Analytics, Economics, Financial Services, Latvia, Wages

The prime minister said that Latvia must return to increasing the minimum wage annually from 2014, and that the increase should be decided by the economic situation and in discussions with social partners, writes LETA.

According to him, increasing the minimum wage will not only improve the income of persons receiving the minimum wage, but will also improve the efficiency of their work and lessen wages being paid ''under the table''.

Dombrovskis also expressed the point of view that wages must also continue to be increased in the public sector.

At the same time, he said that socially responsible tax policies must also be implemented, and that the tax burden must also be gradually lessened.

''With increased wages, social responsible tax policies, and effective solutions to the country's benefit system, we must get people to believe that it is more beneficial for them to be part of the country's workforce, instead of doing nothing and receiving benefits,'' Dombrovskis said.

The prime minister also said that more money must be invested to improve Latvia's roads, and emphasized that about half of the country's roads are in bad or very bad shape. He said that LVL 4 billion is needed to improve Latvia's roads.