The translation of this document is outdated.
Translation validity: 28.11.2018.–12.04.2019.
Amendments not included:
03.04.2019.
Text consolidated by Valsts valodas centrs (State
Language Centre) with amending laws of:
10 June 1998 [shall come
into force from 14 July 1998];
25 November 1999 [shall come into force from 1 January
2001];
13 March 2001 (Constitutional Court judgment) [shall come
into force from 13 March 2001];
20 June 2001 [shall come into force from 20 July
2001];
27 July 2001 [shall come into force from 17 August
2001];
6 June 2002 [shall come into force from 5 July
2002];
3 April 2003 [shall come into force from 1 May
2003];
22 January 2004 [shall come into force from 25 February
2004];
17 March 2005 [shall come into force from 1 April
2005];
27 October 2005 [shall come into force from 25 November
2005];
15 June 2006[shall come into force from 1 October
2006];
19 December 2006 [shall come into force from 1 January
2007];
26 April 2007 [shall come into force from 30 May
2007];
8 November 2007 [shall come into force from 1 January
2008];
19 June 2008 [shall come into force from 23 July
2008];
11 December 2008 [shall come into force from 1 January
2009];
16 June 2009 [shall come into force from 1 July
2009];
1 December 2009 [shall come into force from 1 January
2010];
3 December 2009 [shall come into force from 1 January
2010];
27 May 2010 [shall come into force from 1 September
2010];
9 August 2010 [shall come into force from 1 September
2010];
20 December 2010 [shall come into force from 1 January
2011];
8 July 2011 [shall come into force from 1 October
2011];
15 December 2011 [shall come into force from 1 January
2012];
20 December 2012 [shall come into force from 10 January
2013];
6 November 2013 [shall come into force from 1 January
2014];
13 March 2014 [shall come into force from 1 June
2014];
17 December 2014 [shall come into force from 1 January
2015];
12 March 2015 [shall come into force from 8 April
2015];
30 November 2015 [shall come into force from 1 January
2016];
22 September 2016 [shall come into force from 25 October
2016];
23 November 2016 [shall come into force from 1 January
2017];
20 December 2016 [shall come into force from 1 January
2017];
27 July 2017 [shall come into force from 1 January
2018];
22 November 2017 [shall come into force from 1 January
2018];
25 October 2018 [shall come into force from 28 November
2018].
If a whole or part of a section has been amended, the
date of the amending law appears in square brackets at
the end of the section. If a whole section, paragraph or
clause has been deleted, the date of the deletion appears
in square brackets beside the deleted section, paragraph
or clause.
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The Saeima1 has adopted and
the President has proclaimed the following law:
On State Social
Insurance
Chapter I
General Provisions
Section 1. Terms Used in this
Law
The following terms are used in this Law:
1) employer - a legal or natural person, partnership
with legal capacity, a taxpayer of other European Union Member
State, Swiss Confederation or European Economic Area Member State
(hereinafter - other Member State) or a branch of a merchant
(permanent representation) of other Member State or a lessee of
personnel who uses the services of such micro-enterprise that
provides labour force ensuring services within the meaning of
Section 17.2 of the law On Personal Income Tax, as
well as a domestic taxpayer - a lessee of personnel leased by a
foreign taxpayer who employs an employee or pays for the work of
an employee;
2) employee:
a) a person who, on the basis of a contract of employment for
an agreed work remuneration, performs specific work under the
management of an employer, except for an employee of a
micro-enterprise;
b) [27 October 2005];
c) a member of the Saeima, a local government
councillor, a member of the Cabinet, a member of the board of
directors, council of a commercial company, head clerk,
controller, a volunteer probation officer of the State Probation
Service, as well as another person holding a position which gives
the right to remuneration, if the remuneration has been actually
determined;
d) a person who has entered into a work-performance contract,
a sharecropping contract or a carriage contract provided for in
Part IV, Chapter 15 of The Civil Law and has not registered as an
economic activity income tax payer;
e) an official of an institution of the Ministry of the
Interior system and Prisons Administration with a special service
rank, an official of a State security institution or a military
person of a unit subordinate to the Ministry of Defence;
f) a State civil servant;
g) an authorised representative of a foreign merchant who, not
being in legal employment relationship with such merchant, is
representing it in activities which are related to the branches
of the foreign merchant,
h) a convicted person who is employed during serving the
sentence of deprivation of liberty;
i) an employee of a micro-enterprise;
j) a person who is employed by a foreign taxpayer in the
Republic of Latvia which has a permanent representation in the
