As of 1 August this year, the basic pension will be increased by LTL 44, and the insured income – by LTL 74.

“As of 1 August this year, the basic pension will be increased by LTL 44, and the insured income – by LTL 74. Although we last increased the basic pension by LTL 50 and the insured income by LTL 58 as of 1 January this year, with increasing prices of commodities, housing and pharmaceuticals, it is important to keep on increasing SODRA pensions, social assistance benefits and other social benefits in order to ensure sufficient subsistence income to beneficiaries,” says Minister of Social Security and Labour Vilija Blinkevičiūtė.

Due to this increase, all SODRA pensions (except widow’s/widower’s pensions) will increase by averagely 10 percent. This will have effect on about 870,000 people.

The increased basic pension will result in the increase of LTL 48.40 of SODRA old-age pensions, provided a person has the obligatory state social pension insurance record. SODRA work incapacity (invalidity) pensions will increase in accordance with the level of person’s work capacity. Moreover, social assistance pensions and different target compensations paid by municipalities will be increased.

The Increased basic pension will have influence on the growth of a long service bonus, which was started to be paid as of last July to those pensioners who have more than 30 years of the length of service. The bonus will reach LTL 10.80 for each full year over the length of 30 years.

Increase of SODRA pensions due to the growth of the insured income will be very individual to every pension beneficiary. Pension increase will depend on the length of service acquired by a person and wages, of which social insurance contributions were paid, earned before awarding a pension.

According to the Minister of Social Security and Labour, the average SODRA old-age pension, provided there is the required length of service, will increase by LTL 185, or almost 29 per cent, over this year, as compared to the average old-age pension, provided there is the required length of service, of last December.

Almost LTL 345 million will be used for increasing basic pensions and the insured income from SODRA and state budgets this year.

Furthermore, the amount of LTL 782 of a maximum non-recalculated pension will be set as of 1 August 2008. Maximum non-recalculated pension will increase by 13.9 per cent, or LTL 95 (from LTL 687 to LTL 782). After the new amount of this pension is approved, the amount of non-recalculated pension for beneficiaries of non-recalculated pensions will increase.