Linas Jegelevičius
If you thought until now that New Year brings in all changes, you were wrong. Not in Lithuania at least. The year’s November 1 in the country ushered in a slew of novelties. Let’s embrace them: the speed on motorways and highways decreases, grandparents will be able to claim sickness benefits for their sick grandchildren, cash payments are limited to 5 thousand euros, getting the niche in a cemetery’s municipality-managed columbarium will be free of cost; meanwhile workers working outdoors or those whose work involves traveling and driving and whose part of the wage was tax-free are affected too.
Along these, some several other changes also come into force!
From 1 November, the provisions of the Law on Limitation of Cash Payments of the Republic of Lithuania come into effect, according to which payments in cash, both to natural and legal persons, will be restricted to 5 thousand euros. Apparently, the change concerns especially many Lithuanians, particularly those of venerable age.
«Unfortunately, the bank care little about seniors, who have difficulties in withdrawing money in the provinces due to the steadily diminishing network of interactive teller machines, known as ITMs. Many seniors still keep part of their savings home – for a «rainy day». We understand that changes are inevitable, just we doubt the fast pace at which they are implemented,» Vanda Balnionienė, a septuagenarian pensioner of «Bočiai», a Lithuanian pensioner community, told BNN.
The State Tax Inspectorate (VMI) says that the new measure is aimed at reducing «shadowy economy» in the country.
«It is still bulky. Just check a supermarket’s self-service checkouts in Lithuania – every fifth grocery shopper circumvents those accepting bank cards only and rather chooses those where the payment can be made in cash. Amid the economic crunch, an increasing number of employers pay off the books,» Aleksandras, a blue-collar worker in Klaipėda, Lithuania’s third-largest city, told BNN.
If mutual settlements or payments cannot take place in non-cash due to the fact that payment service providers do not provide the necessary services at the place, the person receiving (accepting) payments in cash, from now on, will be obliged to notify VMI about this and to indicate the circumstances that made it impossible to settle the payment in a non-cash way. The person will have 10 days to report the fact of the cash transaction.
When it comes to social care, from 1 November, not only parents, but also grandparents will be able to take care of their grandchildren and receive sickness benefits if, due to an outbreak of a contagious disease or an epidemic, such as influenza or Covid-19, an infection control regime is announced at the educational institution and the children cannot attend the educational institution and have to stay at home, the Lithuanian Ministry of Social Security and Labour (SADM) has announced.
When it comes to wage-paying, 1 November is a game changer for those who, until now, received part of their wage as compensation for working outdoors or for those whose work involves intensive travel and driving.
The compensation amount of the basic salary will decrease from 50 to 30 percent respectively. And furthermore: such compensation for this type of employees will be completely waived in June next year. Until now, such compensations were exempt from personal income and Social Security taxes, so an increasing number of employers abused the right and paid their employees wages – or part of them – in this way.
«Compensations are disadvantageous to such workers because they are not included in the allocation of other social guarantees: vacation, sick pay, old-age pension and other benefits. We hope that the changes will help ensure higher social guarantees and wages for employees,» Vita Baliukevičienė, head of the Labour Law Group of the Ministry of Social Security and Labour (SADM), was quoted in Lithuanian media.
Interestingly, 6 055 companies employing 103 thousand employees paid more than 175 million euros in such compensations in 2021. Most (51.7%) of them were paid in the construction sector (90.5 million euros were paid to almost 48 thousand employees), in second place (13.4%) – the transport sector (14.5 thousand employees were paid 23.4 million euros).
Speaking of the other novelties, those who, until now, would pinch an attractive colleague’s forearm in office as the acknowledgment of physical admiration, should discontinue the behaviour immediately – new violence and sexual harassment rules entail that an employer whose company has an average number of employees greater than 50 will be required to approve a violence and harassment prevention policy, make it public and implement it.
«The employer must ensure a healthy and safe working environment for the employees. The amended Labour Code prohibits not only mobbing, which is a form of psychological violence at work, but also violence and harassment, including psychological violence and gender-based violence and harassment. Prevention of violence and harassment is one of the most effective ways to ensure that employees do not experience hostile, unethical, humiliating, aggressive, abusive, offensive actions. When manifestations of such behaviour appear in the organization, it is necessary to react immediately according to the pre-planned procedure,» said Baliukevičienė.
And if you are about to hit a road in Lithuania, you should heed the reminder of the country’s Directorate of Motor Vehicles:
from 1 November onward, the maximum permitted speed on highways and highways decreases, a the so-called winter tire season begins.
From 1 November until 31 March, passenger cars, trucks with a maximum permissible mass of no more than 3.5 tons, motorcycles and tricycles are allowed to drive at a speed of no more than 110 km/h on motorways and highways. The speed on other roads with an asphalt or concrete surface does not change – it remains 90 km/h. The speed limit on other roads also remains unchanged – 70 km/h.
Besides, from 10 November until 31 March, it is prohibited to operate motor vehicles, except for mopeds, motorcycles, tricycles, all types of quadricycles, and trailers with summer tires.
1 November also ushers in change for car buyers and sellers – from now on, each party to the agreement will be given a longer period to declare the change of ownership – 10 days instead of 5 days.
From 1 November, amendments to the Law on the Burial of Human Remains envision that residents will no longer have to pay for niches in a columbarium installed by municipalities.
Currently, many municipalities charge a fee – from 300 to 1 500 euros – for providing a columbarium niche. The change is expected to ease the financial burden for the relatives of the deceased amid a time of grief.
The size of the grave site for cremated human remains has also been determined. Reburial of cremated human remains will be prohibited in a cemetery where they have already been buried.