Budget, Financial Services, Latvia, Legislation

The restrictions envisage that if a person receives sickness, maternity, paternity or unemployment benefits which exceed LVL 11.51 per day, then they will be limited to LVL 11.51 plus 50% of the amount above LVL 11.51, writes LETA.

The government predicts significant social budget deficit in the next few years. Therefore the restrictions will ensure the stability of social insurance system and society's welfare.

The restrictions will save an additional LVL 25.83 million in the state budget in 2013 and LVL 26.42 million in 2014.

1,215 residents received maternity benefits last year. 591 received paternity benefits, 12,945 – parental benefits, 15,789 – sickness benefits, and 60,316 – unemployment benefits.

As reported, Finance Minister Andris Vilks (Unity) previously told reporters that the European Commission and the international lenders demand that restrictions should remain in force until Latvia joins eurozone.