Starting with the 1st of January 2024 the minimal monthly wage amount in Latvia will not be lower than 700 euros, as provided by amendments prepared by the Ministry of Welfare and approved by the government on Tuesday, the 14th of November.
This way the coalition’s agreement reached with trade unions will be completed.
Currently Cabinet of Ministers Rules for calculating the minimum monthly wage within normal working hours and the minimum hourly rate state that the minimal monthly wage for full-time work is 620 euros in Latvia. Last year’s approved amendments to the Labour Law provide for making sure the minimal wage is not below 700 euros starting with the 1st of January 2024.
According to data from the Central Statistical Bureau of Latvia (CSP) for 2018-2021, the proportion of workers who were paid a minimal wage or lower ranged between 18.1% and 20.6%. This means approximately one-fifth of all workers. In 2022 the proportion of minimal wage recipients
was the lowest in the past five years, dropping to 16%.
CSP data for the number of workers whose income was equal to or below the minimal wage amount indicates that in 2022 of 123 143 workers in the private sector 94 190 or 17.7% of the people employed in this sector. In the public sector there were 26 032 workers or 11.4% of the people employed there who were paid wages equal to or below the minimal wage.
Between 2019 and 2021 there was a slight increase in the number of people paid minimal wage or less (from 11.4% in 2019 to 13% in 2021). The increase in the private sector was not pronounced.
In Q2 2023 there were 887 600 employed persons or 64.4% of the population aged 15 to 74 years.
Also read: Trade union warns Latvia loses in areas of wages and business competitiveness
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