The general objective of this reform is to reduce inequality, improve the social safety net, foster social integration and inclusion in Latvia. The reform envisages the revision of a floor of the minimum income by setting it to no less than 20% of the median income. Additionally, as of 2023 a procedure for positive indexation will take place on an annual basis. Previously, the minimum income system had thresholds in nominal terms and was reviewed once in three years.
The Ministry of Welfare started the work on the reform in 2012. In February 2023, it was adopted by the Parliament and the new minimum income ceiling will enter into force as of July 2023. It will then be indexed on 1 January every year.
More information can be found on the Ministry of Welfare webpage at the following links:
- Reference
- 3.1.2.r.
- Project locations
- Latvia
- Project website
- https://www.lm.gov.lv/lv/jaunums/...