On Thursday, 13 October, Latvia’s parliament passed in the second reading amendments to the Labour Law. These amendments are intended to set the minimal monthly wage at EUR 620 starting with 2023 and EUR 700 starting with 2024.
According to authors of the legislative draft, the minimal wage must not be allowed to be below the minimum set by the state, which employers have to provide their employees for the work they do in normal hours.
Increase of minimal wages would promote income growth for households and motivate people on the labour market. Increase of minimal wages is also one of the ways that can help reduce poverty, the annotation mentions.
Currently the minimal wage in Latvia is EUR 500 (EUR 730 in Lithuania and EUR 654 in Estonia).
As noted in the annotation, average wages in Latvia have been on a rise in recent years. According to data from the Central Statistical Bureau of Latvia, in 2021 the average net wage for full-time work in Latvia was EUR 1 277. This is 11.8% or EUR 135 more when compared to 2020.
Amendments were submitted by Saeima deputies Krišjānis Feldmans, Sandis Riekstiņš, Jānis Butāns, Reinis Znotiņš, Evita Zālīte-Grosa.
For amendments to come into force, they have to be passed in the third and final reading by the Saeima.