engaged in individual agricultural activity, when the economic size of the agricultural holding or farm according to the calculations performed by the State Enterprise Agricultural Information and Rural Business Center for the tax period of the previous year from 1st of January until 31st of December is no less than 4 economic size units;
• family participants as defined in the Law on Families of the Republic of Lithuania;
• persons receiving income under copyright agreements or income from sports or performer activities;
• holders of business licenses (excluding business licenses for the rental of premises).

Self-employed persons must meet all of the following conditions:

1) their independent activities have been registered for a period of at least 3 months within 12 months and have not been deregistered before the date of declaration of the emergency situation and quarantine announced by the Government of the Republic of Lithuania;

2) during the emergency situation and quarantine announced by the Government of the Republic of Lithuania, does not work under an employment contract or does not have legal relations equivalent to employment relations and does not receive income related to employment relations;

3) in the case of a legal person, does not have the status of a company in liquidation or bankruptcy.

 One benefit is granted and paid to one self-employed person, regardless of the number of self-employed activities.

The benefit will also be available to persons exempt from social security contributions: pensioners, the disabled who have started their activity for the first time.

Where and how to apply for the benefit?

You must apply to the Employment Services for a benefit by submitting a completed application form for a self-employed benefit. The application can be submitted to the Employment Services in the following ways:

1. A self-employed person who is not registered with the Employment Services before the day of submitting the application may submit the application electronically using the electronic service “Registration with the Employment Service” available on the Employment Services website by selecting the active link Register with the Employment Service.
2. Prior to the date of application, a self-employed person registered with the Employment Service may submit an application by contacting his / her specialist, who will provide information on how to submit an application. Applications will be available for:

• from the e-mail specified in the registration card of the person seeking his / her job, by sending a completed application to the employment service department performing the customer service functions in which the person is registered;
• by sending a completed and signed application by post to the employment service department performing the customer service functions in which the person is registered.

Contact details for customer service departments can be found here.

An application for a benefit for a self-employed person can be submitted only once.

When and at what rate is the benefit granted?

Within 3 working days, the Employment Service will assess whether the applicant meets all the conditions specified in Paragraph 1 of Article 51 of the Law on Employment of the Republic of Lithuania and will make a decision to grant or not to grant a benefit to a self-employed person.

The amount of the benefit for self-employed persons is equal to one of the minimum consumption needs of the current year – 257 Eur. If the term of the emergency situation and quarantine announced by the Government of the Republic of Lithuania is shorter than a calendar month, the amount of benefits paid to the self-employed person for that month shall be reduced proportionately.

Who grants and who pays the benefit?

The decision on granting the benefit is made by the Head of the Client Service Division of the Employment Services, paid by the Board of the State Social Insurance Fund or the administrative institution appointed by it of the State Social Insurance Fund.

The benefit can be recovered if it is established that it has been paid illegally because the person has provided incorrect information when applying for the benefits. Recovery procedures are carried out by the Board of the State Social Insurance Fund.

When the payment of the benefit is stopped?

Payment of the benefit shall be terminated within 1 working day if at least one of the following grounds arises:

1) the Government of the Republic of Lithuania revokes the emergency situation and quarantine or the term for declaration of at least one of them expires;

2) the person no longer meets at least one of the conditions established in Paragraph 1 of Article 51 of the Law on Employment for granting and paying the benefit to a self-employed person.