In 1999, the cabinet adopted a 'concept' entitled 'On the promotion of
employment in the country', which envisages the drawing up of an annual
National Employment Plan (NEP), complying with EU employment policy (Latvia
is to join the EU in 2004). The first NEP was developed in 2000. In early
July 2003, over half a year late, the government adopted the NEP for 2003.
According to Latvian labour law, the minimum wage paid may not be lower than
the minimum set by the government. The national minimum wage is not linked to
any economically-based income indicator, with the cabinet determining the
minimum wage for 'normal-time' employees and the minimum hourly rate on the
basis of fiscal and social considerations. From a very low level - EUR 3.48
in 1992 (1 LVL currently equals 0.661 EUR) - the monthly minimum wage has
increased to EUR 105.9 in 2003. The government: raised the minimum wage twice
in 1992 (to EUR 5.07 and EUR 11.35); doubled it in 1993 (to EUR 22.70);
raised it twice in 1994 (to EUR 34.04 and EUR 42.36); increased it in 1996
(to EUR 57.49), 1998 (to EUR 63.54), 1999 (to EUR 75.64) and 2001 (to EUR
90.77); and set it at EUR 105.9 from 1 January 2003.