Freezing the salaries of ministers and other top state officials would be a symbolic gesture, said Bank of Latvia President Mārtiņš Kazāks in an interview on Latvian Television’s Rīta panorāma (Morning Panorama) on Thursday.
Commenting on Prime Minister Evika Siliņa’s (New Unity) call for the coalition to consider freezing these salaries, Kazāks stated that this is a short-term and symbolic move—while it may save some public funds, it is not a sustainable solution.
He stressed that Latvia must find long-term resources for defense, healthcare, and education, but that public sector wages cannot be frozen indefinitely. Instead, the focus should be on improving productivity and reviewing existing expenditures for efficiency.
“Without a thorough review of current spending, without substantial improvements in efficiency, and unfortunately, without a significant reduction in the number of public sector employees, we won’t manage—because our demographic trends are what they are,” said Kazāks.
The Bank of Latvia President also noted that reforms are rarely painless:
“Some will benefit, some will lose. It will not be painless. For someone, it will always hurt.”
Kazāks emphasized that Latvia cannot afford to delay difficult but necessary economic and social decisions until the next parliamentary elections, which are 18 months away. “It will be painful, unfortunately, but I hope the outcome will be positive,” he said.
He added that this is ultimately about good governance and the responsible use of public resources. “If we see that something can be done better, then we must do it better,” Kazāks concluded.
As previously reported, Prime Minister Siliņa wrote on social media platform X that she is calling on the coalition to freeze salaries, emphasizing that the 2026 budget must prioritize security, education, and support for families.
In a Latvian Television program Šodienas jautājums (Today’s Question),
Siliņa explained that at a time when the public sector budget is being reviewed, politicians must lead by example.
When asked whether her proposal came too late—since the opposition had suggested the same a year ago—she replied that at the time there were other savings made, such as freezing party funding, but that now the government “needs to go further.”
Asked whether the salary freeze could last a year or longer, the Prime Minister said the specifics have not been discussed yet but didn’t rule out a longer freeze. She also stressed, “We’re planning the budget for three years—it’s not just about one year.”
Siliņa believes the freeze should also apply to members of parliament. While the government cannot directly make that decision, she called on coalition MPs to support the initiative: “It would certainly be a responsible step to follow the call of the government and its leader.”
According to the Law on Remuneration of Officials and Employees of State and Local Government Institutions, ministerial salaries are calculated using a base salary multiplied by a coefficient. This base is recalculated annually based on average wage growth.
In 2023, the base salary was 1,137 euros, with ministers’ salaries calculated using a coefficient of 6.2, resulting in a nominal monthly salary of 7,052 euros before tax.
The Prime Minister’s coefficient was 7.0, giving a nominal monthly salary of 7,962 euros before tax.
In 2024, the base salary increased to 1,206 euros, and ministers’ nominal monthly salary rose to 7,475 euros, while the Prime Minister’s salary was 8,440 euros before tax.
Actual earnings were even higher due to paid leave, social guarantees, and other compensations, as shown in politicians’ financial declarations.
This year, the nominal monthly salary for ministers is 7,670 euros. Without implementing the proposed freeze, it would increase to 8,089 euros in 2025.
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