bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 25.07.2017 | Name days: Jēkabs, Žaklīna

Reirs: ME system is good, but only in relation to the people that need it

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUEstonia’s experience shows that there can be significantly larger minimal wages and significantly lower unemployment level than what is found in Latvia, Diena was told by Welfare Minister Janis Reirs.

He explains that although the Saeima has refused the introduction of minimal social fees, Welfare Ministry intends to search for solutions to prevent the possibility when approximately 300,000 employed people in Latvia remain socially unprotected.

Reirs once again said that the idea of social fees is supportable on its own to help increase social protection of Latvian residents. He added that socially unprotected people face serious problems in the event of unemployment, because unemployment benefit is minimal at best.

«We are committed to searching for a solution. We should say, however, that Estonia’s minimal social fees system functions successfully. In Estonia, employers have to pay a specific social fee amount for each employee with whom there is an employment contract. This also applies if people are employed part-time. Estonia has it very strictly – if an employer signs an employment contract with someone, there is a specific amount the employer has to pay for that employee,» – the minister says.

Reirs adds that Estonia’s minimal wage is currently EUR 90 larger than the one in Latvia. Average minimal wage in Estonia is EUR 470 and the one in Latvia is EUR 380. On top of that, Estonia’s unemployment level is nearly two times lower than Latvia’s – 8.4% in Latvia and approximately 4% in Estonia. It is often mentioned in Latvia that raising minimal wages and strengthening social protection of employed people would result in employers, especially those in regions, reducing their number of employees, increasing overall employment in the country.

According to the minister, the fact that opinions of Unity and Prime Minister Maris Kucinskis in regards to the minimal social fees differ does not mean the government is unstable: «We have discussed this matter with the prime minister. Speculations voiced in regards to the risks to the government’s stability were unjustified. Discussions regarding conceptual matters are not a threat to the government. Although some political powers use the discussion to shake the government, this was not one such case when the government was at risk of collapse.»

«The discussion is not over yet, because the matter of residents’ social protection needs to be resolved. It is not about the collision of two concepts. 300,000 employed Latvian residents remain socially unprotected. Numbers show that social budget revenue of 2019 will be lower than expenditures. So, you see, the matter is not resolved yet,» – the minister continues.

Welfare Ministry believes the matter regarding residents’ social protection should be resolved in a complex manner. «There have been attempts claiming establishment of social fees is but another tax. It is not. It is an attempt to involve all employed people in the social protection system. There are approximately 900,000 jobs in Latvia. Approximately 600,000 employed people perform social fees in full amount. Around 300,000 people do not pay social fees in full amount.

In parallel to the social security problem it is also necessary to talk about justice. For example, an opinion has been voiced in the discussion regarding healthcare – if 300,000 people already do not pay social fees in full amount, what is the point of raising social fees? It is first necessary to make sure those 300,000 pay social fees in the first place! It is also important the keep in mind that some of those 300,000 people also receive wages in envelopes.»

Reirs emphasized that what he said does not mean he supports complete liquidation of the micro-enterprise tax regime. «The tax system is good, but it only applies to those who need it. Unfortunately, in most cases the tax system is used for tax optimization,» – said the politician.

«I know there are people who unjustifiably claim that Latvia has risen against ME and that Estonia will have ME. However, Estonia has a different model in mind – it is planned that there will be special conditions for companies whose maximum annual turnover does not exceed EUR 20,000, companies that employ no more than none person and ones that provide services only to private persons. If Latvia were to introduce such a model, there would be approximately 7,000 micro-enterprises left, which is bearable for the social budget,» – Reirs said.

Ref: 224.109.109.9984


Leave a reply

Duda to veto Polish judicial reforms

President of Poland Andrzej Duda has stated he would not announce the controversial reforms of the Polish Supreme Court and the National Council of the Judiciary passed in the Polish Sejm that have also sparked mass protests in the country.

Dairy product prices not expected to decline in Latvia soon

Prices of dairy products in Latvia will either remain on the current level or increase even more in the next couple of months. With that, there is no reason to expect price decline in the near future, predicts head of Agriculture Market Promotion Centre Inguna Gulbe.

Five insolvency administrators suspended due to criminal processes in Latvia

Five insolvency administrators have been suspended because of several criminal processes, said Director of Insolvency Administration Inese Steina in an interview to LNT 900 seconds.

Family doctors may change the form of strike if need be

Latvian Family Doctors Association could change the form of its strike of need be, as confirmed by the association’s representative Solvita Olsena.

Baltic animal rights organisations turn attention to fur farming ban in Czech Republic

Following the fur farming ban passed by the parliament of the Czech Republic, Latvian and Estonian animal rights organisations turn the attention of communities in Latvia and Estonia to the increasingly the ethical attitude of European countries to animal rights.

