So­cial con­tri­bu­tions to be raised by 1 per­cent­age point

The Baltic Times - - FRONT PAGE - LETA/TBT staff

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.

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