From April, the rules for maintaining unemployment status and benefits will change
From April 1, individuals must not earn any income to retain their unemployment status and benefits under new amendments to the law in Latvia.
Starting April 1, new regulations in Latvia will stipulate that individuals can only maintain their unemployment status and rights to unemployment benefits if they have no income whatsoever. Under the amendments to the Law on Support for Unemployed Persons and Job Seekers, previously, registered unemployed individuals who were self-employed could earn some income without losing their status as long as their monthly earnings did not exceed the minimum wage and that they made a 10% social security contribution toward their pension.
However, the new rule changes this approach significantly. All forms of income will disqualify individuals from receiving unemployment benefits and maintaining their unemployed status. This includes income from standard employment, self-employment, and even royalties. The implications of this regulation shift are substantial, as individuals currently dependent on partial income for their livelihood will need to either cease all income-generating activities or risk losing their safety net designed for unemployment.
These changes have been communicated by the State Social Insurance Agency (VSAA), which emphasizes the need for individuals to report any earnings to the State Employment Agency within one working day. Such measures underline the government's efforts to tighten eligibility criteria for unemployment benefits, which may be seen as a move to ensure that support reaches only those truly in need, but it may also push some into more vulnerable situations without adequate income.