Social contributions to be raised by 1 percentage point
Mandatory social insurance contributions will be raised by 1 percentage point starting from next year, and this revenue will be used for financing the healthcare sector, according to amendments to the Law on State Social Insurance, adopted by the Latvian government on Tuesday, July 11.
The government coalition parties agreed earlier that the social insurance contributions will be raised by 1 percentage point – 0.5 per cent for contributions paid by employers and 0.5 for employees. So in the future, mandatory social insurance contributions will amount to 35.09 per cent – 24.09 per cent paid by the employer and 11 per cent paid by the employee.
Increase of mandatory social insurance contributions will ensure additional EUR 84.6 million to the healthcare sector next year, EUR 98.1 million in 2019, and EUR 103.9 million in 2020.
The amendments also provide that employees for which the general mandatory social insurance contribution is made, will be subject to health insurance and will have the right to receive governmentfunded health care services.
The decision has not been made about other socially insured people who pay labour taxes in a special regime and about those for whom social insurance contributions are not made, due to objective reasons, including pensioners, children and other groups.
Prime Minister Maris Kucinskis on July 5 gave a task to Health Minister Anda Caksa in cooperation with the Finance Ministry, the Welfare Ministry and other responsible institutions, social partners and NGOS to prepare a bill on health care financing and submit it to the Cabinet of Ministers by August 30.