Lithuania Proposes 100% Salary Child Care Benefit to Boost Birth Rate

Lithuania faces a demographic crisis, with birth rates hitting a post-independence low, prompting the ruling Homeland Union – Lithuanian Christian Democrats (TS-LKD) party to propose a sweeping set of solutions. Laurynas Kasčiūnas, leader of the TS-LKD faction in the Seimas (parliament), stated that addressing long-term demographic shifts requires more than just promises; it demands a complex package of measures.

The party's study, "For Lithuania to Grow," outlines a dual approach: stabilization and adaptation. Stabilization aims to create conditions for more people to start families and commit to Lithuania by reducing practical barriers to life. Adaptation acknowledges the aging population and emphasizes healthy aging policies, increased economic productivity, and robust social protection.

A central proposal is to significantly boost parental benefits. Gintarė Skaistė, a member of the TS-LKD faction, explained that current benefits are insufficient, especially for lower-income families. The plan suggests paying 100% of a parent's previous salary for leave up to 1.5 years. For leave extending to two years, parents would receive 70% in the first year and 50% in the second, with increased minimum benefits for the lowest earners. These changes would take effect from early 2027 if approved.

Furthermore, the proposal seeks to guarantee kindergarten access for children from 18 months old, a reduction from the current age limit of two years. Radvilė Morkūnaitė-Mikulėnienė, Deputy Speaker of the Seimas, noted that many families opt for leave until their child is 1.5 years old. However, upon the expiry of benefits, securing a kindergarten spot can be challenging, leading to financial and organizational uncertainty for parents. This measure aims to alleviate that pressure.

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