The Ministry of Social Security and Labour, sponsor of the legislation, said the new law also improves conditions for people who are in debt to the state.
At the adoption stage on Thursday, 88 MPs to two MPs voted in favour of the amendments. Two MPs abstained from the vote.
The amendments are aimed at reducing the number of people working illegally in Lithuania, increasing the involvement of the Tripartite Council and other social partners in decision-making as to funding for the working population. In addition, they are expected to rationalise the allocation of the funds themselves and increase incentives for the indebted residents to return to the labour market and to increase their housing protection.
Data for 2022 show that Lithuania’s shadow market is one of the largest in Europe, according to the ministry.
Around 153,000 people were granted the status of unemployed by 1 August 2023, the Employment Service said.