After the indexation, the pensions will grow by an average of €18.27, while the maximum increase will be €27.5, said the Welfare Ministry’s under-secretary of state Jana Muizniece.
This year, the pension hike will depend on each recipient’s length of insurance record – the longer the insurance record the steeper the pension increase. The recalculation index will be 1.0590 for people with an insurance record of up to 29 years, 1.065 for people with an insurance record of 30 to 39 years and 1.0720 for people with an insurance record of 40 years and more.
The recalculation index for long-service pensions, disability pensions and survivor’s pensions will be 1.0590.
Budget allocations earmarked in Latvia’s budget for pension hikes are €30 million this year and €120 next year.
The average size of new pensions granted in June 2018 was €360. Most pensioners in Latvia receive from €250 to €350 in their monthly pensions.
Meanwhile the minimum gross wage in the country is €430 a month.