Latvian unions believe that the current pace of minimum wage growth lags behind the real situation in the economy — and this is already affecting the living standards of low-income workers.
The Free Trade Union Confederation of Latvia (FTUCL) has proposed to raise the minimum wage in 2027 by at least 55 euros — to 835 euros per month. Currently, starting from 2026, it stands at 780 euros.
The unions remind that starting from 2025, the minimum wage in Latvia is calculated using the formula — 46% of the average wage from the previous year. However, in their assessment, the actual growth lags behind the income dynamics in the country. This is also confirmed by the report from the Ministry of Welfare on the situation with the minimum wage, which was discussed this week within the framework of the National Tripartite Cooperation Council.
A particular emphasis is placed on comparisons with neighbors. According to FTUCL estimates, by 2026, minimum wage earners in Lithuania will be approximately 23% more solvent than in Latvia, and in Estonia — by 8.5%. This means that even with similar incomes, the level of available goods and services in neighboring countries is higher.
Moreover, the unions draw attention to the connection between the minimum wage and the tax system. Starting this year, the non-taxable minimum has been increased from 510 to 550 euros, but according to FTUCL, these parameters need to be considered together — in order to effectively support low-income workers.
The organization also suggests revising tax benefits for dependents, emphasizing that for families, this remains one of the key forms of support.
The issue of the minimum wage for 2027 is yet to be discussed with the government and employers.
The outcome of the discussion could directly affect the incomes of tens of thousands of workers in Latvia.
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