LATVIA: Ministry of Welfare wants to take the roof off child care benefits

The Ministry of Welfare wants to develop a child-care benefit system with no restrictions. This would be made possible by substituting its source of finance.

From now on, parents who were employed and made social insurance contributions up until the birth of their child will be able to access child benefits derived from a social insurance special budget funded by their social contributions. This will mean that either parent can apply for child care benefits to an amount equal to their previous income (after tax).

Parents who were unemployed prior to the birth of their child and who have thus not made social insurance contributions will recieve 50 lats a month which will be paid from the states basic budget.

These intentions are still to be approved by the government; on approval the Ministry of Welfare will immediately start to work on implementation of planned changes.

According to existing legislation parents (or guardians of a child) who are employed can request benefits for their child until the age of one for an amount equal to their former income (after tax) but not less than 56 lats a month and not exceeding 392 lats a month.

While if either of the parents (or guardians) are unemployed the child care benefit is 50 lats a month.

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