In a letter to the Ministry of Finance (MoF) and the State Chancellery (SC), the Free Trade Union Confederation of Latvia (LBAS) urges the government to maintain priorities in education, healthcare, and demography, despite the cabinet’s decision to instruct ministries and other central government institutions not to submit proposals for priority measures in next year’s state budget, LBAS reports.
While LBAS supports the government’s stance that it is essential for Latvia to increase state funding for external and internal security, the confederation stresses that it is also critically important to maintain financing for other strategically vital sectors – education, science, healthcare, and demography.
LBAS supports increasing funding for national defense but calls for a gradual increase to 5% of gross domestic product (GDP). Specifically, LBAS proposes raising the defense budget to 4.5% of GDP by 2026, and to 5% by 2027 and beyond.
The letter emphasizes that one of the government’s goals, as outlined in the Public Health Guidelines for 2021–2027, is for healthcare funding to reach 6% of GDP by 2027.
LBAS notes that current healthcare funding lags significantly behind this target.
The European Commission (EC) has also expressed concern in its latest report on Latvia.
LBAS insists that “state funding for the Ministry of Health’s core functions” must reach at least 5% of GDP by 2026.
The union further highlights that several areas of the education system – vocational education, special education, vocational arts education, and science – continue to be underfunded. Moreover, the number of long-term vacancies in the education sector has been growing for years. LBAS warns that cutting education and science funding endangers the country’s long-term ability to ensure defense and economic stability.
Modern military and security strategies require highly qualified personnel with knowledge in technology, languages, cultures, and cybersecurity – making the education system the key source for such specialists, the union argues.
According to LBAS, the Education Development Guidelines for 2021–2027 require that teachers’ salaries should be no less than 130% of the average salary in the public sector for workers with at least a bachelor’s degree.
Additionally,
LBAS calls for the conclusion of a multi-year agreement on railway infrastructure maintenance and development,
with appropriate state funding. Work should also begin on establishing a unified railway infrastructure system.
The union stresses the need to ensure a stable, efficient public transport sector, with social protections for employees, retention of current specialists, and attraction of younger qualified workers, including the creation of decent working conditions. To attract and retain skilled workers, LBAS proposes setting the minimum hourly wage in the passenger transport sector at no less than €11.50, with annual revisions based on labor market and inflation trends.
LBAS also reiterates the need for a general agreement in the passenger transport sector to provide a mechanism for dynamic adjustments between the parties.
In its letter to the MoF and SC, LBAS also calls for the removal of the 2.6% cap on public sector wages, increased tax relief for dependents, and higher childcare and parental benefits. Furthermore, it proposes retaining 75% of parental benefits for those returning to work before the end of their benefit period.
LBAS also urges the creation of an action plan to promote collective agreements and their budgetary priorities,
an increase in domestic per diem rates for business travel, implementation of a solution for deferred social security contributions, and a review of minimum wage and tax-free income thresholds.
The Latvian Health and Social Care Workers’ Union (LVSADA) has likewise expressed concern over the government’s decision to prohibit the Ministry of Health and the Ministry of Welfare from submitting proposals for priority measures in the 2026 state budget.
LVSADA argues that this decision contradicts the European Council’s recommendations to Latvia on economic, social, employment, structural, and budgetary policies. The EC recommends ensuring that state funding can meet rising expenditure needs not only in defense but also in healthcare and social protection. The EC also calls for strengthening the adequacy and accessibility of the healthcare system, including ensuring sufficient human and financial resources.
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