Latvian government to pull young parents back to labour market
Latvian Chamber of Commerce and Industry has reached an agreement with Welfare Minister Janis Reirs in the formation of a work group that would search for a solution to provide employment to young parents without them losing 70% of state benefits during parental leave.
The current agreement provides as the first step the development of regulations regarding permissible work load (around a quarter of normal work load) while still preserving state benefits in full amount. This is intended to resolve the topical labour force problem in Latvia. In parallel, the work group will also analyse potential options for longer employment periods during parental leave. Experts will have to determine how much work load is permissible for how much time depending on chosen periods (year, month, and week) to help employers during vacation season or in times when there is too much work for employees to handle without help. «During out conversation with the minister, all sides agreed that young people on parental leave represent potential labour force that can be used without causing negative fiscal influence on the budget. This will allow people to work part-time and help reduce grey economy at the same time,»
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