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International Internet Magazine. Baltic States news & analytics Wednesday, 23.09.2020, 15:39

Welfare Ministry in Latvia proposes to increase base for old-age pension to EUR 163

BC, Riga, 07.08.2020.Print version
In response to the Constitutional Court's ruling, the Welfare Ministry proposes to increase the base for old-age pension from the current EUR 80 to EUR 163, Welfare Minister Ramona Petravica (KPV LV) told the press today, cites LETA.

For persons with the third disability category, the base could be raised from EUR 80 to EUR 163, for persons with second disability category - from EUR 112 to EUR 228, and for persons with first disability category - from EUR 128 to EUR 260.80.

According to the estimates draw by the ministry, up to EUR 150 million would be needed in 2021 to increase social benefits, the minimum old-age pension and disability pension.

Of the five cases initiated at the Constitutional Court by the chief ombudsman, two are still pending. "We have been proactive, working on amendments on the minimum disability and old-age pension without waiting for the court ruling," said Petravica.  She said that the Welfare Ministry is currently working on amendments to seven laws in total.

Increase of these benefits should be viewed in the context of raising the minimum wage, which, according to the Welfare Ministry's proposal, should be increased to EUR 500 as of next year.

The minister explained that in order to ensure implementation of the Constitutional Court's decisions, the guaranteed minimum income and income level threshold for poor persons, as well as social insurance benefit for senior citizens and persons with disability should be raised to the level required by the Constitution. The social security system should be fair, motivating and aimed at sustainability of the state.

Thus, the guaranteed minimum income level should be raised to EUR 109, and the threshold of a poor person to EUR 272. Housing benefit should be separated, thus the guaranteed minimum income would cover costs of food, clothing and other necessities. 

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