Minimum and average pension in Latvia now in 2021

Pension system in Latvia

The pension system consists of three main components:

• state (compulsory) - at the expense of funds contributed by the working population;
• savings for a specific person (for people born after July 1, 1971) - they are made up of a social tax of 34%, levied on the official salary (23% from management and 11% from employee);
• voluntary – represents an accrual to the state fund. This part is paid by banks from the age of 55 and is passed on to inheritance.

Recently, a number of negative trends have been recorded in the country: a lower birth rate, migration for labor reasons and an increase in the number of people of retirement age (about 20% of the total population of the country).

Amount of pension benefits

What kind of pension do pensioners receive in Latvia? The amount of the benefit can be completely different: from 100 to 320 USD. per month (from 9 to 27 thousand in rubles). The average pension in Latvia in 2021 is 320 euros. Almost half of older people are paid 100-210 USD. e. per month. This figure is less than the subsistence minimum.

More than 5% of seniors receive the minimum payment. Its size is less than 100 euros. This is only enough for nutrition. Calculated using a formula taking into account length of service or degree of disability.

Old age could be a time when you don’t have to work, you can enjoy every day of life. But this requires financial freedom. If not freedom, then at least a sense of peace, which comes from knowing that at the end of the month there will be something to eat and money for medicine. According to Sodra estimates, in August 2021, 52 thousand Lithuanian residents received a pension of less than 200 euros.

Representative of pensioners: in current conditions, the minimum pension in Lithuania should be 800 euros (100) If the pension is less than 130 euros and he does not receive any more payments, then the person can apply for a pension benefit. The basic pension benefit is now 130 euros,” said Sodra spokesman Saulius Jarmalis. For example, if a person receives an old-age pension of 100 euros, then he is paid an additional 30 euros.

This means your income will be 130 euros per month. Let us remind you that last year the level of poverty in Lithuania was considered to be an income of 307 euros. Quite a few people in Lithuania also receive a pension in the amount of 200-300 euros - 230 thousand. A pension of 300-400 euros has been provided to 190 thousand pensioners. Almost 60,000 receive a pension of 400-500 euros. 14 thousand pensioners receive a pension of 500-600 euros, 5,000 people receive a pension of 600-700 euros. A total of 2,500 Lithuanian pensioners receive a pension of 700-800 euros. 1,200 pensioners receive 800 euros or more. 80 Lithuanian residents have a pension of more than a thousand euros. The average pension in Lithuania is now 337 euros or 46.66% of the average take-home salary.

It is difficult to say how the ratio of the average pension to the average salary will change in the future, but the demographic situation in the country will affect this. “A minimum pension and short length of service guarantee a minimum right to an old-age pension, an average salary guarantees an average pension,” Yarmalis said.

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The head of the Labor Market Research Institute at the Lithuanian Center for Social Research, Boguslav Gruzevsky, said that those people who receive a small pension probably did not have the necessary work experience or had small incomes. “There could be several reasons: little experience, or maybe people worked for themselves and paid little taxes,” the interlocutor suggested. Gruzevskis agrees that the proportion of people receiving low pensions in Lithuania is very large. “We must admit that some people had more income, but they did not pay taxes on all of them. A person must be responsible for his future,” he noted. According to Gruzhevsky, this is where the problem lies - people want to receive large pensions, but do not want to pay taxes. “Of course, with a salary of 400 euros, you shouldn’t hope for the same pension. But everyone could count on a pension of 300-400 euros if they paid taxes honestly. In addition, part of the funds can be obtained through accumulation in second pillar funds. That’s why we need to start taking care of our pensions as early as possible,” Gruzhevsky said.

However, in the context of European statistics, Lithuanian pensioners do not occupy the worst place. Last year, 33.4% of people over 65 in Lithuania were reported to be living in poverty (5.7% fewer in 2021). Overall, 22.9% of Lithuania's inhabitants lived in poverty. In 2021, the average pension in Lithuania was 255.3 euros, which is less than the poverty level of 307 euros. According to Eurostat, the situation for pensioners in Latvia and Estonia is even worse. In Latvia in 2021, 39.9% of residents over 65 lived in poverty, in Estonia - 41.2%. It is Estonia that ranks last in the EU in terms of this indicator. The happiest pensioners, according to Eurostat, live in Slovakia (only 6.9% in poverty), France (7.8%), Denmark (8.8%) and Hungary (9.1%). According to estimates by the Central Bank of Lithuania, in September 2021, the average old-age pension was 337 euros, or about 47% of the average take-home salary. “Taking into account the forecasts prepared by various international agencies, if nothing is done, in the future this ratio will drop to 30%.

