Minimum income threshold set to rise regularly in Latvia

Take note – story published 1 year ago

The setting of guaranteed minimum income thresholds in Latvia will in future be defined as a percentage from the median minimum income. This will take effect as of July 1, 2023. Starting in 2024, they are scheduled to be reviewed in January each year, the Ministry of Welfare (LM) said about the changes accepted by the government on January 24.

The decision means that both minimum pensions and state social security benefits will increase.

Currently, the smallest guaranteed income threshold is €109, rising to €125 from July.

Although the amount of the increase is not very large, the fact that these amounts are increased is extremely important, said the Minister for Welfare, Evika Siliņa (New Unity).

“It will apply to more people at risk of poverty. Both the method of setting these thresholds and the way in which minimum income thresholds will be revised will change. They are currently reviewed every three years. In the future, it will be linked to the household's average income in Latvia and the guaranteed minimum income of 20% of these thresholds will be determined. We will review it once a year,” the minister said.

Raising guaranteed minimum income thresholds will have a positive impact on 100,000 residents.

To increase all minimum income thresholds, including 30% co-financing for municipalities, additional funding has been found in the national budget – EUR 10.4 million this year, but will require at least twice that in 2024.

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