The Latvian Free Trade Unions Association (LBAS) proposes increasing the daily mission allowance within Latvia’s territory from EUR 8 to at least EUR 15. Latvian Employers Confederation (LDDK), on the other hand, sees no need for this, also stressing at the same time that this is an internal issue between employers and employees. This much was stated in the discussion “Mission daily allowance: Is EUR 8 a day enough?” held on Friday, the 21st of February.
Representatives of the trade unions stress that it is possible this amount should be larger and come close to the amounts in neighbouring countries.
LBAS expert for national economy affairs Mārtiņš Svirskis reported that in Lithuania, the daily allowance for missions is EUR 28 and it can be lowered to only 50% of a specific rate if it is clearly stated in the contract.
LBAS allows that initially it may be possible to establish a transition period to introduce larger amounts in order to lessen the load for employers.
LBAS stresses that since January 2020 consumer prices in Latvia have increased by nearly 49.8%, creating greater food costs. Catering services have also become 39.4% more expensive in Latvia in that time.
Deputy Chairperson of LBAS Anda Grīnfelde stressed that the remuneration system needs to be simplified and differentiated based on the distance of missions, participants’ wage levels and other factors.
“We are aware the budget is tight at the moment, but we have to take care of our employees,” stressed Grīnfelde, adding that the proposal from LBAS to increase the daily allowance has been asked to be reviewed by the Budget and Tax Subcommittee of the National Council for Trilateral Cooperation.
In turn, Anete Neilande, a lawyer of the Employers’ Confederation of Latvia and an expert in Labour Law, said that it was not necessary to review the amount of the daily allowance for missions in the territory of Latvia.
According to LDDK, although the cost of catering and other services has increased in recent years, it should be noted that the employer already bears these costs. In the confederation’s opinion, the current fixed amount of eight euros is sufficient.
Neilande pointed out that employers can pay the employee more following a prior agreement. She emphasized that the amount of the daily allowance for missions in the territory of Latvia is “an internally solvable issue between the employee and the employer”.
“I don’t think the daily allowance amount should be regulated from the side,” she said.
In turn, the Deputy Director of the Labor Relations and Labor Protection Policy Department of the Ministry of Welfare Ineta Vjakse emphasized that this issue is more about taxes than employment relations.
According to the Labour Law, the employer covers the expenses, and this law is “open and extensive”, so the employer can compensate almost anything he wants as long as it is related to the performance of the work, said Vjakse.
Astra Kaļāne, Director of the Direct Tax Department of the Ministry of Finance, also emphasized that the daily allowance for missions is not intended specifically for eating expenses. She encouraged employers to individually evaluate each case together with employees.
The representatives of the trade unions agreed that the situation could be solved by differentiated criteria for determining the amount of the daily allowance according to the situation, the distance measured, the type of work and other factors.
Commenting on this proposal, however, the LDDK said that determining the amount of travel costs, for example, by place of residence, would be difficult because “manipulation of the true place of residence of the employee may appear”.
Inga Vanaga, Chairwoman of the Latvian Education and Science Workers’ Union (LIZDA), emphasized that often the exam observers and other employees have to spend almost 24 hours with young people, rather than eight hours, although the payment is applied for only eight hours.
Also, Edvīns Krieviņš, the Chairman of the Latvian Cultural Workers’ Trade Union, mentioned that the shortage of the currently set amount is particularly felt by actors going on regional trips.
Partners agreed to meet again at the end of March to discuss more specific proposals.