Latvia increases tax chief's salary

Latvia's government on Tuesday increased the salary to the head of the State Revenue Service (VID) from €3417 to €4030 a month, with bonuses of up to 60% of the salary awarded for good performance. 

At the same time, a pilot project has been started to increase pay for some employees of the country's tax service. The pay rise would be analyzed six months after the implementation.

Speaking to the press after a Monday meeting of the coalition partners, Prime Minister Māris Kučinskis said the coalition parties have agreed on a tender to find a new head for VID.

In addition, in view of the shortage of skilled staff at the ministries, the ruling coalition agreed to give to the heads of the government agencies the right to pay 5% bonuses to the key employees within the limits of the existing budgets.

According to research carried out at the behest of the State Chancery, high-ranking officials only get paid about 36% of what they would earn in similar private sector jobs. While mid-tier managers in the public sector receive less than 50% than they would be paid in the private sector.

On May 30 this year Inara Petersone, who had been serving as the director general of the State Revenue Service since October 2013, tendered her resignation effective as of June 27.

A tender to appoint the Latvian State Revenue Service's new general director ended without any results as none of the four candidates shortlisted in the second round of tender was found to be fit for the next round.

It was then decided to look for candidates among top managers in the public administration who could be rotated to the top position at the State Revenue Service.

Inga Kolegova, the current head of the State Environmental Service, was initially picked for a job but, citing emotional pressure and public scrutiny that extended also to her family members, she withdrew her candidacy shortly before the government was to vote on her appointment to the position of the State Revenue Service's head.

A new tender will be organized using services of a personnel recruitment company, to find a new candidate for the position.

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