Increase of retirement age might foster shadow economy - trade union

RIGA - Increase of the retirement age might foster shadow economy in Latvia and distrust in social insurance system, said Egils Baldzens, the chairman of the Free Trade Union Confederation of Latvia (LBAS).

Baldzens believes that there is no reason to increase retirement age right now. Instead, other ways should be found to find additional resources for the social insurance fund, for example, increasing wages.

At a government meeting on April 6, Karins said that Latvia will inevitably need to consider raising the retirement age. The prime minister voiced this position during a discussion on the state of the national economy and possible improvements after hearing a report on Latvia's Stability Program 2023-2026.

However, commenting on his earlier remarks about a need for a further hike of the retirement age, Karins said that this will not be a matter for the current parliament to tackle.

Welfare Minister Evika Silina (New Unity) said on Latvian Radio later that the raising of the retirement age that was started several years ago is still ongoing and that the retirement age will only reach 65 years in 2025. Silina said that she is not considering a hike of the retirement age at the moment.