He said that on Tuesday Latvia's government has a meeting with the social partners in which agreement on raising the minimum wage could be reached.
"[The minimum wage rise] could be €7 or €10 - it's my estimate of what the state can afford at current growth rates," said Kučinskis.
The Welfare Ministry suggestion to raise the minimum wage by €37 is an attempt to artificially boost the economy, said the Prime Minister, claiming that if wages are raised by such a degree, it could take away funds from other initiatives next year.
"It's not a magic wand – let's raise the minimum wage and we'll all live better. I'm afraid we could bring about the opposite effect," said Kučinskis.
The minimum wage in Latvia is currently €370.
Finance Minister Dana Reizniece-Ozola has turned down the Welfare Ministry offer to raise the minimum wage steeply, saying "If we raise it at all, then no more than by €10."
While Welfare Minister Jānis Reirs has claimed that Latvia's economic growth would allow raising the minimum monthly wage by €37.
