Budget, Financial Services, Labour Unions, Latvia, Taxation, Wages

It is planned that the basic monthly salary of the head of the State Revenue Service would be EUR 4,030 with an option to get a bonus at 60% of the monthly salary for good performance, Finance Minister Dana Reizniece-Ozola (Greens/Farmers) told LETA.

Previously it was proposed to increase the maximum monthly remuneration to the head of the State Revenue Service to EUR 8,100, of which slightly more than EUR 5,000 would be gross basic salary with a possibility to get bonuses to 60% of the salary.

Speaking to the press after the meeting of the coalition partners, Prime Minister Maris Kucinskis (Greens/Farmers) said the coalition parties had today agreed on a tender to find a new head of the State Revenue Service.

The politicians also reviewed the State Chancellery’s proposal for the pay reform in the public administration and agreed that ”a complex approach would only be possible in 2017 by revising redundant functions and finding reserves for overall implementation in 2018”.

The pay rise only for the staff in the State Revenue Service would be "a pilot project" to be analyzed six months after the implementation.

In view of the shortage of skilled staff at the ministries, the ruling coalition agreed to give to the heads of the government agencies the right to pay 5% bonuses to the key employees within the limits of the existing budgets.

On May 30 this year Inara Petersone, who had been serving as the director general of the State Revenue Service since October 2013, tendered her resignation effective as of June 27.

A tender to appoint the Latvian State Revenue Service's new general director ended without any results as none of the four candidates shortlisted in the second round of tender was found to be fit for the next round.

It was then decided to look for candidates among top managers in the public administration who could be rotated to the top position at the State Revenue Service. Inga Kolegova, the current head of the State Environmental Service, was initially picked for a job but, citing emotional pressure and public scrutiny that extended also to her family members, she withdrew her candidacy shortly before the government was to vote on her appointment to the position of the State Revenue Service's head.

Now a new tender will be organized, using services of a personnel recruitment company, to find a new candidate for the position, and it was suggested to increase the salary to the State Revenue Service head to lure better candidates.

At present the monthly salary of the State Revenue Serv ice head is between EUR 2,000 and EUR 3,000.