Latvian employers request incentives for workers' education

On August 7, the Latvian Employers' Confederation (LDDK) sent an invitation to the Ministry of Education and Science (IZM) to encourage changes related to tax incentives available to the employer to cover the higher education costs of the employee.

Director General of LDDK Kaspars Gorkšs stated: “Development of high-quality human capital is one of the priorities of the LDDK and its members, and the changes proposed by the LDDK can be called the hygiene of the law, which would motivate all those involved in education and the labor market for targeted growth. This would raise the qualifications of employees and boost their competitiveness in the labor market in line with today's demands."

The current arrangement provides that the salary tax does not cover the employer's training costs in order to acquire, improve or expand the skills and knowledge needed in the work, profession, position or trade. For the acquisition of general and higher education, however, this tax must be paid, both for the personal income tax and for the mandatory state social insurance contributions.

In the view of the LDDK, it is necessary to extend the scope of incentives to encourage employers to invest in higher education, including micro-skills, by indirectly promoting the involvement of employers in improving the skills of employees, which is necessary to promote the availability and economic transformation of qualified professionals.

LDDK stated that in Latvia, the status of higher education guarantees a certain quality standard which is important for the human capital competitiveness growth.

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