No cap on maternity benefits

2009-05-27

RIGA- The ruling coalition parties announced that no ceiling willbe imposed on maternity benefits. These benefits will only be paid to parentswho do not work.

A transition period will be in place until May 3 2010 for thenew system to come into force, as Prime Minister Valdis Dombrovskis and WelfareMinister Uldis Augulis told reporters.

The government will act in accordance with the principle of legitimateexpectation, said Dombrovskis. He also acknowledged that the government will beable to allot money necessary to pay the maternity benefits during thetransitional period.

Augulis said that no ceiling will be imposed on maternity and paternitybenefits after the transition period, as the government had originally planned.

According to the government's May 12 decision, an 500 lat ceiling would be seton maternity benefits that are currently equal to 70 percent of gross income ofone of the parents over the 12 previous months, and may be less or more than500 lats per month. Benefits for babies up to one years old would also becancelled.