No cap on maternity benefits

  • 2009-05-27
RIGA- The ruling coalition parties announced that no ceiling will be imposed on maternity benefits. These benefits will only be paid to parents who do not work.

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

The government will act in accordance with the principle of legitimate expectation, said Dombrovskis. He also acknowledged that the government will be able to allot money necessary to pay the maternity benefits during the transitional period.

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

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