The The Progressives party believes that Latvia needs to agree on a predictable system for setting the minimum wage, for example by linking it to the average salary level, said Andris Šuvajevs, head of the party’s parliamentary faction.
“‘The Progressives’ believe that we need to agree on a clear system for increasing the minimum wage. For example, we would support setting the minimum wage at 50% of the average salary,” Šuvajevs said.
The politician stressed that such an approach would help avoid annual political debates and uncertainty over the following year’s minimum wage level. At the same time, it would reduce the need to justify changes by referring to the state budget’s financial capacity.
According to Šuvajevs, such a system could also ensure faster growth of the minimum wage than is often proposed in discussions among social partners.
“Next year’s minimum wage could potentially be even higher than what the Free Trade Union Confederation of Latvia is demanding,”
the politician suggested.
As previously reported by the LETA news agency, discussion on further increases to the minimum wage is possible, but it should not turn into a bidding war, especially during the pre-election period, said Edmunds Jurēvics, head of the parliamentary faction of New Unity (JV).
He recalled that an earlier agreement had been reached on labor tax changes involving both employers and employees. As a result, the tax burden for most taxpayers was reduced and net income increased. The agreement also raised the tax-free minimum for pensions to 1,000 euros, effectively exempting around 98% of pensioners from paying personal income tax on pensions.
Jurēvics pointed out that the same agreement also included a gradual increase of the minimum wage. Trade unions are currently calling for a steeper rise, and the politician acknowledged that the issue is open for discussion, but it must take place together with social partners — employers and employees — within the context of next year’s state budget.
The JV faction leader emphasized that raising the minimum wage has both positive and potentially negative effects.
On the one hand, it improves the financial situation of less protected groups and may reduce poverty risks. On the other hand, an excessively rapid and unbalanced increase could create risks, including stimulating the shadow economy.
Jurēvics also noted that he does not wish to participate in a political competition over promises regarding how high the minimum wage should be. In his view, an objective decision on the matter will most likely be taken by the next parliament during the adoption of the state budget.
At the same time, he admitted that discussion of a larger increase is possible, particularly if amendments to the Labour Law were adopted simultaneously to make labor relations more flexible.
Previously, Harijs Rokpelnis, head of the parliamentary faction of the Union of Greens and Farmers (ZZS), told LETA that the proposal by the Free Trade Union Confederation of Latvia (LBAS) for increasing the minimum wage in 2027 is not ambitious enough considering Latvia’s lag behind neighboring countries.
“We believe the LBAS proposal lacks ambition.
Latvia currently has the second-lowest minimum wage in the European Union, and it is approximately 250 euros lower than in Lithuania and 100 euros lower than in Estonia,” Rokpelnis said, stressing that Latvia should aim to at least reach Estonia’s minimum wage level in the coming years.
At the same time, ZZS is calling for the discussion on raising the minimum wage to be viewed in a broader context, linking it with changes to labor regulations.
“We propose linking discussions on raising the minimum wage level with discussions on amendments to the Labour Law,” Rokpelnis stated.
As reported, the Free Trade Union Confederation of Latvia proposes increasing the minimum wage in 2027 by at least 55 euros, setting it at 835 euros per month. Currently, Latvia’s minimum monthly wage is 780 euros.
Trade unions argue that the pace of minimum wage growth is lagging behind increases in other salaries and emphasize Latvia’s comparatively low wage level within the European Union, especially compared with Lithuania and Estonia.
LBAS also calls for assessing the minimum wage together with increases to the non-taxable minimum and tax relief for dependents, emphasizing the importance of these measures for supporting low-income earners and families.
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