The Ministry of Welfare (MoW) proposes reforming and significantly improving the parental benefit provided to parents during the early stages of a child’s life. The aim of the reform is to make the state support system simpler, clearer and more financially generous, while providing greater flexibility in combining work and family life.
“Under the current system, parents have to navigate two different benefits, choose the parental benefit payment period as early as the time of the child’s birth, and understand how the two benefits interact with each other. The new approach would eliminate this complex system by introducing a single parental benefit with one unified payment period and simpler eligibility conditions,” emphasises Minister of Welfare Reinis Uzulnieks.
The MoW proposes introducing a single parental benefit as of 1 January 2028, replacing the two existing benefits. The benefit would be paid for 548 days, instead of the current two payment periods of 13 and 19 months. For all socially insured persons, the income replacement rate is planned to be set at 70% (currently 60% or 43.75%, depending on the payment period selected).
A minimum benefit amount would also be established, linked to the median income and therefore subject to regular review. The reform would also retain, as a permanent provision, the option to receive 75% of the benefit while continuing to work.
An estimated additional €9 million in funding per year would be required to implement the reform.
The reform was presented to the Demographic Affairs Council, which supported further development of the proposed solution. The Council instructed the Ministry of Welfare to prepare the necessary legislative amendments for implementation of the reform by 1 November 2026.