Welfare Minister: wage subsidy program unsuccessful in Latvia

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The subsidy program for the recruitment of unemployed people does not reach the targets and expectations, said Ramona Petraviča, Minister for Welfare (KPV LV) in an interview on Latvian Television Monday, August 17.

The Minister explained that in the salary subsidy support program, the employer receives a subsidy for the salary of 50% of the monthly salary specified for the employee for three months, but no more than EUR 430 per month. Similarly, the employer has an obligation to employ the unemployed person not less than three months after the end of the implementation of the salary subsidy support measure.

Petraviča said that the response was underwhelming. “We have received applications for 176 jobs, 111 jobs have been approved, while 67 people have started working,” the Minister said.

She pointed out that the program planned to involve 15,000 unemployed people, with €23,000 in funding.

“Obviously there will have to be new initiatives, ideas, because this is not exactly what employers expect,” said Petraviča.


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