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Wednesday 22.11.2017 | Name days: Aldis, Alfons, Aldris
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Childcare benefit to be increased to LVL 120 in Latvia

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUStarting with January 1, 2014, childcare benefits in Latvia will be increased to LVL 120 (current rate is LVL 100). All parents who do not receive parent benefits or maternity benefits will be able to apply for this state support for children up to the age of 1.5 years.

This is provided by amendments that were conceptually agreed upon by the Latvian government on Tuesday, October 15.

A number of other changes have been agreed upon as well. These changes will affect socially insured parents. It is planned to extend benefit payment period for socially insured parents with children up to the age of 1.5. Also, it will be allowed to pay an extra amount of 43.75% of the recipient’s gross salary, Welfare Ministry reports.

It is also planned to provide an additional 30% to parents’ benefits if one of the parents starts working or gain income from self-employment during the period of being paid childcare benefit. In addition to that, one of the parents will be able to receive childcare benefits of LVL 120. For example, if one of the parents is employed and has a gross salary of LVL 450, he or she can also receive LVL 120 +30% from provided benefit.

Plans include setting a new transition period for people who were allocated childcare benefits of 70% prior to September 30, 2014. This means that parents (who are not employed) will continue to be paid childcare benefits of the same amount until their child turns 1 year old.

If a person is paid childcare benefit amount provided prior to December 31, 2013 below the minimum level and its payment continues after January 1, 2014, the State Social Insurance Agency (VSAA) will recalculate the amount of allocated childcare benefits after January 1, 2014.

At the same time, Welfare Ministry notes that the proposed solution may create additional risks for specific groups of residents. For example, it could negatively impact the ability of women to come back to work after maternity leave. This could also potentially create a number of socially insecure people in the country.

According to August data of VSAA, there were 11,754 people in Latvia who were being paid childcare benefits in 2013. That of 2012 was 10,152 and 10,775 in 2011.

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