Republic of Latvia, as well as a person who is leased to a
domestic taxpayer by a foreign taxpayer - a lessee of
personnel;
k) a person who has entered into contracts for
work-performance, sharecropping contracts or carriage contracts
provided for in Part IV, Chapter 15 of The Civil Law and in
respect of which at least one of the features specified in
Section 8, Paragraph 2.2 of the law On Personal Income
Tax has been determined;
l) an employee of micro-enterprise that provides labour force
ensuring services within the meaning of Section 17.2
of the law On Personal Income Tax;
m) a board member of a capital company if the turnover of the
capital company in the current month of the taxation year exceeds
the minimum monthly wage stipulated by the Cabinet multiplied by
the coefficient 5 and in the relevant month the capital company
does not have any employees or the object of mandatory
contributions of all employees is less than the monthly wage
stipulated by the Cabinet;
n) a person who within the meaning of the law On Personal
Income Tax is employed in seasonal agricultural work and pays the
seasonal agricultural worker income tax;
o) a person who after termination of the legal employment
relationship has an agreement regarding the restriction of the
occupational activity of the employee (restriction on
competition);
p) a person who is driving a vehicle in commercial carriage of
passengers by a taxi, except for an individual merchant;
r) a person to whom State aid for the payment of taxes is
applied in accordance with the Law on Aid for the Activities of
Start-up Companies;
s) a professional athlete;
t) an owner of a farm (fishing undertaking) who is in legal
employment relationship with his or her farm (fishing
undertaking);
3) self-employed person - a person who earns income (or
revenue) as:
a) a person that performs individual work;
b) [25 November 1999];
c) a person whose permanent place of residence is in the
Republic of Latvia and who receives a royalty (copyright or
neighbouring rights remuneration), except for an heir to
copyright and a successor in interest to other copyright;
d) a sworn notary;
e) a sworn advocate;
f) a sworn auditor;
g) a doctor in practice, a pharmacist in practice, a
veterinary practitioner, an optometrist in practice;
h) another natural person whose permanent place of residence
is in the Republic of Latvia and who has registered as an
economic activity income tax payer;
i) an owner (owners) of a farm (fishing undertaking) who, not
being in legal employment relationship with an administrative
authority of his or her farm (fishing undertaking), performs the
management function of such a farm (fishing undertaking) if, in
accordance with the procedures laid down in law, a manager
(director) has not been appointed (elected) in such a farm
(fishing undertaking);
j) a person whose permanent place of residence is in the
Republic of Latvia and whose work is remunerated from foreign
technical assistance resources and loans from international
financial institutions granted to the Republic of Latvia;
k) a sworn bailiff;
l) an individual merchant, including an individual merchant
who is driving a taxi vehicle for commercial carriage of
passengers;
4) a domestic employee at a foreign employer shall:
a) a person who is employed by an employer - a foreign tax
payer in the territory of the Republic of Latvia if the permanent
place of residence of such person is in the Republic of
Latvia;
b) a person who is employed by an employer from another Member
State and to whom in accordance with Articles 11, 12, 13, 14, 15,
and 16 of Regulation (EC) No 883/2004 of the European Parliament
and of the Council of 29 April 2004 on the coordination of social
security systems (hereinafter - Regulation), laws and regulations
of the Republic of Latvia are applicable;
5) foreign employee at a foreign employer - a person
who is employed by the employer - a foreign tax payer in the
territory of the Republic of Latvia if the permanent place of
residence of such person is not in the Republic of Latvia and he
or she stays for 183 days or more in the Republic of Latvia in
any 12-month time period which begins or ends in a taxation
year;
6) disburser of royalties (copyright and neighbouring
rights remuneration) - a merchant, an individual merchant
(including a farm or fishing undertaking), a cooperative society,
a permanent establishment of a non-resident, an institution, an
organisation, an association, a foundation, and a natural person
registered as a performer of economic activities.
[10 June 1998; 25 November 1999; 20
June 2001; 6 June 2002; 3 April 2003; 22 January 2004; 17 March
2005; 27 October 2005; 15 June 2006; 19 June 2008; 11 December
2008; 16 June 2009; 27 May 2010; 9 August 2010; 20 December 2010;
15 December 2011; 6 November 2013; 13 March 2014; 17 December
2014; 22 September 2016; 23 November 2016; 27 July 2017; 22
November 2017; 25 October 2018]
Section 2. Purpose of the Law
This Law prescribes the general principles of State social
insurance (hereinafter - social insurance), as well as governs
its financial and organisational structure.
