[ad_1]
As of October this year EU Member States are required to incorporate adequate minimum wage directives into their legal acts, but Latvia has not yet done so. Minimum wage Latvian employees and employers believe that the non-taxable minimum should also be urgently increased and what are the possibilities for the state budget to meet the wishes of the social partners, Monday, August 19, 12:00, on the programArguing with DelphiJournalist Andris Ozans asked Free Trade Union of Latvia President Aguirus Valdezenas, Latvian Employers’ Confederation Social security and healthcare expert Pēteri Leishkalnu and Welfare Department and Imantu Lipski, Director of the Labour Market Policy Department.
European Commission On October 4, 2022, the Adequate Minimum Wage Directive was adopted, and EU Member States have two years to incorporate it into their national legislation.
Member States with a statutory minimum wage are required to introduce a regulation setting and updating the minimum wage according to a clear set of criteria, which envisages that the statutory minimum wage be updated at least every two years (and no later than every four years in countries using an automatic indexation mechanism).
However, it is important to emphasize that the directive does not stipulate a specific minimum wage level that member states must achieve.
The aim of the directive is to ensure that workers receive a minimum wage sufficient to live a decent life, wherever they work. The social partners believe that the minimum wage should ensure a decent standard of living, reduce working poverty, promote social cohesion and upward social integration, and limit the salary difference.
The Latvian Association of Free Trade Unions (LBAS) believes that in order to achieve an adequate minimum wage level, it should be set at 50% of the national average wage. If the unions’ demands are met, the minimum wage should be raised to 810 euros by 2025.
At the same time, LBAS acknowledged that if the minimum wage is raised to 810 euros in 2025, the increase will be too fast, which will not only put pressure on entrepreneurs, the development of certain regions and industries, but also on the public sector. Therefore, LBAS recommends setting the minimum gross wage at 750 euros in 2025. The union also called for a simultaneous increase in the tax-free minimum limit from 500 euros to 600 euros and a review of its applicable limits, which have not been adjusted for two years.
On the other hand, employers had previously proposed setting the minimum wage at 40% of the latest available data for the whole year, which means 40% of the average salary in 2023 – 1,537 euros, or 615 euros, which is lower than the current minimum wage in Latvia.
Meanwhile, the Welfare Ministry proposed a compromise in the spring – equivalent to 45% of the average gross salary.
However, LBAS points out that even now, Latvia’s minimum wage lags far behind its Baltic neighbors. According to the trade unions, an agreement has been reached in Lithuania to increase the minimum wage to 1,070 euros gross per month, or 782 euros net. On the other hand, Estonia continues to act on the timetable agreed by the social partners and currently sets the minimum wage at 1,100 euros gross, or 998 euros “now” in 2025.
broadcast “Arguing with Delphi“ Latest episodes available apple and Spotify In the podcast!
Delphi followed suit Instagram or Youtube In Profile – Join to find out the most important and interesting things first!
[ad_2]
Source link
