The Prime Minister Reported on Demographics and Salaries 0 13

Since Evika Silina identified demographics as one of the priorities in her plan to restart the government’s work, today's report from the Prime Minister includes much about demographics. There is also a section on the new approach to determining the minimum wage.

"The largest investments to date have been made in the social sphere, particularly strengthening support for families with children and children under foster care. An additional 48 million euros has been allocated to support families. The childbirth allowance has been increased to 600 euros and the childcare allowance to 298 euros (with a review every two years). The opportunities for young people aged 16-19 to receive state family benefits have been expanded if they are studying full-time at a university. The parental allowance for working parents has been maintained at 75% by extending the relevant provision until the end of 2026, and support for parents of prematurely born children has been increased. The conditions for paternity leave benefits in cases of multiple births and adoption of several children have also been improved.

In 2025, the government continued to strengthen demographic policy. An informational report on the development of demographic policy was supported, which provides for intersectoral actions to support families with children and improve demographics. The funds obtained from the review of expenditures are directed towards enhancing material support for families with children (review of childcare allowances, childbirth allowances, and state family benefits), as well as support for children under foster care (adoption, foster families, and guardians).

... From January 1, 2026, the minimum monthly wage in the country will be increased from 740 to 780 euros, continuing the targeted growth of the minimum wage to compensate for the high cost of living and reduce poverty among workers. The minimum wage serves as a protective mechanism for simple professionals and contributes to the growth of household incomes, as well as labor market activity and productivity of the national economy. In 2024, 15.3% of wage workers earned the minimum wage or less, which is significantly lower than three years ago (19.4%). In September 2025, 898.1 thousand residents were employed in Latvia's labor market.

To ensure predictability and transparency, criteria for determining the minimum wage have been established — in the future, its amount will be based on a reference value of 46% of the average gross wage over the last 12 months.

The new procedure provides for an annual review schedule and takes into account macroeconomic forecasts, inflation, income and poverty indicators, as well as employment data.