Karnite, Raita

On 27 June 2006, the Latvian government approved an increase in the tax free allowance threshold and in tax relief for dependent persons. As of 1 January 2007, the personal tax free allowance will be increased from €45 to €57 per month. Tax relief for dependent persons will also be increased from the current €31 per month to €40 per month, from the same date.

On 31 May 2006, the Free Trade Union Confederation of Latvia (Latvijas Brivo Arodbiedribu Savieniba, LBAS [1]), the Latvian Employers’ Confederation (Latvijas Darba Deveju Konfederacija, LDDK [2]), and the Latvian Association of Local and Regional Governments (Latvijas Pašvaldibu Savieniba, LPS [3]), which represents municipalities at national level, signed a tripartite agreement on cooperation. [1] http://www.lbas.lv/En/index.html [2] http://www.lddk.lv/index.php?lang=2 [3] http://www.lps.lv/jaunumi.php?lang=lv

In its plan for 2006, the Employers’ Confederation of Latvia (Latvijas Darba deveju konfederacija, LDDK [1]) has put forward various proposals for changes to the labour law. [1] http://www.lddk.lv/

In 2005, up to 936 illegal employees were found to be working in the 2,000 companies that were inspected by the government. In the first quarter of 2006, the government counted 536 illegal employees in the 1,319 companies inspected. It seems from these inspections that illegal employment most often occurs in the construction, woodworking and trade sectors.

According to national statistics, some 303 institutions and enterprises carried out research and development (R&D) in Latvia in 2004. Based on the equivalent of a full day’s work, these bodies employed a total of 3,324 scientific workers.

The rapid changes in the Latvian labour market over the last two years have generated both economic and social effects. Latvia’s economic development has led to an increase in the number of people in employment. In 2002, some 989,000 persons were employed in Latvia; by 2005, this figure amounted to 1.04 million people. In the second quarter of 2004, 62.4% of residents aged 15–74 years were economically active (working or looking for work); of those, 56.3% were in employment compared with 57% in 2005.

The aim of the study by the Baltic Institute of Social Sciences (Baltijas Socialo Zinatnu instituts, BSZI [1]), carried out in 2005–2006 is to ensure that wheelchair users can choose their own educational and career paths, increase their motivation to become more competitive in the labour market, and reduce social alienation and unemployment. [1] http://www.bszi.lv/default.asp?lang=en

Employers in Latvia are continually bringing their influence to bear on industrial relations. The Latvian Employers’ Confederation (Latvijas Darba Devēju konfederācija, LDDK) brings up issues for debate and public discussion, using social dialogue institutions directly or indirectly - or at least the principle of social dialogue - to find solutions to them. Unlike trade unions, which try to keep social dialogue within the legally mandated framework, i.e. under the auspices of the National Tripartite Council (Nacionālās trīspusējās sadarbības padome, NTSP), employers take a more flexible approach to their activities, getting involved in public discussions in the media, joint seminars, discussions and projects to which the social partners are invited.

Until now, the procedures for paying state officials were determined by 21 laws and cabinet regulations (LV0409104F [1]). The system was seen to have many defects, including a lack of transparency, differing pay levels for the same work, and the fact that various supplements were paid in addition to basic wages. For example, depending on their qualifications, the wages of state secretaries in ministries ranged from EUR 325 to EUR 996 per month. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/pay-determination-in-public-institutions

The emigration of Latvians to other European countries has increased following Latvia’s accession to the EU. At the same time, Latvian businesses are making use of possibilities provided for by the free market and are seeking to provide services from abroad.