Energy, Gas Market , Labour-market, Latvia, Markets and Companies, Taxation
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Friday, 26.04.2024, 08:17
LPG to sack 185 workers due to new social contributions system
This is due to amendments to the law on State Social Insurance approved by Saeima, which stipulate that, from January 1 next year, companies will have to make social contributions for all employees who are paid less than the minimum wage.
According to Sinegubovs, the company has contracts signed with sales representatives who sell gas cylinders to residents. They are paid EUR 1 to EUR 100 a month, depending on the number of gas cylinders they sell that month. To 60 percent of the company's sales representatives, this is opportunity to make a little money on the side, therefore the overall number of unemployed will not necessarily increase.
The company employs 497 people on the average.
As reported, Saeima yesterday decided to reject the proposal to drop requirement for the minimum social contributions rate to be applied to all wages.
Nellija Kleinberga from the Latvian Association of Regions underscored that the party proposed to lift the amendments to the law providing for the minimum social contributions rate to be applied to all wages, including lower than minimum wages and wages paid to part-time workers. She said that the regulations will negatively affect NGOs, businessmen and employees.
Meanwhile, Finance Minister Dana Reizniece-Ozola said that Saeima social and labor affairs committee is already working to expand the groups of people the changes will not apply to, for example, pensioners, disabled people.