This will be most affected by demographic challenges - the number of pensioners in Lithuania will increase, and accordingly there will be fewer and fewer workers per pensioner,” said Central Bank representative Gediminas Šimkus, noting that the new pension reform should make it so that residents who will save for additional pension, they will receive the same pensions that pensioners receive now. “There is no doubt that now the majority of residents are saving too little for singing,” says a representative of the Central Bank. According to Shimkus, the main source of income for residents will continue to be the Sodrov pension, and additional money can be obtained from second pillar funds and private third pillar funds.

InoSMI materials contain assessments exclusively of foreign media and do not reflect the position of the InoSMI editorial staff.

Pension for military personnel

Due to the fact that during the existence of the Soviet Union, men were sent to serve in different republics, the Latvian government decided to pay them monetary compensation.

Previously, both countries could pay benefits to one person. But now the state has canceled payment for time periods paid by the Russian Federation:

• compulsory service;
• additional service with the troops of the Soviet Union;
• service in the Ministry of Internal Affairs;
• obtaining higher education.

In our realities, elderly citizens of the Russian Federation in the Republic of Latvia are paid military benefits in the amount of about 550 USD. The amount is calculated taking into account officially completed experience.

New minimum benefits and pensions. Who gets it and how much now2

In May, VSAA paid recipients of minimum pensions and benefits the difference resulting from the recalculation of the minimum state pension (for age, disability and survivors) and state social security benefits for the period from January 1 to April 30, 2021.

(!) From January 1, 2021, the amount of the state social security benefit has been increased to 109 euros. The benefit is assigned to residents whose retirement age has approached, but they do not have enough pension (insurance) experience to qualify for an old-age pension.

The amount of social security benefits for residents with disabilities of the 1st and 2nd groups depends on whether the disabled person is working or not. For those who are not working, an additional payment is assigned to the benefit.

What are the benefit amounts taking into account the increase?

Persons with disabilities:

* 1st group

152.60 euros (109 x 1.4) - for workers;

+ additional payment of 45.78 euros (152.60 x 30%), totaling 198.38 euros – for non-workers.

* 1st group from childhood

– 190.40 euros (136 x 1.4) – for workers;

+ additional payment of 57.12 euros (190.40 x 30%), totaling 247.52 euros – for non-workers.

* 2nd group

– 130.80 euros (109 x 1.2) – for workers;

+ additional payment of 26.16 euros (130.80 x 20%), totaling 156.96 euros – for non-workers.

* 2nd group from childhood

163.20 euros (136 x 1.2) - for workers;

+ additional payment of 32.64 euros (163.20 x 20%), totaling 195.84 euros - for non-workers.

* 3rd group

109 euros per month, regardless of whether the disabled person is employed or not.

* 3rd group since childhood

136 euros per month, regardless of whether the disabled person is employed or not.

Between January 1 and April 30, 2021, VSAA paid Social Security benefits at the rate established through December 31, 2021. The difference resulting from the increase in social security benefits for the period from January 1 to April 30 (for January, February, March and April) was paid by VSAA in May.

If the amount of the difference for 4 months is less than the new benefit amount after its increase, then in May the benefit recipient must be paid a one-time additional payment.

In May there was also a transition to the payment of state social security benefits for the previous month. Previously, benefits were paid in the current month. And from June, social security benefits will be paid for the previous month in a new amount. So, the benefit for May will be paid in June.

Along with the benefit for the previous month, the benefit recipient is paid an allowance for those days when he did not work.

EXAMPLE. A non-working disabled person of the 2nd group receives a benefit in the amount of 156.96 euros (130.80 + 26.16) per month. On July 25, 2021, he got a job and entered into an employment contract. When calculating benefits for July, an additional payment is assigned for the period from July 1 to July 24, that is, for the days when the benefit recipient did not work. Thus, in August, along with the benefit, he will receive an additional payment of 20.25 euros (26.16: 31 x 24).

If the recipient of the benefit continues to work throughout August, then in September he will receive a benefit for August in the amount of 130.80 euros - without additional payment...

