Welfare Minister Urges Government to Decide on Base Pension Introduction
Latvia's Welfare Minister Reinis Uzulnieks calls on the cabinet to make a decision on introducing a base pension from 2027, starting with the oldest seniors. The reform would raise supplements for work years and require €13.4 million in its first year.
Welfare Minister Reinis Uzulnieks is urging the Latvian government to take a concrete decision on introducing a so-called base pension, planned to take effect on January 1, 2027. The minister emphasizes that this step is included in the government's declaration and is one of his ministry's top priorities.
According to Uzulnieks, the Ministry of Welfare has already completed all necessary preparatory work, including developing a specific model, calculating costs, and preparing legislative amendments. He argues that the government now has all the grounds to make a political decision on what he calls one of the most significant pension system reforms in recent years.
The minister notes that while Latvia's pension system is financially sustainable, the adequacy of pensions is among the lowest in the European Union. The old-age pension replacement rate is about 45%, and international institutions have long urged strengthening seniors' incomes.
The proposal envisions starting the base pension introduction by increasing the supplement for insurance periods before December 31, 1995, and introducing a supplement for periods after January 1, 1996. The reform would be phased in, beginning with seniors aged 85 and older – currently 56,760 people in Latvia. Their average old-age pension is only €503.71 per month, significantly lower than the national average of €640.67.
In the first year of the reform, 2027, implementation would require €13.4 million from the state budget. The minister stresses that these figures show why a decision can no longer be delayed: nearly 57,000 of the oldest generation are living on pensions well below the average. He promised to consistently push for the base pension introduction as a joint government commitment to Latvia's seniors.