Toyota sales in Latvia up 25%

5,735 new Toyota cars were sold in Baltic States in the first six months of 2017, which is 33% more than last year. Toyota’s total market share in Baltics is 14.2%, BNN was informed by the company.

Number of accidents caused by tractors and size of claims on a rise

Over the course of the past several years, the number of traffic accidents caused by specialized agricultural vehicles and the size of insurance claims has grown in Latvia, as reported by Motor Insurers' Bureau of Latvia.

Businessmen offer to help fund railway works in Estonia rejected by minister

Entrepreneurs in Lääne County, Estonia, have offered the state to help with funding the reconstruction of a railway section, by attracting private money, but the offer has been rejected by Estonian Economic Affairs Minister Kadri Simson.

International Baltic Bikini military exercises to be organized in Latvia

Baltic Bikini 2017 military exercises will be taking place in Liepaja, Latvia, throughout 24 – 28 July. More than 100 Baltic and American troops will be participating together with State Border Guard and Emergency Health Service to practice survival skills, as reported by Defence Ministry.

SRS: envelope wages will be a priority this year

More than half of Latvian employers pay their employees wages below the minimal monthly amount, said Director of the State Revenue Service Tax Control Office Sandra Karklina Admine in an interview to Rīta panorama on Monday, 24 July.

Latvians hesitant to use electronic means to request benefits

So far, Latvia residents have been rather slow in the use of electronic tools to request benefits from the State Social Insurance Agency.

Orbán promises solidarity with Poland as it approves controversial court reforms

Following the criticism Warsaw has received in mass protests and from Brussels on the approval of a controversial court reform, the Prime Minister of Hungary Viktor Orbán has pledged to defend Poland in the European Union.

New Conservative Party takes away one seat from Latvian Farmers Union in Kekava

The New Conservative Party has taken away one seat in Kekava council from Latvian Farmers Union, according to provisional data of the Central Election Commission on repeated elections in Kekava’s 785 election site.

17 journalists of Turkish newspaper charged with aiding terrorist organisation

In Turkey, 17 journalists of the opposition newspaper Cumhuriyet are to be tried over charges of aiding a terrorist organisation and, if found guilty, they face up to 43 years in jail.

Week to be warm in Latvia, but some rain is still expected

At the beginning of the week, weather in Latvia will be dictated by a small cyclone with its centre above Lithuania. The precipitation zone associated with this cyclone will bring about rain to south-east parts of Lithuania, as reported by State Environment, Geology and Meteorology Centre.

BNN summary of the week: Kucinskis in Ridzene’s room and government’s rushed decisions

BNN offers a summary of this week’s topical news in a variety of categories: Change; Fight; Truth; Business and Growth.

Tourists die in Aegean Sea earthquake

A powerful quake that struck in the Aegean Sea has taken the lives of two persons in Greece, local authorities have stated.

Fashion in business: how to be heard in the modern-day world?

It would seem that nowadays strict fashion trends have «died». This is because people for ways to look beautiful and comfortable. One of the minds behind TRÉS fashion line, Enija Mugurevica shares advice how to start a business in the fashion industry from scratch and be heard and noticed in the modern-day world.

FCMC fines Norvik Banka for EUR 1.3 million and Rietumu Banka for EUR 1.56 million

Finance and Capital Market Commission in cooperation with Federal Bureau of Investigation’s Counterproliferation Center found out in a target inspection that Latvian banks – Norvik Banka and Rietumu Banka – have not followed requirements of regulations for the prevention of money laundering and terrorism funding.

Saeima approves controversial amendments to Credit Institutions Law

On Friday, 21 July, Latvian Saeima approved amendments to the Credit Institutions Law, which were previously returned to the parliament for a repeated viewing by President Raimonds Vejonis, completely unchanged.

Bank of Latvia: tax reform is a disappointment; it will not improve competitiveness

The tax reform submitted to the Saeima for approval is one big disappointment that will not improve competitiveness, said head of the Monetary Policy Office of the Bank of Latvia Uldis Rutkaste in an interview to LNT 900 seconds.

Betsafe predicts: will Duklavs remain Latvia’s Agriculture Minister?

Although Unity has asked the Union of Greens and Farmers to replace Agriculture Minister Janis Duklavs with someone else after the scandalous oligarch talks in Ridzene hotel, Duklavs will likely keep his post, according to Betsafe bookmakers. There is a 33% probability of Duklavs losing his post.

Latvian alcohol industry has an offer to increase excise tax rate

Experience shows – rapid increase of excise tax results in rapid increase of prices and rapid decline of revenue for the state treasury. Based on careful calculations, Latvian Alcohol Industry Association asks the government to stick with the current excise tax increase plan.

Air temperature to reach +24° C… +25° C in Latvia on weekend

Weather is expected to be largely dry this weekend in Latvia. Next week, however, is expected to be rainy, as reported by State Environment, Geology and Meteorology Centre.