Welfare Ministry plans to revise minimum wage annually

RIGA - The Welfare Ministry intends to change the current procedure for setting the minimum wage and is planning to revise its amount every year.

Since the beginning of this year, the minimum wage in Latvia is EUR 700, up from EUR 620 last year. The Welfare Ministry has drafted a new regulation for setting and reviewing the minimum monthly wage, which would abandon the current procedure and incorporate the requirements of the European Union (EU) directive on adequate minimum wages into the new regulation.

The Welfare Ministry is expected to make proposals annually on the minimum monthly wage for the following year, taking into account a range of data, including a reference value.

In order to ensure an optimal increase of the minimum monthly wage in line with the situation of the economy and regional development, a reference value of 45 percent of the average gross wage calculated by the Central Statistical Bureau (CSB) for the last available quarter has been included in the regulation drafted by the Welfare Ministry.

For example, if in the last quarter of 2023 the average monthly gross wage in Latvia was EUR 1,610, then 45 percent of the average gross wage calculated by the CSB for the last available quarter would be EUR 724.5.

However, in order to ensure that the Finance Ministry has information before the start of the budget process for a current year and the preparation of the fiscal and structural plan, which is to be submitted to the European Commission, a decision on the minimum wage for the coming year would be taken already in May.