Analytics, Financial Services, Latvia, Legislation, Shadow economy, Wages

International Internet Magazine. Baltic States news & analytics Friday, 23.10.2020, 02:16

Recipients of unreported wages in Latvia receive by EUR 400 less in sick benefits

BC, Riga, 21.09.2020.Print version
Recipients of unreported wages receive by EUR 400 less in sick benefits than those who pay all taxes, said State Revenue Service general director Ieva Jaunzeme in an interview with the Latvian public radio, cites LETA.

"Those who receive wages in envelopes, get by EUR 400 less in sick benefits than those who pay all taxes. It means that a person actually robs himself when agrees on being paid unreported wage," she said.


Jaunzeme said that even though companies are aware that the State Revenue Service may inspect them, continue to pay illegal wages and then complain about high fines. 


Jaunzeme also said that there are still employees who think that it is better to economize on taxes now than pay all the taxes, saying that they will not live up to retirement pension.


"The time of the crisis showed that there are no compensations for that," she said.






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