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. The national social insurance pension consists of two parts: a minimum basic pension of LTL 121 (since 1st February 1997) and an additional pension related to the total work record and salary of the retired person. Some people (those who suffered loss during the occupation) are granted additional pensions besides the welfare pension. 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. Social assistance is also given to people who are not able to meet even their minimal needs. Non-insurance payments include social pensions, social grants, child benefits (paid by the state), provision of food (free of charge) a partial tax compensation for heating and hot water, the privileges of using public transport, and various other social services. The right to obtain social assistance is given to citizens of the Republic and to others who have permanent residence permits.

The Lithuanian labour exchange is part of the social welfare system. The Central Labour Exchange of the Republic and 47 local labour exchanges register unemployed persons and job vacancies, organize professional training and retraining for adults, pay unemployment grants, prepare new programs of employment and, together with municpalities, organize public works.