Latvia’s Ministry of Welfare plans to present a proposal to set the minimal wage in the country to the previous year’s average wage amount, said minister Gatis Eglītis in an interview to LTV programme Rīta panorāma.
According to the ministry, the minimal wage amount in the country may be set at 50% of last year’s average wage amount. The ministry has decided to pick this approach now and has proposed increasing the minimal wage in the country to EUR 640 in 2023. This amount is half of last year’s average wage amount – EUR 1 280.
The minister said this model has already been discussed with multiple social partners, and they supported it. «We have spoken with social partners. We have received a great deal of support from trade unions. I will be having a meeting with Latvian Employers’ Confederation today,» said the politician, predicting that employers will be generally in favour of increasing the minimal wage.
Eglītis stressed that the difference between minimal wage amounts between Latvia Estonia and Lithuania is already «unacceptably large» and living with EUR 500 before taxes is a major challenge for people.
The minister said initially the ministry had developed an offer to increase the minimal wage next year to EUR 640 or EUR 700. However, it is already clear that the increase to EUR 700 would be too rapid.