PM: Minimum monthly wage next year - €367 or €370

The minimum monthly wage next year will be set at 367 or 370 euros a month, as opposed to the current 360 euros, said Latvian Prime Minister Laimdota Straujuma after the National Tripartite Cooperation Council meeting on Monday, reported BNS news agency on Monday.

She said that the government has not reached an agreement with its social partners on several issues in relation to next year's government budget, including on raising the non-taxable minimum income, introduction of differentiated non-taxable minimum income and the so-called solidarity tax on large salaries exceeding 4,000 euros monthly.

The prime minister noted that there are also disagreements about increase of the minimum wage next year. The minimum wage will be raised to 367 euros a month as proposed by the Welfare Ministry or 370 euros a month as proposed by the Finance Ministry.

Finance Minister Janis Reirs told the press after the meeting that the majority of additional resources in next year's budget will be allocated for defense and security, and thanks to raise of the non-taxable minimum income and introduction of differentiated non-taxable minimum income, every Latvian resident will feel a positive effect.

The government and the social partners have not reached an agreement on reducing the personal income tax rate from 23 percent to 22 percent as it had been provided by the law, but the government has decided to step back from this promise.

The final decision on the minimum wage will be made during the government's extraordinary meeting on Monday afternoon. Before that the coalition parties cooperation council will meet.

In the second quarter of 2015 average monthly gross wages and salaries in Latvia reached €815.

Seen a mistake?

Select text and press Ctrl+Enter to send a suggested correction to the editor

Select text and press Report a mistake to send a suggested correction to the editor

Related articles
Economy
Economy