Prime Minister proposes medic pay rise solution in Latvia

The Prime Minister Krišjānis Kariņš (“New Unity”) has offered government partners a solution to raise medical salaries by reallocating funds from the social budget and personal income tax, Latvian Television reported on June 16.

In an interview on the LTV broadcast “Viens pret vienu” Kariņš said he offered government partners a long-term way to increase funding for health care.

"Redistributing money from the social budget and personal income tax means 5% for healthcare.That is, without changing the tax burden, simply by redistributing this,” the Prime Minister said.

The calculations are already in place, and they show that such a step would mean significant funding for the industry as a whole.

He wants to introduce this solution as of January 1, 2021. This is currently being discussed.

Previously, a member of New Unity, Finance Minister Jānis Reirs stated that in order to ensure that salaries are raised for medics and teachers, the tax system should be reviewed, for example, by creating a health tax without increasing the total tax burden.

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