A new Work Injuries and Occupational Diseases Insurance Fund (the Work Injuries Fund) is to be established in Latvia. The fund will be managed as an independent state social insurance fund under the supervision of the Ministry of Welfare.

Unlike the previous system where work injury assistance was funded from the social insurance contributions which also paid for pension and other benefits, the new scheme will be financed by insurance premiums paid by employers. These premiums will be based on an assessment of the risk level of the employer made by the Work Injuries Fund.

Benefit arrangements will also change. Sickness benefit shall be paid to the insured person for a period not exceeding 52 calendar weeks. (Under the previous arrangements benefit was payable until the person recovered or was declared permanently disabled.) The benefit will be paid at 100 per cent of the insured person's average monthly earnings, based on earnings for the previous six months.

In the case of an accident at work, the employer is responsible for paying the first fourteen days of sickness benefits. Where permanent or long term loss of work ability has occurred, compensation is also available from the Work Injury Fund. The amount of this compensation will be based on the loss of work ability incurred and the average monthly earnings of the insured person and will range from 30 per cent to 80 per cent of average monthly earnings. This compensation shall be paid for the entire period that the loss of work ability exists. Compensation can also be paid as a once only lump sum to up to triple the amount of the average monthly earnings of the insured person.

Funeral benefits and payments for compensation for the loss of a supporter will also be available from the Work Injuries Fund where a death has occurred as a result of an accident at work or an occupational disease.

The Fund will also be responsible for promoting preventive measures and stimulating employers to improve work environments.

Reference: Law on Compulsory Social Insurance against Work Injuries and Occupational Diseases.

Legislation date: 02.11.1995

Implementation date: 01.01.1997