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Social contributions to be raised 1 pp to ensure financing for health care sector in Latvia

BC, Riga, 28.07.2017.Print version
Mandatory social insurance contributions will be raised by 1 percentage point starting from next year, and this revenue will be used for financing health care sector, according to amendments to the Law on State Social Insurance that Saeima adopted in the final reading on July 27th, cites LETA.

The government coalition parties agreed earlier that the social insurance contributions will be raised by 1 percentage point – 0.5% for contributions paid by employers, and 0.5 for employees. So in the future, mandatory social insurance contributions will amount to 35.09% – 24.09% paid by employer, and 11% paid by employee.

 

Increase of the mandatory social insurance contributions will ensure additional EUR 84.6 million to the health care sector next year, EUR 98.1 million in 2019, and EUR 103.9 million in 2020.

 

The amendments also provide that employees for which the general mandatory social insurance contribution is made, will be subjects to health insurance and will have the right to receive government-funded health care services.

 

Prime Minister Maris Kucinskis on July 5 gave a task to Health Minister Anda Caksa in cooperation with the Finance Ministry, the Welfare Ministry and other responsible institutions, social partners and NGOs to prepare a bill on health care financing and submit it to the Cabinet of Ministers by August 30.






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