Ministry of Welfare offers giving pensioners in Latvia another single-time benefit in December, according to the ministry’s presentation published on the Saeima’s website regarding proposals for compensation of energy price rise for households.
Pensioners whose pension is under EUR 300 are proposed to be given a EUR 200 bonus, whereas for pensioners whose pension is above EUR 300 the single-time benefit may be large enough to make sure their pension amount reaches EUR 500.
The Ministry of Welfare proposes paying this single-time benefit every year. This single-time benefit may be paid in 2023. 80% of income median may be used as a milestone for this. Payment of this benefit may cost the state budget about EUR 43 million every year.
This year’s pension indexation in Latvia is planned to be done on September 1, not October 1.
Doing pension indexation one month earlier will cost an additional EUR 26 million. Indexation will apply to approximately 563,000 residents.
The ministry notes that it is planned to ensure residents’ minimal income threshold to not fall below 20% of income median from January 1, 2023 onward. The state budget co-financing of guaranteed minimum income and housing benefits is planned to be set at 50%.
There are plans to establish higher coefficients for calculating the amount of housing benefits for protected groups from January 1, 2023. It is planned to be increased for lonely pensioners, as well as lonely invalids and households with children.
The Ministry of Welfare also mentioned the proposal to increase minimal wages to EUR 640 or EUR 700 in Latvia next year. (BNN/Business World Magazine)
