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Latvian government approves of a new system for calculation of minimum income level

BC, Riga, 21.10.2014.Print version
Today the government of Latvia approved of the Welfare Ministry's proposal that, starting from 2017, a new level of minimum monthly income will be adopted, which will be used in calculating, for instance, the minimum welfare amount, non-taxable income, and various benefits, informs LETA.

According to the Welfare Ministry's concept, the minimum income level will be set at 40% of median income as of 2017.

 

If the same principle was used to calculate the minimum income before, the minimum income level in 2012 would have been EUR 129, EUR 124 in 2011, EUR 119 in 2010 and EUR 125 in 2009.

 

The minimum income level will be smaller for households: while the minimum income level for one person in a household will be EUR 129 a month, for the rest of the adults in the household it will be 70% of EUR 129, and for children under 14 – 50% of EUR 129. Therefore, a household made up of two adults would have a total minimum income level of EUR 220 a month, or EUR 285 if they had a child under 14, or EUR 349 if two children, or EUR 414 if three children.

 

The government also supported the creation of a new minimum consumer basket of goods and services, which will not be associated with social security or other systems, and will be used to assess the adequacy of the minimum income.

 

The Welfare Ministry will start to work on the new minimum consumer basket of goods and services in 2017, and it could be put into practice in 2018 or 2019.






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