90 thousand unemployed empties Sodra’s budget: 54 million LTL of euro benefits may be missing

Last year, the budget for unemployment benefit was 29 million. a € 63 million “hole”, although budget planning was expected to raise € 63 million. calculated by the Ministry of Labor and Social Security (SADM). Sodra provides slightly different data: Last year, the unemployed were left without 23 million. euros.

And this year another 54 million euros of unemployment benefits are expected to be missing.

“The number of people receiving social security unemployment benefits has increased due to the pandemic. 2021 January. The number of beneficiaries of social security unemployment benefits amounted to 91 thousand. Compared with 2020 In January, the number of beneficiaries of unemployment benefits was around 24 thousand more (36%) ”, explains the comment of the ministry.

Taking into account the increase in the monthly minimum wage, a total of 312.3 million LTL is expected to be earmarked for social security unemployment benefits this year. EUR and is 7.3 million. Eur or 2.4 percent. more than 2020 Will these amounts be enough?

“According to the Economic Development Scenario, the unemployment rate is projected to decline from 8.8 percent. 2020 to 8.2 percent. 2021 So far, the revenue indicators collected by the Sodra budget show no sign of concern. Revenues are collected without a significant gap in the plan, “commented SADM.

However, the ministry is suspicious of the proposals that are being made and the possibilities of significantly expanding the circle of beneficiaries of social security unemployment benefits.

The Ministry of Social Affairs plans to propose changes in the legal regulation of the renewal of the payment of unemployment benefits.

“It is proposed to provide an additional possibility for residents of the country who have lost their jobs to resume payment of unemployment benefit, which has been rescinded for certain reasons,” commented the comment.

90 thousand the population receives benefits

According to Sodra, after the end of the first quarantine, the number of beneficiaries of social security unemployment benefits increased one and a half times and stabilized; since August it has slightly exceeded 90 thousand each month, but it is no longer growing.

In January, there were 90.7 thousand beneficiaries. in February – 91.5 thousand. That is 36 percent. higher figures than a year ago. And the amount of unemployment benefits they were paid in January and February was 48 percent higher than a year ago.

“We do not have data on contributions for February. According to preliminary data, in January social security benefits for unemployment exceeded this type of social security contributions by 12.9 million,” Jarmalis explained.

According to him, the balance of income and social security benefits for unemployment has turned negative since last April, when the number of beneficiaries of unemployment benefits began to grow due to the pandemic and quarantine.

“The result of January this year was influenced by the fact that the increase in median income last year also increased the amount of social security unemployment benefits and the fact that in January Sodra usually collects less contributions to the social security; this seasonal trend is every year. ” explains S. Jarmalis.

Sodra has 600 million. reserve, which has not decreased so far

In case of emergencies and with the permission of the Government, Sodra can use the reserve, which has accumulated close to 600 million. It must be replenished, as last year Sodra’s budget balance was positive, reported Saulius Jarmalis, Head of the Sodra Communication Department.

Sodra has not started using the reserve. Last year, despite two quarantines, which led to a decrease in contributions and an increase in the amount of benefits was positive, ”explains S. Jarmalis.

The “less” experienced by Sodra in January is seasonal

In January, Sodra’s total budget was negative: 342.6 million. 418.9 million euros were spent. The difference is 76.3 million euros. euros.

All budgets were in the red: pension benefits amounted to almost 35 million. exceeded expenses by 18 million euros. 4 million euros were missing for social health insurance; EUR for maternity social insurance.

However, this is due to seasonality; for example, many employers pay your December salary in the same December to cover the costs of the previous financial year.

“The collection of the budget is influenced by seasonality. In the first months of the year, the collection of contributions, both real and expected, is always lower, and the increase in benefits is due to seasonality, changes in legislation and others. factors, ”confirmed S. Jarmalis.

February. Sodra’s budget data is not yet available.

Sodra’s budget for this year has been prepared and approved taking into account the economic development forecasts of the Ministry of Finance, in which the impact of the pandemic and the quarantine has been evaluated, says a representative of Sodra.

The state budget provides Sodra with compensation for the costs of quarantine and pandemics (mainly sickness benefits for parents caring for young children who are unable to attend closed educational establishments due to quarantine).

The Sodra budget approved last year is expected to be positive and revenue expenditures should exceed $ 136 million. but this amount can be adjusted for economic trends.