Latvian trade unions propose cutting pension service requirement to 15 years

The Free Trade Union Confederation of Latvia (LBAS) has sent a letter to the Ministry of Welfare setting out a series of demands on World Day for Decent Work, which trade unions around the globe mark on 7 October. The organisation stresses that decent work is possible only where jobs are of good quality.

Wages and social protection

LBAS wants the minimum wage in 2027 to be no lower than 835 euros a month. The unions also call for adequate social protection in cases of unemployment, illness and workplace accidents, for the current level of support during incapacity for work to be kept, and for employees' right to paid training to be defended.

Pensions

On pensions, LBAS proposes cutting the minimum length of service needed to qualify from 20 to 15 years and, from 1 January 2028, raising contributions to the second pension pillar from 5% to 6%. It also wants pensions indexed twice a year in line with inflation, rather than once.

European-level demands

LBAS asks the ministry to support European Commission directive proposals on artificial intelligence at work, psychosocial risks, climate-related risks and violence in the workplace, as well as on workers' rights in subcontracting chains. The unions also back a common approach to assessing job quality, covering pay, safety, stability, working time and the right to disconnect, meaning not having to be reachable on work matters outside working hours. The ministry is further urged to support employees' interests in the upcoming Quality Jobs Act, which the Commission is expected to publish this year.

How the minimum wage is calculated

According to a Welfare Ministry report, the minimum wage should equal 46% of the average gross wage, which was 1,815 euros last year. That gives 835 euros for 2027, up 55 euros, or 7%, from 780 euros this year. The government's medium-term plan envisaged 820 euros, which would be 45.2% of the average wage. With 835 euros and a tax-free minimum of 570 euros, a worker would take home 702.10 euros, versus 692.11 euros at 820 euros.

Last year 131,815 employees, or 17.1%, earned the minimum wage or less. Latvia's minimum wage is the second lowest in the European Union, ahead of only Bulgaria, while Lithuania's stands at 1,153 euros and Estonia's at 946 euros.