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Latvia - Minimum Wages - 2009


LAST UPDATE

08 June 2009

SOURCES


Name of Act

Labour Law,
of 20 June 2001, Zinotajs. 2001-08-09. No. 15, p. 142-212 as amended to 21 September 2006.

Name of Act

Regulation No. 592 regarding the Minimum Monthly Salary and the Minimum Hourly Wage Rate, adopted 28 August 2007.

Name of Act

State Labour Inspection Law, of 13 December 2001, Zinotajs, 2002-01-24, No. 2, pp. 235-239 as amended to 1 January 2008.

Name of Act

Regulation No. 791 regarding the Minimum Monthly Salary and the Minimum Hourly Wage Rate, adopted 23 September 2008 [Only available in Latvian]

Name of Act

Constitution of the Republic of Latvia,
of 15 February 1922, as amended to 3 May 2007.

Name of Act

Regulations on the National Tripartite Cooperation Council of 30 October 1998 (Latvijas Vestnesis website) (Unofficial English translation, 7 p.).

Name of Act

Order No. 356 of the cabinet of Ministers "On the Conception of Minimum Wage", of 28 May 2003

LEGAL DEFINITIONS


Employee/worker

Means a natural person who, on the basis of an employment contract for an agreed amount of remuneration, performs specific work under the guidance of an employer.
Labour Law §3

Employer

Means a natural or legal person, or partnership with a legal capacity that, on the basis of an employment contract, employs at least one employee.
Labour Law §4

MINIMUM WAGE FIXING


Procedure


Government decides after tripartite or bipartite body discussions/recommendations

Minimum wage rates are determined by the State.
The National Tripartite Co-operation Council must be consulted concerning bills, draft regulations and any other normative Acts being discussed by the Cabinet. In particular, the Council must be consulted and provide the government with proposals concerning employment issues and the implementation of ratified ILO conventions and Latvia has ratified Convention 131, Minimum Wage Fixing Convention of 1970. The Council is made up of representatives of the Cabinet of ministers, representatives of the Free Trade Union Confederation and representatives of the Employers` Confederation.
Labour Law §61
Regulations on the National Tripartite Cooperation Council of 30 October 1998 §1, 3

Minimum wage set through decentralized collective bargaining

Minimum wage rates may be set in collective agreements on the condition that they are higher than the national minimum wage rates stipulated by the government. Collective agreements may be extended to workers in a sector, other than those who were party to the original contract, provided that the workers’ and employers’ organizations that entered into the contract, employ more than 60% of the employees in that sector.
Labour Law §18(4)

Criteria


Level of wages and incomes in the country

The "Conception of Minimum Salary of the Cabinet of Ministers" 28 May 2003, sets forth the basic principles for determining and revising minimum wage rates. The aim of this Order is to increase the minimum wage rate gradually over the next seven years so that it represents 50% of the average wage.
Order No. 356 of the cabinet of Ministers "On the Conception of Minimum Wage"

Coverage


Scope

The Labour Law of 2001 covers all employees and employers, irrespective of their legal status, provided that their relationship is based on an employment contract.
Labour Law §2

Specific minimum wage rates


» Specific minimum wage by occupation

No

» Specific minimum wage by sector

No

» Specific minimum wage by region

No

» Minimum wage levels for specific categories of workers


» Youth

A separate minimum hourly rate is established for workers under 18 years of age, this rate may not be less than the hourly rate set for adult workers. In 2009, the hourly wage rate for youth was set at 1,239 Lats (in 2008: 1,100 Lats).
Regulation No. 592 regarding the Minimum Monthly Salary and the Minimum Hourly Wage Rate §3
Regulation No. 791 regarding the Minimum Monthly Salary and the Minimum Hourly Wage Rate §3
Labour Law §63

» Disabled

A separate minimum hourly rate is established for workers who are subject to special risk and whose normal working time is seven hours per day and 35 hours per week. In 2007, the hourly wage rate was set at 1,239 Lats (in 2008: 1,100 Lats).
Regulation No. 592 regarding the Minimum Monthly Salary and the Minimum Hourly Wage Rate §4
Regulation No. 791 regarding the Minimum Monthly Salary and the Minimum Hourly Wage Rate §4

» Piece-rate workers

None - The Constitution states that every employed person has the right to receive remuneration that is not less than the minimum wage established by the State.
Constitution of the Republic of Latvia §108

Level


Minimum wage level(s) in national currency

160 Lats per month (1 January 2008)
180 Lats per month (1 January 2009)
Regulation No. 592 regarding the Minimum Monthly Salary and the Minimum Hourly Wage Rate §2
Regulation No. 791 regarding the Minimum Monthly Salary and the Minimum Hourly Wage Rate §2

Last minimum wage update

1 January 2009
Regulation No. 592 regarding the Minimum Monthly Salary and the Minimum Hourly Wage Rate

In-kind allowances

Normally all remuneration should be calculated and paid in cash. However, if both the employer and the employee specifically agree, payment non-cash payments may be made.
Labour Law §70

Rate of payment


» Hourly

Yes - All adult workers and workers under the age of 18.
Regulation No. 592 regarding the Minimum Monthly Salary and the Minimum Hourly Wage Rate §2, 3
Regulation No. 791 regarding the Minimum Monthly Salary and the Minimum Hourly Wage Rate §2, 3

» Monthly

Yes - All adult workers.
Regulation No. 592 regarding the Minimum Monthly Salary and the Minimum Hourly Wage Rate §2
Regulation No. 791 regarding the Minimum Monthly Salary and the Minimum Hourly Wage Rate §2

Scheduled frequency of adjustment

The Law provides for no specified period after which the minimum wage has to be adjusted.

Enforcement mechanisms


Labour inspection

The State Labour Inspectorate ensures that all labour laws and regulations, including those regarding minimum wage, are enforced.
State Labour Inspection Law §3

Results generated on: 01st November 2014 at 05:46:47.
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