Help for Chernobyl survivors

State social benefits to participants in the liquidation of the consequences of the accident at the Chernobyl nuclear power plant and to the families of the deceased participant

This year, the amount of state social benefits for the participant in the liquidation of the consequences of the Chernobyl nuclear power plant accident and the family of the deceased participant in the liquidation has been increased. From January 1, 2021, this amount is 109 euros.

From 1 January to 30 April 2021, VSAA paid the benefit in the amount that existed before 31 December 2021 (100 euros per month). After increasing the benefit amount, the difference between the increased and the previous benefit for January, February, March and April was paid simultaneously with the benefit for May 2021...

Insurance benefits for loss of breadwinner and disability

The minimum amount of compensation for the loss of a breadwinner for each child has been increased:

— for a child under 7 years of age – up to 136 euros;

- for a child over 7 years old - up to 163 euros.

From January 1 to April 30, 2021, VSAA paid reimbursement at the rate that existed before December 31, 2021. The difference between the increased and the previous amount of compensation for January, February, March and April is paid simultaneously with the compensation for May 2021.

* From January 1, 2021, the minimum amounts of compensation for loss of ability to work have been increased:

3rd group - 136 euros per month; disabled since childhood - 163 euros;

2nd group - 190.40 euros per month; disabled since childhood - 228.20 euros;

1st group - 217.60 euros per month; disabled since childhood - 260.80 euros.

During the period from January 1 to April 30, 2021, VSAA paid compensation in the amount that existed before December 31, 2021. The difference between the increased and the previous amount of compensation for January, February, March and April was paid simultaneously with the compensation for May 2021...

The old age pension depends on the insurance period

The minimum retirement pension (old age) has been increased. VSAA paid minimum pensions in the first four months, from January 1 to April 30, 2021, in the amount established before December 31, 2020. The difference between the increased and the previous minimum pension for January, February, March and April was paid simultaneously with the pension for May 2021.

The pension is paid for the current month.

The amount of the pension depends on the person’s insurance experience:

- if the insurance period acquired in Latvia is at least 15 years, the amount of the minimum old-age pension cannot be less than 149.60 euros, for disabled people since childhood - 179.30 euros;

- if the insurance period acquired in Latvia is 16 years or more, the minimum age pension is determined by increasing it by 2.72 euros for each year of insurance experience, for disabled people since childhood - by 3.26 euros for each year of insurance experience ...

Disability pension. Its minimum size has been increased

VSAA paid minimum disability pensions in the period from January 1 to April 30, 2021 in the amount established until December 31, 2021. The difference between the increased and the previous amount of the minimum disability pension for January, February, March and April is paid simultaneously with the pension for May 2021.

The pension is paid for the current month.

3rd group - 136 euros per month, disabled people since childhood - 163 euros;

2nd group - 190.40 euros per month; disabled since childhood - 228.20 euros;

1st group - 217.60 euros per month; disabled since childhood - 260.80 euros...

For the loss of a breadwinner. Pensions, compensation, benefits

The minimum survivor's pension for each child has been increased. In 2021 its size is:

* for a child under 7 years old – 136 euros;

* for a child over 7 years old – 163 euros.

The same amount is established for state benefits for the loss of a breadwinner and compensation for the loss of a breadwinner: 136 and 163 euros, respectively - up to 7 years and after.

Pensions, compensation and survivor benefits assigned from January 1, 2021 will be paid by VSAA in the current month for the previous month. Pensions, compensations and benefits that were granted before December 31, 2021 and were transferred to the beneficiary's account continuously after January 1, 2021, were paid by VSAA in the current month for the current month.

The difference between the increased and the previous amount of minimum state support for the loss of a breadwinner for January, February, March and April was paid simultaneously with the pension for May 2021...

(!) More details on the website of the Ministry of Welfare: lm.gov.lv, on the website of the State Social Insurance Agency: vsaa.gov.lv.

Benefits for pensioners in Latvia

Victims of the siege of Leningrad, who now live solely on state payments, can count on financial assistance for purchases in pharmacies and dental prosthetics. The poor receive 2 months of free food every year. Politically repressed people have the opportunity to use public transport free of charge.

In Riga, the local board has appointed the following benefits:

• low-income people (earning less than 127 euros) receive subsidies;
• disabled people of retirement age are paid about 2,000 to equip their apartment;
• People who have reached 100 years of age are guaranteed to receive one-time assistance - 150 euros.

