Work and Wages

Minimum Wage

In accordance with article 107 of the Constitution, "every employed person has the right to receive, for work done, commensurate remuneration which shall not be less than the minimum wage established by the State, and has the right to weekly holidays and a paid annual vacation."

The minimum wage in Latvia is determined by the State. The National Tripartite Cooperation Council has to be consulted concerning employment issues and the implementation of ILO Conventions. The Council is made up of the representatives of Cabinet Ministers, representatives of Trade Union Confederation and representatives of Employers' Confederation. Minimum wages can also be set (higher than the government stipulated national minimum wage) through sectoral collective agreements. These agreements are extendable to other workers in the sector, if the original parties of the contract employ more than 60% of the workers in that specific sector.

The Concept of Minimum Wage Order by the Cabinet Ministers, 2003 sets forth the basic principle of determining and revising the minimum wage rates from 2004-2010. The Order aimed at increasing the wage rates gradually in the years 2004-2010 so that it represented 50% of the national average wage. This Order was repealed in 2011. A new Order No. 390 now elaborates the procedure for determining and reviewing the monthly minimum wage.  

Statutory minimum wage in Latvia is not determined on the occupational, sectoral or regional level. However, national minimum wage differs by age and exposure to particular risks.

Minimum wage is generally reviewed on annual basis. The criteria for update in the minimum wage rate include changes in the tax system (personal income tax rate, rate of mandatory state social insurance payments), minimum wages in the other Baltic states and the average annual value of minimum consumer basket per month calculated by the Central Statistical Bureau.

State Labour Inspectorate is responsible for compliance with the provisions of Labour Law and other regulations including minimum wages. In the case of non-payment of minimum wage, a fine is imposed on the employer. Such sanctions are part of the Latvian Administrative Violations Code. 

Sources: §107 of Latvian Constitution of 1922, reinstated in 1991, last amended in 2016; §61 of Labour Law 2001, last amended 2012; Regulation No. 665 regarding the Minimum Monthly Salary and the Minimum Hourly Wage Rate, adopted on 27 August 2013; Cabinet Order No. 365 on the Concept of Minimum Wage, adopted on 28 May 2003; §41 of the Latvian Administrative Violations Code; Cabinet Order No. 390 on the Procedure for Determining and Reviewing the Monthly Minimum Wage, adopted on 17 May 2011

For updated minimum wage rates, please refer to the section on minimum wages. 

Regular Pay

Work remuneration is the regular pay for work payable to a worker and which includes a salary and supplements specified under statutory provisions, collective agreement or employment contract as well as bonuses and other kinds of payments related to work.

Employers are required to pay workers the remuneration at least twice a month unless the parties have agreed on payment of remuneration once a month. If the payment date for work occurs on a weekly rest day or a public holiday, the work remuneration is paid before the relevant date. Work remuneration is paid in cash however employer can make in-kind payments as work remuneration only if the parties have specifically agreed. When making payment for work, an employer has to issue a written calculation of work remuneration (Pay slip) which has the following information: work remuneration; taxes deducted; mandatory social insurance payments; hours worked including overtime hours, night hours and work on public holidays. Employer has duty to explain this calculation on request by an employee.

Sources: §59 & 69-71 of Labour Law 2001, last amended in 2017

Regulations on Work and Wages

  • Latvijas Republikas Satversme, pieņemta 1922.gadā, atjaunota 1991.gadā, pēdējo reizi grozīta 2007.gadā / Latvian Constitution of 1922, reinstated in 1991, last amended in 2007
  • Darba likums, pieņemts 2001.gadā, pēdējo reizi grozīts 2017.gadā / Labour Law 2001, last amended 2017
  • Ministru kabineta noteikumi Nr.665. "Noteikumi par minimālo mēneša darba algu un minimālo stundas tarifa likmi", stājās spēkā 2013.gada 27.augustā / Regulation No. 665 regarding the Minimum Monthly Salary and the Minimum Hourly Wage Rate, adopted on 27 August 2013
  • Ministru kabineta 2003.gada 28.maija rīkojums Nr.365 par "Koncepcija par minimālo darba algu" / Cabinet Order No. 365 on the Concept of Minimum Wage, adopted on 28 May 2003

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