Analytics, Financial Services, Legislation, Lithuania, Pensioners

The proposal was introduced on Tuesday by the Ministry of Social Security and Labour. However, the proposal will have to be approved by Parliament.

According to Algimanta Pabedinskiene, Minister of Social Security and Labour, pension growth is a continuous process that proceeds taking into account the improving situation of the State Social Insurance Fund (Sodra).

"We are being consistent; we observe and forecast what the year 2016 will be like. Based on the tendencies of Sodra, we do see that social insurance pensions are balanced and are moving towards "a plus sign". Therefore, we believe that pensions must be raised from 1 July 2016," said Pabedinskiene.

According to the minister, old-age pensions will grow by 6% on average. The Cabinet of Ministers has been informed and approves of the proposal. How much a person's pension will grow will depend on the length of service and other factors.

Director of the State Social Insurance Fund, Mindaugas Sinkevicius, estimates that pensions will grow by EUR 16 on average.

Pension raise will require EUR 75 million from Sodra's budget and EUR 10 million from the state budget.

Now the average monthly pension in Lithuania is approximately EUR 256. Nearly 600,000 pensioners receive old-age pensions. Another 200,000 receive disability pensions. Pensions are expected to be gradually increased in 2017 as well.