From 1 July 2009, a number of social security benefits have been reduced due to the state budget curtailments caused by the world financial crisis.

Benefits for families with children

The state family benefit is granted for children aged between one and 15 years and up to the age of 19 if the child is a student at the general or vocational secondary level. This measure applies immediately for the children born after 30 June 2009. For those born before 1 July 2009, the new provision will apply as of 3 May 2010. Under the previous legal provision, the state family benefit was provided from the day of birth until the age of 20 if the child is a student at the general or vocational secondary level and not married.

From 1 July 2009 to 31 December 2012, the monthly state family benefit is set at the rate of LVL 8 (EUR 11.50) per child and no longer depends on the total number of children in the family. Under the previous legal provision, the state family benefit varied with the number of children in the family, as follows: LVL 8 (about EUR 11.50 as at 7 July 2009) for the first child, LVL 9.60 (EUR 13.80) for the second child, LVL 12.80 (EUR 18.40) for the third, LVL 14.40 (EUR 20.71) each for the fourth and subsequent children.
Reportedly, the number of recipients of the state family benefit in April 2009 was 382,123 persons, while the average amount of the benefit was LVL 9.39 (EUR 13.50). The number of beneficiaries decreased by 17 percent compared to 2001, while the average amount of the benefit increased by 78 percent.

Parental benefit

The parental benefit, equal to 70 percent of the average monthly insured wage, was reduced by half for all working parents regardless of the date of the child's birth. For the children born after 3 May 2010, the parental benefit will only be granted if the parent is on leave for childcare and is not employed until after the child's first birthday.

Sick leave benefit

The maximum duration of sick leave benefit in case of non-interrupted leave has been reduced from 52 to 26 weeks, while the total duration of sick leave benefit that can be paid within a 3 years' period cannot exceed 52 weeks.

Unemployment benefit

Under the new provisions, the insured person must have contributed during at least 9 months out of the last 12 months before he/she lost employment to be entitled to the unemployment benefit. The condition was 12 months of paid contributions during the last 18 months under the prior provisions.

The duration of the unemployment benefit is extended to 9 months for those who were entitled to a shorter period under the previous provision. A monthly flat rate benefit of LVL 45 is set for the extended period. The flat-rate benefit will be paid during the last 5 months for the unemployed with a covered working period of 1 to 9 years and during last 3 months for those with a covered working period of 10 to 19 years.

Pension benefits

From I July 2009 until 31 December 2012, public old-age and length-of-service pension benefits will be decreased by 10 percent, while working and self-employed pensioners should receive only 30 percent of the calculated public old-age and length-of-service pension benefits apart from some categories of workers like farmers, fishers, citizens in receipt of author's fees, and deputies of communities whose pension benefits will decrease only by 10 percent.

Early retirement pension benefits will be cut by 30 percent for those who retired before 30 June 2009 and by half for those who retired from 1 July 2009 on.

As reported earlier (see entry No. 3960), from 1 August 2009, delivery of pension benefits to one's home are no more free of charge. A fee of LVL 1.22 (USD 2.45) will be paid by those who wish to benefit from this service. Alternatively, the pensioner can directly receive his/her benefit by opening a pension account at the post office.

Source: : http://www.apsf.ru; Ministry of Welfare of Latvia, http://www.lm.gov.lv/text/539; http://www.lm.gov.lv/news/id/1213; European Industrial Relations Observatory Online; http://www.eurofound.europa.eu/eiro/2009/06/articles/lv0906029i.htm

Implementation date: 07.2009