Changes to Unemployment Benefit Rules in Latvia – It’s Now Easy to Lose It 0

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Changes to Unemployment Benefit Rules in Latvia – It’s Now Easy to Lose It

Starting April 1, unemployment status and the right to benefits in Latvia can only be maintained with a COMPLETE absence of any income – this is stipulated by the amendments to the Law on Support for the Unemployed and Job Seekers coming into effect.

What Exactly Is Changing

Only until March 31, 2026, a self-employed person registered with the State Revenue Service can simultaneously earn income and maintain unemployment status if their monthly income does not reach the minimum wage and social contributions (10% for pension) are made.

Previously, it was possible to receive both unemployment benefits and payment for temporary work (with a time limit). From now on, if an unemployed person takes temporary work or receives a royalty fee, the benefit payment will be suspended during that time.

Nuances Regarding Royalties and Temporary Work

The new conditions apply to all tax payment regimes, including recipients of royalty payments. That is: unemployment status and benefits will only be granted with zero income.

If, during unemployment status, a person earns income as an employee or self-employed (including from royalties), they must inform the State Employment Agency (SEA, NVA) within ONE working day.

If the new job is not reported (and status is lost), further benefit payments will cease, and any benefits already paid during the employment period must be returned to the state budget.

Simultaneously, starting April 1, longer periods of short-term employment will be established, counted from the day of receiving unemployment status: for employees – up to 92 days, for self-employed – up to three months.

However, if an unemployed person takes temporary work or receives a royalty fee and reports it to the SEA, the benefit payment will be suspended during the work period. When the work ends, the benefits will resume and be extended for as many days as the person worked.

The procedure for short-term work without losing status is also clarified: it is proposed not to limit the number of such periods (currently – two times within 12 months), while maintaining an overall limit – up to 60 days during unemployment for employees or up to two months for self-employed (with notification to the SEA).

About Documents and Calculations

The SEA adds practically important clarifications:

It is impossible to obtain unemployment status in the month during which income from economic activities or royalties was received. However! An exception is made if the author's work was completed before applying for unemployment status. However, in this case, documents confirming the actual period of work performed (contract for royalties, transfer act, etc.) must be provided.

Examples of Temporary Employment

  1. Janis receives unemployment status on April 1, but on April 10 informs the SEA that he has signed an employment contract from May 1 to May 31. During the temporary work period, Janis retains his unemployment status, but unemployment benefits for that period are NOT paid to him. After 31 days of work, Janis will still have the opportunity to work for a certain period of up to 61 days without losing unemployment status.

  2. Anna is a "person engaged in economic activity" who pays taxes under the general procedure. She knows that there will be no income in April, so she applies for unemployment status on April 1, 2026. By applying for this status, Anna confirms that she is not working and not earning income. She is assigned unemployment status. However, in May, Anna reports that she plans to earn income from economic activity in June. Her unemployment status is maintained, but unemployment benefits for June are not paid.

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