Minimum income in Latvia may be changed
The OECD, an international organization whose member countries develop and coordinate economic and social policies, has proposed revising the minimum income in Latvia every year. The changes will come into force in 2023. Representatives of the organization said that they have already begun working with the relevant ministry. The working group has begun to study the situation in the labor market and trends in social policy. Based on this analysis, recommendations will be issued.
The decision on the annual review of the minimum income for the citizens of Latvia is due to the intention to strengthen measures to eliminate poverty. This problem particularly affects the elderly category of the population.
Last year, the government increased minimum allowances and pensions, and the income threshold for low-income status was revised.
The OECD also noted the relevance of the problem of gender stereotypes, in this direction active actions are taken to eliminate the oppression of people on this basis. Soon anti-discrimination measures will be introduced. Thus, it will be possible to reduce the wage gap between men and women. It should be noted that the difference in the labor market, in this case, is the highest among the countries of the European Union.
The issue of demography deserves special attention. Latvia’s population has significantly decreased over the past 30 years. There are several reasons for this, including migration and low birth rates. Moreover, although life expectancy in the country is growing, it is still considered quite short.At the same time, the authorities want to reconsider the retirement age in the direction of increasing, but the issue is planned to raise not earlier than 2025. In this case, it is also important to take into account the health indicators of people after 65 years of age.
Latvia provides support for different categories of citizens, in order to receive social assistance it is necessary to fill out an application at the social service. In order to obtain low-income status, the amount of guaranteed income must be 109 euros for one family member and 76 euros for the rest.
As for the threshold for a household in need of social support, it is at 272 euros for the first family member and 190 for the others. Needy statuses are assigned for a period of 3 and up to 6 months.
A family is considered low-income if the average income per person does not exceed 305 euros. In case of disability or retirement age, this threshold should not exceed 436 euros.
The Latvian government is constantly increasing the allowances for those in need, both regular and one-time. Thanks to such state policy the population’s standard of living is growing and with it the trust in the government.