Starting January 1, 2021, a widowed spouse can receive half of their spouse's benefits. Cash assistance must be awarded based on experience, age, or degree of disability.

State social security benefits and other payments

This year there have been noticeable changes in the social sphere.
According to the decision of the Constitutional Court in Latvia, the minimum income for residents to meet basic life needs was not provided. Thus, from January 1, 2021, the size of the state social security benefit is 109 euros (previously 64.03 euros). Based on these changes, a number of other regulations have been adopted since January 1, 2021, which determine the amount of unemployment benefits and the amount of funeral benefits in the event of the death of an unemployed person or in the event of the death of a dependent family member.

A higher level of minimum old-age and disability pensions has also been established.

Changes in the social sphere are being introduced gradually:

on January 1, new amounts of minimum pensions and benefits came into force;

from April 1, new criteria for assigning housing benefits were introduced;

from July 1 - new care benefits come into force.

How to calculate a pension in Latvia

The pension fund consists of three main levels. The state part, consisting of the first two levels, provides payments for people over 62 years of age with 15 years of official work experience. Payment is made through monthly social payments. The tax payment is 34%. The main share is paid by the employer. Banks charge employees 10.5% of the rate.

In order to find out how much pensions are paid in Latvia, you need to make a calculation using the formula RP=SPK/PKL:12. RP means the amount of benefit, SPK - the amount of pension capital, PKL - the planned number of years of payment.

The decision-making procedure on the final amount of assistance is also influenced by the following indicators:

• the amount of pension savings from January 1, 1996 to the month when benefits began to be paid;
• average amount of insurance payment 1996 - 1999;
• total work experience up to December 31, 1995;
• the expected period of payment of cash assistance.

In 2021, the government of the Republic of Latvia amended the income tax law. They should help improve the quality of life of people of retirement age. Taxes will be withdrawn only when the amount of payments in Latvia in 2021 exceeds 270 euros, in 2021 – 300 euros, in 2021 – 330 euros.

Who can live well on retirement in Latvia: counting our own and other people’s money

Latvia needs to significantly increase minimum pensions to reduce poverty among older people and smooth out inequality. This conclusion was reached by experts from the Organization for Economic Co-operation and Development (OECD), who assessed the Latvian pension system.

The OECD assessed Latvia's pension system from April last year to January this year. In response, Welfare Minister Janis Reirs got off with the standard phrase that the analysis carried out would be very useful for the further development and improvement of the system. Although, in his opinion, the Latvian pension system as a whole remains one of the most reliable in the world, and there will definitely not be any changes in it in the next ten years. This means that the majority of pensioners who receive meager pensions, although they have worked their entire adult lives, will not experience much improvement in their well-being. But at the same time, we also have rich pensioners who feel quite good about themselves. Average temperature in the hospital

In January 2021, the average old-age pension in Latvia was 320.27 euros per month. Compared to the corresponding period last year, it increased by 18.53 euros. According to the press service of the State Social Insurance Agency, there were 455,667 pensioners in Latvia in January 2021. Over the year, their number decreased by 4,124.

48.2% of older people received an old-age pension in the amount of 200 to 300 euros per month, 24.4% - from 300 to 400 euros, 7.4% - from 400 to 500 euros per month, more than 500 euros - 8, 3%. In turn, 5.1% of pensioners received less than 100 euros per month, and 6.6% of pensioners received from 100 to 200 euros.

But there are 1,836 people living in the country who receive a pension of over 1,500 euros per month. Record pensions in Latvia are 19.2 thousand, 6.6 thousand and 6.5 thousand euros per month. Who are these record holders? The richest pensioner in Latvia remains incognito. Only the former President of Latvia Andris Berzins and the mayor of Ventspils admitted that they receive about 6 thousand euros per month.

It was previously reported that perhaps the owner of the largest pension is the former largest shareholder of JSC Liepaja Metallurgist Sergei Zakharyin. He earned it before the bankruptcy of the enterprise he controlled, where he received more than 1.3 million euros per year in salary.

The publication's journalists came to this conclusion after summarizing a number of facts, since the Latvian Social Insurance Agency, which pays pensions, does not disclose the personal data of its clients. Among them is information that the recipient of the largest pension lives in Kurzeme, data on the huge amount of remuneration that was paid precisely as a salary, and not in some other form (and therefore corresponding social security contributions were also made from it). insurance).

