LATVIA: Ministry of Welfare offers to increase the minimum wage

The governments intention to increase the minimum wage was stated in an informative report entitled ?On the increase of monthly minimum wage in 2007? which is currently in the process of being reviewed and decided on at the National Tripartite Cooperation Sub-Council meeting. ?A rapid increase of average wages during the last two years has created a situation whereby the minimum wage is comparitively less thus reinforcing social segregation and promoting migration of inhabitants to other EU Member states. In order to increase the socio-economic situation of inhabitants it is very important to increase the minimum wage to 120 lats,? says Ms Dagnija Stae, Minister for Welfare. According to the statistical data available to the Ministry of Welfare in 2005, 82.9 thousand people (12% of employees) are payed the minimum wage or less. Of these 75.3 thousand (91%) are employed in the private sector and 7.6. thousand in the public sector. The minimum wage in 2005 is equal to a 37.9% of the average wage in 2004. According to the regulations, the plan is to increase the minimum wage so that it equals a 47% of the average wage in 2006. www.lm.gov.lv/