A considerable deficit is forecasted for the State social insurance budget of Latvia over the next few years. Reportedly, a deficit of 277.4 million Latvian lats (LVL) (USD443.7) is envisaged in 2011 and LVL210.9 million (USD394.2) in 2012, and this situation will continue through 2013-14.

In view of this difficult financial situation and in order to ensure the sustainability of the national social security system, the Government of Latvia took a decision to extend the current restrictions on sickness, maternity, paternity, parental and unemployed benefits until 31 December 2014.

These measures are expected to save LVL25.83 million in 2013 and LVL26.42 million in 2014.

The restrictions will not concern people with low incomes, who represent around 79 per cent of all social security beneficiaries in the country. In particular, social security benefits will be limited to LVL11.51 (around USD654 per month) plus 50 per cent of the amount exceeding LVL11.51.

In 2010, 60,316 beneficiaries received unemployment benefits, 1,215 beneficiaries received maternity benefits; 591 beneficiaries, paternity benefits; 12,945 beneficiaries, parental benefits; and 15,789 beneficiaries, sickness benefits.

Source: http://www.apsf.ru/AM2/Snigenj_SocPosob_do_2014_22062011_latd.shtml; www.baltic-course.com/eng/legislation/?doc=39100

Implementation date: 2011