After the article was published, Sergei Zakharyin himself contacted the newspaper and denied this fact. As evidence, Zakharyin cited a certificate from the State Social Insurance Agency, which states that the amount of his pension is 2,978.68 euros per month, or 2,347.64 euros after taxes. He also pointed out that he is not such a public person as, for example, the mayor of Ventspils Aivars Lembergs or the ex-president of Latvia Andris Berzins, therefore information about the size of his pension will not bring any benefit to society.

What can others expect?

According to the pension law, the size of the future pension is calculated based on the amount of social tax payments for a certain period of time. Therefore, our officials, deputies, heads of large companies, who receive extremely high salaries, can afford to live comfortably even after their well-deserved retirement. But what about those who work in micro-enterprises or earn the minimum wage?

Upon reaching the legal age, all citizens and permanent residents living in the territory of the Republic of Latvia have the right to receive an old-age pension. In accordance with the 2014 reform, the retirement age in Latvia began to increase by 3 months annually. In 2021 it is 62 years and three months.

At the same time, a pension in Latvia in 2021 is assigned only to those whose insurance experience is at least 15 years. From 2025, this norm will be increased to 20 years. The size of the pension directly depends on the total amount of insurance payments and length of service. The minimum pension in Latvia, if the insurance period does not exceed 20 years, is the same as the state social security benefit, to which a coefficient of 1.1 is applied. Currently this amount is 70.43 euros per month.

There is a calculator for your future pension on the website of the State Social Insurance Agency. It is not difficult to calculate that those who work for the minimum monthly salary, which in Latvia is set at 430 euros per month from January 1, 2021, can count on a future pension of no more than 80 euros per month.

Who worked during the USSR

Latvia is home to a fairly large number of elderly people who worked during the Soviet era. Only on January 1, 1996, a personal pension calculation system began to work. And before that there was leveling. So it turns out that the amount received by those who have given 40 years or even more, working in factories and factories, is most often a little more than 200 euros. True, they also have an additional payment for experience of 1 euro per year. And from July 1, 2021 it increases by 0.50–1.50 euros. This means that if a person has 37 years of work experience, he will receive an increase of 18.50 euros per month.

It is true that in the Seimas - for now at the commission level - a bill is being considered that additional payments will apply to those who retired in 1996. Then a personal pension calculation system began to work in Latvia, but it was based on the average salary in 1995, which was 85 lats. The result was a situation where a person who retired at the end of 1996 with a salary of 200 lats was accrued a pension based on a salary of 85 lats.

As a result, older people who retired in 1996 receive on average only 212.78 euros, plus an additional payment for length of service of 30 euros (1 euro for each year worked). And for them, the surcharge for each year will also increase by 50 cents. The increase will affect about 10 thousand pensioners. Also, from January 1, 2021, the non-taxable minimum for pensions was increased from 230 to 250 euros per month. But this only applies to pensions; additional payments are deducted from this amount. This means that for the majority of retirees, nothing has changed.

When will they return

Annual indexations and the promised increase in additional payments will not radically improve the lives of older people. The increases are minimal and do not keep up with the real, not statistical, price level. Therefore, the recommendations of experts from the Organization for Economic Cooperation and Development are unlikely to be accepted. They propose increasing basic pensions from the current level, which is 8% of the country's average salary, to the OECD average of about 20%.

The organization proposes that the Latvian government reduce the 15-year contribution period required to receive the minimum pension, and also introduce survivor pensions for spouses.

In principle, how much older people who have retired should receive is indicated by data from a survey conducted by the European Association of Latvians among Latvians of retirement or pre-retirement age living abroad. They agree to return to their homeland if they are provided with a pension in the amount of 800 - 1,667 euros per month. For now, on the contrary, the Latvian State Revenue Service taxes their pensions, earned in a foreign country and having nothing to do with Latvia, with income tax.

As for the elderly living in Latvia, the Ministry of Health gets off with general phrases, promising to ensure an increase in pensions this year, since they are very small for the majority of pensioners. What will be the size of the next October indexation? The ministry has not yet reported this.

Currently, most pensions are reviewed once a year on October 1, taking into account the actual consumer price index and 50% of the real increase in average wages. Indexation of pensions in 2021 will require an additional 3.2 million euros from the state budget, in 2021 - 16.1 million euros.

