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Wednesday 27.09.2017 | Name days: Ilgonis, Ādolfs
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Amendments come to force to establish criminal liability for envelope wages

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUOn Thursday, 7 April, amendments that establish criminal liability for paying wages that are not recorded in accounting documents larger than EUR 3,700 came into force for the Criminal Law.

The introduction of this new regulation will benefit honest businessmen, employees and the state. It will benefit all employed people for whom employers pay social insurance fees honestly, notes Justice Minister Dzintars Rasnacs.

In order to effectively combat this element of grey economy – envelope wages – experts offered a complex solution in relation to those who pay envelope wages. New sections have been added to the Latvian Code of Administrative Violations and the Criminal Law regarding criminal liability for paying wages not recorded in a company’s accounting documents. For small envelope wages, administrative liability will be applies in the form of a fine of EUR 140 to EUR 2,100. For large amounts, however, the punishment will be deprivation of freedom for up to two years, temporary deprivation of freedom, community service or a fine of up to 1,000 minimal wages (EUR 370,000 at the moment).

The introduction of a new regulation and criminal liability was conceptually supported by Finance Ministry’s Grey Economy Combating Council, which represents social partners and NGOs that stand in favour of honest competition in commercial activities.

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