The main changes in 2021: they will affect the wallet of every Lithuanian resident



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According to Sodra, in early 2021, new residents who have never participated in pension accumulation before will be included in the second pillar pension accumulation.

As you know, proposals to participate in the accumulation of second pillar pensions in a randomly selected accumulation company will be received by those residents who were not previously included in the accumulation and who have a work contract or are self-employed and under 40 years of age on January 2 of this year.

Growing incentive

In 2021, 0.3 percent. point, up to 2.4 percent. The rate of temporary pension accumulation for the population included in the second pillar pension accumulation is increasing. In 2023, this rate will reach 3 percent.

In 2020, 0.6 percent were transferred to their pension funds monthly at a transition rate. of the average salary (VMU), and in 2021 this incentive will reach 0.9 percent. VMU.

Accumulating the full 3 percent. 1.5% is transferred to tariff. of VMU. Next year it will be almost € 20 per month.

In 2021, the administrative deductions from accumulated pension assets will also decrease. In 2020, 0.65 percent was applied. limit and will be reduced to 0.5% from January 1.

The main changes in 2021: they will affect the wallet of every Lithuanian resident

© DELFI / Andrius Ufartas

Covid-19 benefits

As of January 1, the allowance per job seeker increases from € 200 to € 212 for those who are registered with the Employment Service and do not receive other benefits.

However, your payment term is shortened from 6 to 4 months. The person claiming the benefit must have lost his job no earlier than 3 months before the emergency or quarantine declared by the Government. Neither will the job search allowance be paid to students or career school students.

Freelancers and after the New Year can expect a monthly maintenance of 257 euros. However, it will only be credited if the self-employment activity has been registered for at least 3 months in a 12-month period and has not been de-registered before the date of the declaration of quarantine and emergency.

MMA – 642 euros

As of January 1, the monthly minimum wage on paper increases by 35 euros to 642 euros. The increase “in the hands” is about 20 euros, employees should receive about 468 euros.

A higher MMA also increases the wages you must pay to avoid income tax on allowances. As of January 1, these workers must pay at least € 1,059.30 on paper, € 57.75 more than at present.

As the quarantine continues, the amount of subsidies for downtime increases due to the increase in MMA. As of January 1, it should reach 1.5 MMA, that is, € 963 on paper, 100% refunded. work salary. To date, the 1.5 MMA threshold has been € 910.5 on paper.

A higher MMA also affects the self-employed. The amounts of the contributions to the state social insurance (VSD) and to the compulsory medical insurance (PSD) depend on this amount. In 2021, the minimum monthly PSD fee will increase from € 2.44 to € 44.81, and the full month business license SSD fee will increase from € 3.05 to € 55.98.

The main changes in 2021: they will affect the wallet of every Lithuanian resident

© DELFI / Andrius Ufartas

Child’s money – 70 euros

The money for the so-called child increases from 10 euros to 70 euros from January 1. The benefit for children with disabilities, from large and low-income families, increases by 11 euros to 111 euros.

Pension – 440 euros

It is estimated that the average old-age pension with the required seniority in 2021 will reach 440 euros, and the average pension – 413 euros. Currently, the average old-age pension with the required seniority is € 400 and the average pension is € 377.

The basic amount is 177 EUR.

Next year, salaries should also increase slightly for civil servants, civil servants, employees of state and municipal budgetary institutions, politicians and judges, as the base amount of the official salary increases from 176 to 177 euros.

The fixed part of the official salary is calculated by multiplying the base amount of the official salary by the coefficient applied to the specific position. Salaries are usually complemented by a variable part of the official’s salary, which depends on the achievement of work goals, as well as bonuses, bonuses or overtime payments if they have worked.

Salary taxes

No changes in taxes or social security contributions are foreseen for next year, neither for employed or self-employed workers, but some previously adopted changes will take effect.

As of 2021, the amount of the annual rent will change, above which a progressive 32% will be applied to the excess. GPM rate. This means that the part of the annual income received that exceeds 60 average salaries (81,162 euros) is taxed at 32%. GPM rate (in 2020 – higher than 84 VMU, that is 104,277.60 euros).

In 2021, the amount of tax-free monthly income and the annual NPD formulas will also change.

For residents whose monthly income related to the employment relationship or the relationship corresponding to its essence is higher than the monthly minimum wage (642 euros) valid on January 1, 2021, the monthly NPD in 2021 will be calculated according to the formula: monthly NPD = 400 – 0.18 x (monthly salary of a resident – MMA, valid from 01.01.2021, one amount).

As of January 1, 2021, the monthly NPD formula changes: the coefficient is 0.18 (in 2020 – 0.19) and the size of the MMA is 642 euros (in 2020 – 607 euros).

How these changes will affect wages can be found in Delfi’s spreadsheet.

The Finance Ministry forecasts that salaries will grow 4.1 percent in 2021 and inflation will be 1.4 percent.

The main changes in 2021: they will affect the wallet of every Lithuanian resident

© DELFI / Andrius Ufartas

New values

There are no amendments to the Property Tax Law in 2021, but the amounts paid by owners may increase next year due to the massive real estate appraisal carried out in 2020.

We note that this year the tax values ​​of real estate objects are being recalculated, which will take effect from January 1, 2021. Therefore, residents and legal entities must calculate the property tax for the tax period of 2021 in accordance with the new tax values ​​established by the Registry Center ”, said Rasa Virvilienė, Director of the Legal Department of the State Tax Inspection.

More expensive shipments

As of July 1, 2021, the changes related to the e-commerce package will take effect.

“For example, there will be no import VAT rebate for small shipments (up to 22 euros -” Delfi “), distance trade from third territories or goods imported from third countries will appear, the conditions for distance trade within the EU will change, etc. ” – said R. Virvilienė.

Therefore, small shipments from China or Russia will have to pay about a fifth (standard VAT rate – 21%) more.

The fumes get more expensive

According to the representatives of the Ministry of Finance, according to the modifications to the Special Tax Law approved in 2018, due to fiscal factors, cigarettes could rise in price by about 0.13 euros per 20 units on average from March 2021.

A pack of cigarillos or cigars can cost around € 0.17 (assuming a pack of 20 grams of taxable product, if the weight is different, the effect on the price is different) and 30 grams of smoking tobacco is around 0, € 42.

The main changes in 2021: they will affect the wallet of every Lithuanian resident

© DELFI (Photo by K. Čachovskis)

Electricity prices

Based on rates approved by the State Energy Regulatory Board (VERT) for customers of the public provider Ignitis, the most popular “standard” rate for a time zone will increase by 2.9% effective January 1. (0.4 ct / kWh) to 14.1 ct / kWh (VAT included), two time zones: 3.9 percent. (0.6 ct / kWh) to 16.1 ct / kWh (days) and 1 percent. (0.1 ct / kWh to 10 ct / kWh (night and weekend).

As you know, more than 5 thousand. Electricity consumers who consumed kWh per year this year had to choose independent suppliers whose prices are not regulated.

Gas prices

As of January 1, domestic consumers who use natural gas for cooking will pay 3 cents more per cubic meter of natural gas consumed, that is, 0.50 EUR VAT included, the fixed part of the rate (paid monthly, regardless of consumption gas) will not change – 0.56 euro with VAT.

For consumers using natural gas for heating, natural gas rates (neither fixed nor variable) remain unchanged.

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