Tell us what you think. Expressed in purchasing power standard, the minimum wage ranges from PPS 547 in Latvia to PPS 1 634 in Luxembourg. The national level tripartite body - National Tripartite Cooperation Council (Nacionālās trīspusējās sadarbības padome, NTSP) does not deal specifically with collective bargaining issues. Salaries for low-skilled employees are different in various regions of the country, while those for high-skilled employees are similar all over the country. However, this schedule was not observed in the beginning of the period (LV0408101N). The main actors in wage formation are employers and employees. In compliance with the law, a minimum wage shall not be less than the minimum level determined by the state. the statistical value of the minimum consumer basket of goods and services per capita. The wages in Latvia change from time to time, depending on both domestic and international markets. If you’re earning minimum wage, your take-home pay will be lower than these figures after taxes and other deductions such as mandatory social insurance payments are made. Keep in mind that the currency being used in Latvia is the Euro (£) from the previous Latvian Lats (LVL). This explains the rapid growth of the minimum wage during the last years (EUR 128.1 per month in 2006, EUR 170.7 in 2007 and EUR 227.7 in 2008). There are just a few examples of effective sector level collective bargaining: in sectors with one dominating company with good traditions of collective bargaining (e.g. Figure 1: Changes of average net wages and salaries and consumer price index, 1995-2007, in percent of previous year, Source: Statistical yearbook of Latvia 2007, Central Statistical Bureau of Latvia, p. 276. The cost of food will depend on your lifestyle, size of your household, and how often you cook at home. The basic methodology for the assessment of intellectual work, as well as the assessment of physical work and the specification of occupational qualification categories shall be determined by the MK. Monthly minimum wages generally below €600 in east and above €1 500 in northwest of the EU. While individualisation of pay setting is one of the trends, companies also try to modify legal relations by using not only employment contracts but also other instruments based on civil law, such as service contracts, author’s contract and other. Those who earn higher than the average salary are assured of a decent lifestyle. What is the average salary in Latvia in 2020? National level social partners do not discuss specifically wage formation in the ICT sector. With regard to ICT, all kinds of upward pressures on pay are characteristic for the sector, such as wage competition between firms, the effects of a tight labour market and using pay as an attraction and retention tool are. Disclaimer: This information is made available as a service to the public but has not been edited or approved by the European Foundation for the Improvement of Living and Working Conditions. However this source does not provide full information about collective bargaining, since trade unions submit statistical data on voluntary basis, and only trade unions – members of the LBAS do so. Social security tax is 11% for employees and 24.09% for employers. Chapters 19-20 of the Labour law describes in detail the payment of wages. Collective bargaining plays role at company level in undertakings where trade unions are established. In newly established ICT companies trade unions are not established. Gasoline costs $1.39 per litre. Growing average wages encourage the increase of the minimum wage. Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices. In January 2020, Bulgaria had the lowest gross* minimum wage (€312) across the EU. The question of setting a minimum wage is one of the most analysed and debated topics in economics. Trade unions demand higher minimum wages and a higher non-taxable minimum (currently EUR 114). An employee who, in addition to the contracted basic work, performs additional work, night work, overtime or work on a bank holiday shall receive a supplement in compliance with the law. Increasing the minimum wage does not have a direct effect on employment, because of two reasons: (1) the level of the minimum wage is lower than wages in low paid sectors and (2) wages may be less than the minimum wage in the case of agreed reduced working time. These are: Department of Industrial Relations and Social Dialogue in the Ministry of Welfare (Labklājības Ministrijas Darba attiecību un Sociālā dialoga nodaļa) (overall responsibility, legislation, public policy), Free Trade Union Confederation of Latvia (Latvijas Brīvo Arodbiedrību savienība, LBAS) (assistance in collective bargaining). £1= $1.10. Employees in the manufacturing sector mainly enjoy life, health, and accident covers. In 2007, the minimum wage was 30% of average gross national salary. Instead, the minimum wage is often debated in conjunction with the non-taxable minimum (LV0702019I, LV0607029I). How is it set and updated? The level of the national minimum wage is the main issue of the national level social dialogue. Read more articles by Eva Gradovska. Wages grow so fast that any negotiated wage level becomes lower than the actual labour market level before it is officially agreed in the collective agreement. Real wage growth was 9.7% in 2005, 15.6% in 2006 and 19.9% in 2007. Wage Statistics Section . In telecommunication sectors, they may influence wage formation indirectly - through tariffs (tariffs on some services are regulated by the Public Utilities Commission (Sabiedrisko pakalpojumu regulēšanas komisija, SPRK). The rate of unemployment is highest among the unskilled followed by highly skilled workers. Luste. You are in the right place! The minimum wage in Latvia is decided either through sectoral collective agreements or by The National Tripartite Cooperation Council. It is one of the largest cities in the United States. The minimum monthly salary shall be maintained for the employee. Maintaining appropriate wage levels encourages high-skilled professionals to work in regional companies rather than sticking to the large cities. Common supermarket prices include: When it comes to dining out, expect to spend about $7.60 for a basic meal in an inexpensive restaurant or $5.51 for a combo meal. The MK shall determine the position classification system and the procedures for the classifying of positions. A labour court does not exist in Latvia. A three-bedroom apartment’s rent is $686.94 in the City Centre and $485.25 outside the City Centre.