Alexander FEDOTOV

Retirement age

Pension reform began in 2014. Every year they will add 3 months to the retirement age and length of service until the retirement age in Latvia rises to 65 years, and work experience to 20 years. Thus, in 2020, people aged 63 years 9 months and with 15 years of work experience have the opportunity to receive pension payments. Conditions are equal for both male and female. It is possible to retire early:

• with a working experience of more than 30 years, a person begins to receive payment two years earlier;
• a parent with many children (5 children or more) with 25 years of experience - 5 years earlier;
• liquidators of the Chernobyl disaster with 15 years of experience - 5 years earlier;
• those who have lost their sight and disabled women - 5 years earlier;
• people who worked in industry with hazardous working conditions before 1995 - 5 years earlier.

A person who is unemployed and goes on vacation ahead of time can receive 50% of the full amount of benefits. After he reaches the required age, the payment will become full.

You need to know this: how the minimum pension is changing from next year

The largest minimum pension is provided for pensioners with long working experience - they will receive more than 220 euros per month, while now the “largest minimum” is 136 euros. Such an increase in pension may seem significant, if you do not take into account that in order to receive such a minimum, a person must work for more than forty years, and officially.

This week the government backed a briefing note outlining proposals for government spending and revenue in 2021 and the budget framework for the next three years. This message also consolidates the initiatives of the Ministry of Welfare to increase the minimum income threshold. From January 1, 2021, it is planned to increase the minimum pensions for old age and disability, social security benefits for the elderly and people with disabilities. According to the ministry's estimates, the changes will cost 70.7 million euros.

The minimum pension can be received if you have at least 15 years of work experience; it is calculated based on the base to which a coefficient is applied depending on the length of service. The longer the length of service, the higher the minimum pension.

Starting next year, the government wants to increase the base for calculating the minimum pension to 136 euros instead of the current 80 euros. (For persons with disabilities, the base is even larger; it will be increased to 163 euros instead of the current 122.69 euros).

This means that the minimum pension in Latvia will be no less than 149.6 euros, and the highest minimum pension will be 220 euros.

Odds are expected to increase

Now there are four groups of experience: from 15 to 20 years, from 21 to 30 years, from 31 to 40 years and from 41 years and more. In the future, the Ministry of Welfare would like to take into account each year of experience and increase the coefficients.

Currently, when determining the minimum old-age pension, a coefficient of 1.1 is applied to the base. From 2025, it will be increased to 1.2, and for each year that exceeds the minimum length of service, they plan to increase the pension size by two percent of the base. This is the Ministry of Health’s response to criticism that the calculation of the minimum pension is unfair, especially for people with little experience and for those with more than 40 years of experience.

Previously, the Constitutional Court ordered politicians to develop a methodology for determining the amount of benefits. The Ministry of Welfare proposes to establish that the calculation base for old-age pensions will have to be 25% of the disposable median household income per consumer (currently 136 euros), and for persons with disabilities since childhood - 30% of the median income in the country (currently 163 Euro).

Thousands receive minimum

According to the State Social Insurance Agency, in Latvia more than 30 thousand pensioners receive the minimum old-age pension; next year their number will be 31,373 people. According to estimates by the Ministry of Health, the number of recipients of minimum pensions will decrease in the coming years - by a hundred people per year. The budget will have to allocate more than 22 million euros to increase the minimum age pension.

Those who cannot qualify for the old age pension receive government social security benefits, which the government wants to increase too. Its size will also be calculated from the median income and amount to 20% of it - 109 euros. The same level is provided for the guaranteed minimum income.

There are 1,677 people of retirement age receiving state social security benefits. In the coming years, their number will increase slightly, the ministry predicts.

Agreement between Russia and Latvia on pensions

The agreement was signed in 2011. It ensures the implementation of pensions in Latvia for Russian citizens, financial assistance for disability and loss of a breadwinner. Work experience is divided into two periods: accumulated before 1991 and after. In accordance with current legislation, Russian citizens living in the Republic of Latvia have the right to cash payments. If you have sufficient experience, it will be calculated according to Latvian conditions. Otherwise, the period before 1991 will be taken into account and confirmation from Russia will be required.

