RIGA – Latvian Welfare Minister Ilze Vinkele (Unity) does not approve of All for Latvia-For Fatherland and Freedom/LNNK (VL-TB/LNNK) proposal to raise the minimum parental benefit without tying this increase to social contributions.
Such changes cannot be supported, since they will not provide “motivation to exit shadow economy,” Vinkele said in an interview with Latvian State Radio today.
VL-TB/LNNK demands increasing the minimum parental benefit to 50 percent of the minimum monthly wage as of July 1, 2013 and 70 percent as of 2014.
The nationalist alliance also demands raising the monthly untaxed minimum for families with dependants to 90 lats (128 euros) as of July 1, 2013.
Vinkele pointed out that the sides could reach a compromise regarding the monthly untaxed minimum, for example, agreeing to gradually increase it during the next three to five years.
The minister emphasized that 30 million lats will be allocated to young families and improving Latvia's birth rate next year. The 2013 budget will also include several positions from the nationalist alliance's ultimatum.
Vinkele also expressed hope that the coalition will be able to reach a compromise regarding these matters, emphasizing that a compromise means a deal where both parties give up part of their demands.