Section 3. Concept and General
Principles of Social Insurance
(1) Social insurance is a set of measures organised by the
State in order to insure the risk of a person or dependants
thereof to loss of income for work in connection with sickness,
disability, maternity, unemployment, old-age, an accident at work
or the contraction of an occupational disease, nursing of a child
of the socially insured person, as well as additional
expenditures in connection with the death of the socially insured
person or dependants thereof. Social insurance is a part of the
State social security system.
(2) The guiding principles of the social insurance shall
provide for:
1) solidarity between social insurance contribution payers
(hereinafter - the payers) and recipients of social insurance
services (hereinafter - the recipients of services);
2) utilisation of social insurance funds only for social
insurance services in accordance with the Law.
(3) Socially insured persons who are subject to health
insurance have the right to receive health care services covered
from the State budget funds.
[10 June 1998; 25 November 1999; 8 November 2007; 16 June
2009; 27 July 2017 / Paragraph three shall come into force
on 1 January 2018. See Paragraph 65 of Transitional
Provisions]
Section 4. Types of social
insurance
The types of social insurance are as follows:
1) State pension insurance (hereinafter - pension
insurance);
2) social insurance in case of unemployment (hereinafter -
unemployment insurance);
3) social insurance in respect of accidents at work and
occupational diseases (hereinafter - occupational accident
insurance);
4) disability insurance;
5) maternity and sickness insurance;
6) parents' insurance;
7) health insurance.
[8 November 2007; 27 July 2017 / Clause 7 shall come
into force on 1 January 2018. See Paragraph 65 of
Transitional Provisions]
Chapter
II
Persons to be Socially Insured
[10 June
1998]
Section 5. Persons to be Socially
Insured
(1) All employees who have attained 15 years of age employed
by an employer - a domestic tax payer, the tax payer of another
Member State, or a branch of a merchant (permanent
representation) of another Member State, persons taking care of a
child who has not attained one and a half years of age and
receiving an allowance for childcare or a parental benefit,
persons receiving an unemployment benefit, persons with
disabilities who are not registered as employees or have no
mandatory social insurance as self-employed persons, persons
receiving a disabled child care benefit, persons receiving a
maternity, paternity or sickness benefit, persons receiving an
allowance for the care of an adopted child, persons receiving
allowance for the fulfilment of the duties of a foster family,
persons whose spouse (who has been granted a diplomatic rank in
accordance with the Diplomatic and Consular Service Law) performs
diplomatic and consular service in a foreign state and who stay
in the respective foreign state as the spouse of the person
performing diplomatic and consular service, a spouse of a
representative of the Republic of Latvia in Eurojust (hereinafter
- the Eurojust representative) who stays in the respective
foreign state, persons who are located in the respective foreign
state in the status of a spouse of a soldier performing service
duties, except for cases where the soldier participates in an
international operation, military training, manoeuvres or is on a
mission, persons performing temporary paid social work, and
self-employed persons shall be subject to mandatory social
insurance.
(2) All domestic employees who have attained 15 years of age
employed at a foreign employer and foreign employees at a foreign
employer shall be subject to mandatory social insurance.
(3) Persons who have attained 15 years of age, whose permanent
place of residence is in the Republic of Latvia and who are not
subject to mandatory social insurance in the Republic of Latvia,
may join the State social insurance voluntarily in accordance
with the procedures stipulated by the Cabinet. A person who has
not been granted a State old-age pension in accordance with the
law On State Pensions may join voluntarily the pension insurance
and a spouse of a self-employed person who has not attained the
age giving the right to receive the State old-age pension or whom
the State old-age pension has not been granted (including before
term) may join the pension insurance, disability insurance,
maternity and sickness insurance, and parents' insurance
voluntarily.
(31) In accordance with the procedures stipulated
by the Cabinet, persons who pay the income tax of seasonal
agricultural workers may join pension insurance voluntarily.
(32) [20 December 2016]
(33) Professional athletes may join pension
insurance voluntarily in accordance with the procedures
stipulated by the Cabinet.
(4) A person is socially insured for occupational accident
insurance, insurance against unemployment, disability insurance,
maternity and sickness insurance and parents' insurance and
health insurance, and he or she must make mandatory contributions
(regarding thereof) from the day when such person has acquired
the status referred to in Paragraph one of this Section, except
for the status of a self-employed person. A person shall be
socially insured for pension insurance if mandatory contributions
have been actually made.
(5) A self-employed person and the persons referred to in
Paragraphs two and three of this Section are socially insured if
social insurance contributions have been actually made.
