After dropping out of school or studies, young people will feel the tax burden: they may be caught in unexpected debt



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Youth who are currently finishing college or school can remain silent until the end of August. It is in that month that the PSD breaks, so some of the minimum contributions for September can be paid by themselves.

Together, Sodra reminds young people of VLK of several important things:

Who may have to pay PSD contributions and when?

If, after leaving school or university, young people do not continue their studies, become employed or self-employed, register with the Employment Service and become unemployed in the fall, they must pay a minimum PSD contribution of 42, € 37 from September.

By the way, it is important to know that studies at some foreign universities only start in October. In this case, the contribution for September must also be paid independently.

After working in Lithuania, the PSD employee no longer needs to take care of him, the employer pays him. The first contributions are calculated for the month in which the person started working. For example, if a youth starts working on September 18, they will not have to pay contributions for September.

However, after starting work in October, the contribution would have to be paid in September if the person had not registered with the Employment Service and had not been granted unemployed status.

Contributions will also be calculated after leaving Lithuania, for example for traveling or working abroad, if the resident has not declared the departure. More information on the departure declaration can be found here.

When are young people covered by the PSD with public funds?

Youth who have graduated from school or studies are insured with state funds until August 31 if their school year ended in the summer. If a student begins studying at a Lithuanian or foreign higher education institution according to a full-time (full-time) study program in September or if the student continues full-time (full-time) study in Lithuania and abroad , state funds are prohibited.

Residents actively seeking work are also insured with state funds: they register with the Employment Service and become unemployed. When he finds a job, the employer pays the contributions.

Contributions are not calculated even after departure and departure declaration.

What documents and to whom should they be presented?

If young people who have graduated in Lithuania are going to study at institutions of higher education in the countries of the European Union (EU) or Norway, Iceland, Liechtenstein, Switzerland, they must present the original academic certificate and identity document of the institution to the Territorial Health Insurance Fund (ICD).

After enrolling in UK higher education institutions (UK) before February 1, 2020, residents will be covered by PSD insurance at public expense until the end of their studies, but not more than 08/31/ 2023.

Only after receiving confirmation of the validity of student status in the EU, health insurance can be approved with state funds in Lithuania. The student’s PSD is valid for one academic year, so said certificate must be presented annually when the studies continue.

The official academic certificate provided by the ICD must confirm that the person is studying at this school. Invitations to study received by youth, even if they are official, are not considered as proof of student status; Such invitations do not prove that the person invited to study actually studies there.

Student insurance can be confirmed electronically when the higher education institution itself sends a certificate to the ICD that the youth is studying there.

It is important to know that if the school year abroad starts later, for example, in October, then in September, young people will have to pay the PSD contribution on their own. Otherwise, the insurance will end.

When traveling to study in EU countries, Norway, Iceland, Liechtenstein, Switzerland, it is recommended to reserve a European Health Card (EHIC) in advance. It confirms the right to receive the necessary medical attention in these countries, so that in case of health disorders it is not necessary to interrupt studies and return to Lithuania.

The costs of emergency medical services are reimbursed in whole or in part by sickness funds.
The EADC is issued free of charge upon request to the ICD. For pupils and students, this card is valid for one academic year, except for UK students, for whom the ESDK is valid until 12/31/2020.

Please note that if you are going to study outside Europe, for example in the United States, such students are not covered by public funds and have to take out their own health insurance (for example, with a private insurance company).

How and when to pay contributions?

However, if you have to pay the PSD contribution in September, it is important to know that the contribution of € 42.37 must be paid on the last day of the current month. Only a person who pays PSD contributions on time is entitled to reimbursable health services. You can learn more about this here.

Failure to pay the contribution will result in termination of the PSD and the youth must pay for the medical care himself. Also, PSD debt is piling up and will still need to be covered.

You can check if you have no PSD debt on the Sodra website.

You can check if you are covered by compulsory health insurance on the VLK website.

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