RIGA - The government today approved amendments to the Labor Law, increasing the minimum wage from EUR 500 to EUR 620 as of January 1, 2022.
The amendments also provide that the minimum monthly wage is increased to EUR 700 as of January 1, 2024.
Welfare Minister Gatis Eglitis (Conservatives) said that the wage should be respectful in order to reduce poverty risks. In his opinion, the new government also should increase the non-taxable minimum income, thus, improving competitiveness with Lithuania and Estonia.
The legislative amendments were adopted by the parliament in late October, and on November 11 President Egils Levits promulgated them.
The president noted that this is a necessary step to ensure welfare and growth of Latvian residents, but there is a long-term risk arising from the fact that the decision has been made politically by lawmaker, passing by the usual procedure from the Cabinet of Ministers.