Currently the minimum monthly wage in Latvia is €430, in Lithuania it is €555 and in Estonia €540. In order to improve competitiveness and reduce the shadow economy, Latvia plans to raise the minimum monthly wage to €500 in 2021.
The report emphasizes that raising the minimum monthly wage is an important incentive to support low income earners. "It is important not only for reducing inequality, raising the minimum wage will also reduce the shadow economy and increase budget income," said the ministry.
The government will also consider raising the differentiated non-taxable minimum.
"The number of employees has increased 1.4% in the first half of the year, while the average gross wage has increased by 7.7%," the Finance Ministry said, adding that personal income tax revenue projection for January-July has been fulfilled at 107.2%.
