Financial Services, Legislation, Lithuania

The presidential veto was supported by 94 MPs, no MP voted against it and one MP abstained from voting, writes ELTA/LETA.

Prime Minister Andrius Kubilius had previously said that these benefits would be cut later nonetheless. ""We understood the presidential decree in a very simple and clear manner – maternity benefits are not to be reduced unless other social benefits are cut, because it violates the principle of solidarity. It just was the case that we started from maternity benefits," Kubilius said.

According to the prime minister, the reduction of maternity benefits will be addressed again when the Seimas considers the entire package of cutbacks in social benefits.

As of July next year, maternity benefits will be cut 10%. The law amendments stipulate that a mother will receive maternity benefit amounting to 90% of her salary till her child is one year old, and 75% of her salary for another year.

Till July 2010, a mother will receive maternity benefits which total the entire amount of her salary in the child's first year and 85% of salary in the second year, yet the maternity benefit cannot exceed the amount of five insured income – 7,440 litas (2,155 euros) before taxes.