It would be a scandal if companies running unsuccessful projects were allowed to increase salaries, Latvian President Edgars Rinkēvičs told journalists on Wednesday following a meeting with Prime Minister Evika Siliņa (New Unity).
The president was asked to comment on a draft directive prepared by the Ministry of Transport, which proposes allowing exceptions for increasing personnel expenses in eight state-owned companies under the ministry. These include the national Rail Baltica implementing body European Railway Lines, “Latvijas Gaisa satiksme” (Latvian Air Traffic), and the national airline airBaltic.
At the same time, public outrage has been growing on social media regarding the salaries of ministers and top officials, as revealed in their 2024 annual declarations.
Asked whether the public sector is getting “overheated” with wage hikes that the private sector cannot match, the president referred to the decision made last year to cap the total public wage fund increase at 2.6% for 2025. He recalled that exceptions were made — notably for the interior affairs system — which he considers justified and resulting in certain positive outcomes.
Rinkēvičs stressed that there must be no exceptions when it comes to the salaries of public servants and officials. As for state-owned enterprises, he said each case must be assessed individually. Based on what he has seen, the president believes the implementers of Rail Baltica do not deserve additional pay and that completely different actions should be considered.
He emphasized that any such decision to raise salaries — even if legally permitted as an exception — must be carefully analysed and clearly justified.
“I certainly do not agree with salary increases for those who, in one way or another, hold monopolistic positions and show no results — such as our so-called ‘great Baltics’. If there truly is a case where salary increases are clearly justified, such as to retain qualified professionals, and this can be explained in plain terms, then the government can make that decision,” the president said.
He warned that if a “salary raise epidemic” begins, it will send the wrong message. Rinkēvičs pointed out that it is contradictory to talk about budget cuts and austerity on the one hand and about salary increases on the other.