It will be possible to ask for help in the same way in Russia. Then they can take into account the period of work before 1991 in Latvia. The payment is calculated once and is not subject to indexation. Latvian citizens can receive a pension from their country.

Disability pension

How much a person will receive depends on their length of service. A person with 15-20 years of experience will receive a minimum of 88 euros, and in case of disability - 135 euros. Work experience from 21 to 30 years guarantees a minimum pension in 2021 in Latvia in the amount of 104 euros, for a disabled person - 160. With 31-40 years of experience they receive 120 euros, disabled people - 184. With work experience of more than 41 years, banks will pay 136 euros, and for a disabled person – 209.

Unemployment benefit

Unemployment benefits are calculated as a percentage of the average official salary. With up to 9 years of experience, a person will receive 50% of his average earnings, for 10-19 years - 55%, for 20-29 years - 60%, from 30 years - 65%.

Calculation of pensions and structure of the pension system

In order to understand how to correctly calculate a pension in the Republic of Latvia, you must first learn about the pension system of this state itself.

The Latvian pension system consists of 3 levels. The first 2 levels are a state system that provides pensions to all people over 62 years of age with 15 years of work experience. The pension is paid based on previously deducted social monthly payments. Social tax in 2021 is 34%, but most of the tax contribution is paid directly by the employer. Only 10.5% of the monthly salary is withheld from a person’s salary.

Pension system levels

• The first level represents the payment of pensions from the total funds contributed by the working population of Latvia.
• The second level is a pension that the state accumulates specifically for a specific pensioner. This should not be confused with voluntary pension insurance. All residents of the Republic of Latvia who were born after July 1, 1971 fall under the 2nd pension pillar.

  Pension system of Latvia

• The third level is the voluntary accumulation of funds. In other words, a person, while still of working age, can contribute a certain amount to the pension fund (separate from the mandatory insurance contribution), which will be returned to him upon retirement as an addition to the basic pension payments.

In order to calculate the estimated old-age pension, you should use the calculator on this portal https://www.manapensija.lv/ru/ yourself. To calculate, you will need to know the pension capital.

Table: pension amount depending on length of service

Where to get information about pension capital:

1. Initially, a person needs to go to the portal https://www.latvija.lv/ and open the section called “Informācija par prognozējamo vecuma pensijas apmēru (information about the predicted old-age pension.”

   The portal of public services of Latvia can also be viewed in Russian

2. Then you should go to the “pension capital” section and open the “together” tab. To the amount that appears on the screen, you must add the pension capital for your work experience before 1996, which can be found in the “starting pension capital” section. To display the data, you will need to enter the person's personal information.
3. The system then adds these two values. The resulting amount is entered into the calculator.

Standard of living of pensioners in Latvia

As in other Baltic countries, Latvian pensioners with good work experience can have all the conditions for a comfortable life. Payments help cover all major expenses. People who have their own housing and health insurance feel especially good. But according to official data, 16% of pensioners prefer to continue their careers after 65 years. The lowest level of unemployed people of retirement age is observed in Riga.

Due to the fact that the retirement age is equal for both men and women, spouses often retire at the same time. Such a family of two people has an average or higher level of financial wealth.

Forecast for the future

The Latvian government is going to implement a procedure for indexing pensions of less than 349 euros. They will be increased by 3 - 15 euros. By 2025, they want to increase the retirement age to 65 years, and the minimum length of service will be raised to 20 years.

In the Republic of Latvia, every person who has reached the age of 63 has the opportunity to receive a pension. Its size is not very large, but allows you to maintain your quality of life at a comfortable level. The minimum pension in Latvia is 100 euros. You can receive old-age benefits even if you are a citizen of the Russian Federation.

In four months

This difference is paid to recipients of minimum benefits

According to information from the Ministry of Welfare, residents receiving state social security benefits and minimum state pensions (for old age, disability, loss of a breadwinner) are paid in May the difference resulting from an increase in pensions and benefits.

Residents will receive the difference between the previous and new amounts of pensions and benefits accumulated during the period from January 1 to April 30 in one payment. This procedure was intended as a transition period to allow time to update information systems.

According to the World Bank's calculations, the shortfall will be paid to about 115 thousand Latvians.

From January to April, residents received minimum pensions and benefits in the same amount.

Since from January 1 a new minimum old-age pension has been established in Latvia (depending on the insured length of service), other pensions and benefits are calculated on the basis of this basic amount.