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Saeima concludes work on amendments to Social Insurance Law

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUOn Wednesday, 7 September, Saeima’s Social and Employment Matters Committee supported in the final reading amendments to the State Social Insurance Law to improve the social insurance system and resolve a number of problems in this sector.

Amendments approved by the committee are intended to cancel regulations that govern the social insurance for people paying fixed personal income tax, because starting from 2016 there will no longer be an option to pay fixed personal income tax, as reported by Saeima’s press-service.

There are many recorded cases when people whose social fees are paid by the state (in cases of unemployment, maternity, etc.) turn out to be also employed in another country, where they also pay taxes. Thereby the person is social insured in two countries at the same time even though the law states that social insurance fees from the state budget are not to be performed if a person works abroad. With that, the draft provides State Social Insurance Agency the right to revoke a person’s social insurance payments from the state budget if the agency receives information about said person’s employment in another country.

Amendments also state that in cases when social insurance fees are mistakenly made in another EU member state, Eurozone state or Switzerland and are then transferred to Latvia, these fees are not applied with delay penalties.

Amendments to the law also allow self-employed people to correct their self-employment report one a month.

In order to ensure effective recovery of overpaid social insurance services, it is planned to clarify regulations regarding the recovery of overpaid fees.

Amendments to the State Social Insurance Law still need to be reviewed by the Saeima in the third reading.

Ref: 102.109.109.6998


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