Important Changes to Unemployment Benefits Coming Soon

Lithuania is set to implement significant changes to its unemployment benefit system, altering how insurance records are calculated and impacting eligibility criteria starting July 1, 2026. These reforms aim to recalibrate the social safety net for those facing job loss.

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The minimum 12-month unemployment insurance record will need to be accumulated within the last 24 months before the day of acquiring unemployed status. Currently, the deadline is 30 months.

A key change involves the calculation of the minimum 12-month unemployment insurance record. Previously calculated over 30 months, individuals will now need to accumulate this record within the 24 months immediately preceding their unemployment status. Furthermore, periods during which an individual received unemployment benefits will no longer count towards this insurance record. The average insured income, used to determine the benefit amount, will also be calculated based on a 24-month period preceding the month before unemployment status is acquired, rather than the current 30 months.

These adjustments mean that previously accrued work periods may hold less significance for some individuals. A legal expert, Raimonda Joskaudienė, advised that people with older work histories, significant gaps in employment, periods where unemployment insurance contributions were not paid, or those who have previously received unemployment benefits, will need to carefully assess their circumstances to ensure they meet the new criteria.

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Furthermore: periods during which the insured person received unemployment benefits will not be included in the unemployment insurance record.

The reforms also introduce a revised structure for the benefit amounts themselves. While the new system is designed to provide stronger social protection during the initial three months of unemployment, the benefit amount is expected to decrease more rapidly in subsequent months compared to the current system. The proportion of fixed and variable components of the unemployment benefit will shift, with the variable part, linked to an individual's previous insured income, gaining greater importance. This means past earnings will play a more significant role in determining the benefit amount.

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And another novelty – received unemployment benefits will not be included in the insured income, based on which the amount of unemployment benefit is calculated.

These new regulations will apply to individuals granted unemployed status from July 1, 2026, onwards. Those who acquire unemployed status before June 30, 2026, will still be subject to transitional rules. The changes are intended to create a stronger incentive for the unemployed to return to the labor market, balancing immediate support with a structured decrease over time.

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If a person worked in the past, later had a long break, carried out activities from which unemployment insurance contributions were not paid, or had already received unemployment benefits – they will need to assess more carefully whether the record was indeed accumulated.