One of the main problems in Latvian labour market is relatively high level of illegal employment in the state.
Therefore one of priorities of Latvian employment policy is to solve undocumented work problem more efficiently and stimulate residents to operate in formal economy by increasing net pay to those who receive small wage and increasing the minimum wage and amount of untaxed minimum thus strengthening both state control authorities and unions of social partners (labour unions, entrepreneur associations etc.).
The main documents and activities of policy planning focused on improving the situation in the field of undocumented work are as follows:
o Decree of the Cabinet of Ministers No. 197 dated April 7, 2010, "On agenda for the reduction of undocumented work 2010-2013"