In 1990, after the restoration of Lithuanian independence, a new system of social insurance and welfare was established, with its fundamental legal principles. The Ministry of Social Security and Labour deals with welfare assistance, employment problems, the preparation of bills, and the initiation of new proposals. The most important issue in social protection is social insurance. The social insurance system is run by the state. It covers pensions, maternity benefits, and insurance against illness, unemployment and accidents.
Social insurance is compulsory for all employed people.
It is centralized and is managed by an accredited state institution. Distinguished citizens are given 1st and 2nd degree pensions by the Republic of Lithuania. Pensions are also given to those who, because of illness or injury in childhood, are not able to produce the required work record to qualify for social insurance and are not eligible for any other pensions. Private pension insurance has not been very popular in Lithuania. The Ministry of Social Security and Labour sets the standards of social protection and assistance and analyses the social situation of the state.