Budget, Financial Services, Latvia, Legislation, Society

Social insurance budget revenue amounted to LVL 1.35 billion in 2012, expenditures – LVL 1.4 billion, of which LVL 1 billion was paid in retirement pensions, 6.9% – disability pensions, 4.8% – sickness, maternity and paternity benefits, 2.9% – unemployment benefits, 2.4% – parental benefits, 1.1% – benefits for accidents at work, 3.2% – other benefits and expenditures.

The state continues to pay pensions and benefits thanks to social insurance savings, which stood at LVL 277.2 million in 2012.

945,700 persons made contributions to the social insurance budget last year. The figure is insufficient as, on the average, one pension is made up of contributions by 1.7 persons, said Jaunzeme.

The average salary from which persons made contributions to the social insurance budget amounted to LVL 418 last year. 35.7% made contributions from incomes under LVL 200 in 2012. The average salary continues to increase gradually, explained Jaunzeme. Last year, it increased LVL 11 on the average.

The Welfare Ministry predicts that the average salary will increase 10 to 15% this year. If the State Revenue Service manages to achieve more people legalizing their income, the average salary could increase 30%.

Jaunzeme predicted that 2013, just like 2012, will be concluded with a deficit, but the situation could improve in 2014, when pension bonuses will be paid from the state budget and social insurance savings could reach LVL 300 million.