The Saeima commission unanimously supports the increase of the minimum wage

The Social and Labor Affairs Commission of the Saeima unanimously supported the amendments to the Labor Law, which provide for an increase of the minimum wage from 500 to 620 euros from January 1, 2023, for advancement in the second reading. Also, the amendments envisage increasing the minimum wage to 700 euros from January 1, 2024. No proposals were received for the second reading. The parliamentary secretary of the Ministry of Welfare, Evita Zālīte-Grosa (K), stated in the commission on Friday that the minimum wage has been discussed for years, but the National Council for Tripartite Cooperation (NTSC) is unable to agree on this issue. “This means that time is moving forward, we don’t know how long the government will be formed, but everyone is talking about the need for this minimum wage. If we do not accept these amendments now, then in the end the ministries and entrepreneurs will not know in time what to expect. the length of these questions during inflation is complete madness,” said Zālīte-Grosa. Pēteris Leiškalns, social security and health care expert of the Confederation of Latvian Employers (LDDK), pointed out that the minimum wage should be raised, it will definitely be raised and basically it will happen “within the budget package”. “NTSP examines the issue within the framework of social dialogue, that is, trade unions and employers discuss matters together with the Cabinet of Ministers, and the Cabinet of Ministers makes a decision within the framework of the budget package. That’s how it has been and how it will continue to be,” emphasized Leishkalns. LDDK has always indicated that, in accordance with the social dialogue, an algorithm should be agreed upon once, so that the minimum wage is automatically indexed every year, just like the salaries of public officials and other persons employed by the state. “The minimum wage increase must be considered within the framework of social dialogue and it will definitely take place this year. It should not be transferred to the parliament those matters which, according to the EU directive, must take place within the framework of social dialogue,” emphasized Leishkalns and pointed out that this issue can be returned to when discussing the preparation of the budget. The representative of the Latvian Chamber of Commerce and Industry, Kristīne Robežniece, stated that she agrees with Leiškalna’s comment that the suggestion to raise this minimum wage is understandable, however, the process of examining the issue should be taken into account, so it should take place in discussions with social partners. She also pointed out that the minimum wage is tied to various types of financing. The Commission will ask to include these amendments in the agenda of the October 13 Saeima plenary session. The amendments are expected to be adopted in three readings. The deadline for submitting proposals before the third reading will be five days. The amendments to the law were submitted by “Conservative” MPs Krišjānis Feldmans, Sandis Riekstiņš, Jānis Butāns, Reinis Znotiņš and Evita Zālīte-Grosa. The amendments provide that the government should adopt an official decision on increasing the minimum wage in the relevant regulations of the Cabinet of Ministers. Deputies point out that increasing the minimum wage is one of the tools for reducing working poverty – especially in conditions of rising prices. Politicians note that the minimum wage in Lithuania is 730 euros and in Estonia – 654 euros.

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