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  • Minimum monthly wage

Amount of the minimum monthly wage within the framework of normal working time from 1 January 2020 and is 430 euro per month.

Minimum monthly wage since 1 January 2018 is 430 euro per month.

There is a decentralised wage setting system in Latvia and one minimum wage level that is binding for all employers. Main provisions regarding minimum wage are regulated by Section 61 Paragraph two of the Labour Law.

In compliance with the Law, the wage shall not be less than the minimum level determined by the state.

In addition to the national regulation of the minimum wage, social partners may specify wages in the relevant company or industry in collective agreements with employers or in the industry. According to the principle of labour rights that a collective agreement may not impair the status of an employee in comparison with laws and regulations (Section 6 of the Labour Law), thus only a higher wage may be specified in collective agreements.

The minimum wage is reviewed regularly in Latvia taking into account several factors, in particular, the economic situation, productivity changes, the labour market development, the unemployment level and the capacities of the central budget. Each year the Ministry of Welfare together with other partners, like the Ministry of Finance, the Ministry of Economics, the State Chancellery, the Union of Local and Regional Governments of Latvia, the Free Trade Union Confederation of Latvia and the Latvian Employers' Confederation, evaluates the economic situation in the country and agree on the amount of the minimum monthly wage. The amount of the agreed minimum monthly wage and the date for introduction must be discussed with social partners at the Social Security Sub-Council and approved at the meeting of the National Tripartite Co-operation Council.

The minimum monthly wage within the scope of normal working time, the minimum hourly wage rates, as well as procedures for the review of the minimum monthly wage is determined by the Cabinet of Ministers:

Regulation of the Cabinet of Ministers No.656 of 24 November, 2015 “Regulations Regarding Amount of the Minimum Monthly Wage within the Framework of Normal Working Time and Calculation of the Minimum Hourly Wage Rate”

Regulation of the Cabinet of Ministers No. 563 of 18 August, 2016 “Procedures for the Specification and Review of the Minimum Monthly Wage”

More information on National Minimum monthly wage by year is available here.

For more information on Wage Data, visit website of the Central Statistical Bureau.