Gas company to sack sales reps in response to tax changes

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The Latvijas Propana Gaze liquefied gas company is planning to lay off about 185 workers due to changes changes to social contributions from 2017, reported LETA Thursday.

A letter that Latvijas Propana Gaze board member Aleksandrs Sinegubovs submitted to the Riga City Council has been posted on Riga Mayor Nils Usakovs' (Harmony) Twitter account, which says that the company is planning to lay off about 185 sales representatives.

Amendments to the law on State Social Insurance approved by Saeima Thursday say that from January 1 next year companies will have to make social contributions for all employees who are paid less than the minimum wage.

According to Sinegubovs, the company has contracts signed with sales representatives who sell gas cylinders to residents. They are paid €1 to €100 a month, depending on the number of gas cylinders they sell that month.

About 60% of the sales reps are selling gas cylinders to make a little money on the side, therefore the overall number of unemployed will not necessarily increase.

The company employs about 497 people in total.

On Thursday Saeima rejected the proposal to drop requirement for the minimum social contributions rate to be applied to all wages.

Nellija Kleinberga from the Latvian Association of Regions said that the party proposed to lift the amendments to the law providing for the minimum social contributions rate to be applied to all wages, including lower than minimum wages and wages paid to part-time workers. She said that the regulations will negatively affect NGOs, businessmen and employees.

Meanwhile, Finance Minister Dana Reizniece- Ozola (Greens/Farmers) said that Saeima social and labor affairs committee is already working to expand the groups of people the changes will not apply to, for example, retired and disabled people.

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