Analytics, Employment, Financial Services, Latvia, Legislation, Wages

As reported, the government decided yesterday to increase the monthly minimum wage from EUR 320 to EUR 360 starting January 1, 2015.

Mengelsone said that by signing the Tax Policy Strategy 2015-2017 with the Finance Ministry on October 1, the Employers' Confederation also pointed to the necessity to gradually increase the monthly minimum salary.

"In drawing up the Tax Policy Strategy, we indicated that the recommended growth threshold should be at least 10 percent a year," Mengelsone said.

According to her, the decision to increase the monthly minimum wage will help gradually reduce income inequality in society. She also added that after the monthly salaries are increased, there will be a chance for a slight increase in unemployment in low-wage jobs.

"We are certain that this will be an insignificant increase, and that raising the minimum wage will be a positive move," Mengelsone said.

As reported, the minimum wages are to be increased in all three Baltic States in 2015: in Latvia – from EUR 320 to EUR 360, in Lithuania – from EUR 290 to EUR 300, in Estonia – from EUR 355 to EUR 390.