The Saeima Proposes to Include Childcare Period in Employment Record 0 14

The opposition party "Latvia First" (LPV) has submitted amendments to the law "On State Pensions," proposing to fully account for the period of childcare until the child reaches the age of two in the insurance record, regardless of the actual contributions made to the state budget.

The LPV explains that the current legal regulation stipulates that the period of parental leave is counted in the insurance record to a limited extent — until the child reaches one and a half years of age, while the payment of social contributions during this period does not always ensure full accumulation of pension capital.

In practice, this creates situations where individuals caring for a child until the age of two find themselves in a less favorable position regarding the amount of old-age pension, as part of this period is not fully accounted for in the calculation of insurance record and pension capital, according to the LPV. The political force notes that the aim of the bill is to ensure the inclusion of the entire period of childcare until the child reaches two years of age in the insurance record.

It is also proposed to establish the obligation of the state to make social insurance contributions during this period and to reduce social inequality arising from childcare. The LPV wants the contribution base to be no lower than the average salary established in the country for social contributions in the previous year. The party also suggests that the Cabinet of Ministers should determine the procedure and amount of these contributions.

The party proposes to establish that for individuals who have taken parental leave before the law comes into force, this period will be recalculated and included in the insurance record according to the new conditions.