[Latvia] One in five workers earns below minimum wage

The monthly income of 20 per cent of employees in Latvia failed to reach the country’s minimum wage, in Q3 of 2021, LSM.lv reports.

Data from the State Revenue Service (VID) suggests most of those affected are employees in companies, Latvian Radio reported on November 29.

If an employee's income does not reach the minimum wage, it ordinarily means they are working part-time. In 2020, amendments were adopted by the Saeima stating that employers would have to pay social contributions for part-time employees. Employers will receive this bill in December.

The Latvian Finance Ministry's representative Ilmārs Šņucins said, “Speaking of the time it's being introduced. Yes, we see there is a COVID crisis and for many it is not a short-term issue, but after the economic slump in 2020, we see economic growth going up this year and the coming years and growing demand for working hands. It is not a critical situation in the labour market. Average wages are also rising.”

According to VID's assessment of the income of workers in Q3 this year, 20 per cent - or more than 179,000 people - do not earn 1,500 euro in three months (three minimum monthly salaries), from which mandatory social contributions should be paid.

VID spokeswoman Inga Mukāne said that almost 90 per cent of these individuals were workers in companies. 65.5 per cent were between the ages of 25 and 63; the economically active population.

Source: LSM.lv

(Quote via original reporting)

The monthly income of 20 per cent of employees in Latvia failed to reach the country’s minimum wage, in Q3 of 2021, LSM.lv reports.

Data from the State Revenue Service (VID) suggests most of those affected are employees in companies, Latvian Radio reported on November 29.

If an employee's income does not reach the minimum wage, it ordinarily means they are working part-time. In 2020, amendments were adopted by the Saeima stating that employers would have to pay social contributions for part-time employees. Employers will receive this bill in December.

The Latvian Finance Ministry's representative Ilmārs Šņucins said, “Speaking of the time it's being introduced. Yes, we see there is a COVID crisis and for many it is not a short-term issue, but after the economic slump in 2020, we see economic growth going up this year and the coming years and growing demand for working hands. It is not a critical situation in the labour market. Average wages are also rising.”

According to VID's assessment of the income of workers in Q3 this year, 20 per cent - or more than 179,000 people - do not earn 1,500 euro in three months (three minimum monthly salaries), from which mandatory social contributions should be paid.

VID spokeswoman Inga Mukāne said that almost 90 per cent of these individuals were workers in companies. 65.5 per cent were between the ages of 25 and 63; the economically active population.

Source: LSM.lv

(Quote via original reporting)