Discussions about the next increase in the minimum wage have begun in Latvia. While the Ministry of Finance proposes raising it to 820 euros in 2027, trade unions demand a higher level, and some politicians are already talking about a minimum wage above 900 euros.
Against the backdrop of preparing a new state budget, Latvia is once again discussing an increase in the minimum wage, writes Latvijas Avīze.
According to the Ministry of Finance's informational report on tax and budget policy, the minimum wage is planned to be raised from the current 780 euros to 820 euros in 2027, and then to 860 euros in 2028.
However, trade unions believe that this is not enough. The Latvian Free Trade Union Confederation demands that the minimum wage be set at 835 euros already in 2027.
The reason for the dispute is related to the new system for calculating the minimum wage, approved by the government in 2024.
Now, its amount should be based on 46% of the average gross salary in the country.
This figure is based on the EU directive on adequate minimum wages, which recommends setting the minimum wage level in the range of 40–60% of the average salary.
The problem is that the average salary in Latvia continues to grow rapidly. According to the Central Statistical Bureau, in 2025, the average gross salary reached 1815 euros.
Against this backdrop, the current minimum wage of 780 euros constitutes only about 43% of the average salary, rather than the stipulated 46%.
In fact, the dispute is not only about the specific amount but also about how strictly the government will adhere to its own rules.
The Bank of Latvia generally supports the idea of timely increases in the minimum wage.
Bank of Latvia economist Ieva Opmane believes that a gradual increase will allow businesses to adapt more easily to changes. According to her, if decisions are postponed, a more abrupt increase will be required later, which will be more painful for employers.
At the same time, trade unions are demanding a review of the non-taxable minimum.
The topic of the minimum wage is gradually becoming part of the political struggle ahead of the elections.
For example, the Progressive Party stated that the minimum wage should be 50% of the average gross salary.
Under current calculations, this would mean an increase to about 908 euros — more than 120 euros above the current level.
The Union of Greens and Farmers has not yet specified figures but stated that the trade unions' proposals seem insufficiently ambitious compared to neighboring countries.
For many residents of Latvia, the issue of the minimum wage is directly linked to rising prices, the cost of food, utilities, and overall purchasing power.
At the same time, employers traditionally warn that too sharp an increase could increase the burden on businesses, especially in the regions.
Final decisions on the minimum wage will be made as part of the budget preparation for the coming years.