(6) Employees of a micro-enterprise, except for the employees
referred to in Section 1, Clause 2, Sub-clause "l" of this Law,
have to be socially insured in accordance with the
Micro-enterprise Tax Law. Employees of a micro-enterprise are not
subject to health insurance.
(7) The employees of a start-up company to whom State aid for
tax payments is applied have to be socially insured in accordance
with the Law on Aid for the Activities of Start-up Companies.
[10 June 1998; 25 November 1999; 20
June 2001; 6 June 2002; 22 January 2004; 17 March 2005; 27
October 2005; 26 April 2007; 8 November 2007; 19 June 2008; 9
August 2010; 20 December 2010; 15 December 2011; 13 March 2014;
30 November 2015; 22 September 2016; 23 November 2016; 20
December 2016; 27 July 2017; 22 November 2017; 25 October
2018]
Section 6. Persons Subject to
Mandatory Social Insurance According to Their Employment, Age,
State of Health and Type of Social Insurance
(1) Employees for whom the social insurance contributions must
be made according to general arrangements have to be socially
insured according to all types of social insurance. Employees for
whom the social insurance contributions need not be made
according to general arrangements shall be subject to pension
insurance, maternity and sickness insurance, parents' insurance,
occupational accident insurance, disability insurance, and
insurance against unemployment.
(2) Employees who have attained the age that gives the right
to receive the State old-age pension or whom the State old-age
pension has been granted (including before term) and for whom the
social insurance contributions must be made according to general
arrangements shall be subject to pension insurance, maternity and
sickness insurance, parents' insurance, occupational accident
insurance, and health insurance. Employees who are recipients of
a service pension or who are persons with disabilities -
recipients of State special pensions - and for whom the social
insurance contributions must be made according to general
arrangements shall be subject to pension insurance, disability
insurance, maternity and sickness insurance, parents' insurance,
occupational accident insurance, and health insurance. Employees
who have attained the age that gives the right to receive the
State old-age pension or whom the State old-age pension has been
granted (including before term) and for whom the social insurance
contributions need not be made according to general arrangements
shall be subject to pension insurance, maternity and sickness
insurance, parents' insurance, and occupational accident
insurance. Employees who are recipients of a service pension or
who are persons with disabilities - recipients of State special
pensions - and for whom the social insurance contributions need
not be made according to general arrangements shall be subject to
pension insurance, disability insurance, maternity and sickness
insurance, parents' insurance, and occupational accident
insurance.
(21) Employees who are employed during serving the
sentence of deprivation of liberty shall be subject to pension
insurance, health insurance, disability insurance, and insurance
against unemployment, but the persons who have attained the age
which gives the right to receive the State old-age pension or
whom the State old-age pension has been granted (including before
term) and who are employed during serving the sentence of
deprivation of liberty shall be subject to pension insurance,
health insurance.
(22) An employee paying the income tax of a
seasonal agricultural worker whose total income from one or
several disbursers of seasonal agricultural workers income
(employers) exceeds EUR 70.00 a month shall be subject to pension
insurance.
(23) A member of the board of directors of a
capital company whose status conforms to that of an employee in
accordance with the conditions of Section 1, Clause 2, Sub-clause
"m" of this Law shall be subject to pension insurance, health
insurance, and disability insurance but a member of the board of
directors of a capital company whose status conforms to that of
an employee in accordance with the conditions of Section 1,
Clause 2, Sub-clause "m" of this Law and who has attained the age
which gives him or her the right to receive the State old-age
pension or who has been granted the State old-age pension
(including before term) shall be subject to pension insurance,
health insurance.
(24) A natural person who receives royalties
(copyright and neighbouring rights remuneration) shall be subject
to pension insurance and the contributions for him or her shall
be made in accordance with Section 23.1 of this
Law.
(3) Self-employed persons whose income reaches the minimum
amount of the object of mandatory contributions stipulated by the
Cabinet shall be subject to pension insurance, disability
insurance, maternity and sickness insurance, health insurance and
parents' insurance, but self-employed persons who have attained
the age which gives the right to receive the State old-age
pension or whom the State old-age pension has been granted
(including before term) shall be subject to pension insurance,
maternity and sickness insurance, health insurance, and parents'
insurance.
(31) [22 September 2016]
(32) Natural persons who are performing economic
activity and paying patent fee for it shall be subject to pension
insurance and disability insurance, but the persons who have
attained the age which gives the right to receive State old-age
pension or whom the State old-age pension has been granted
(including before term) shall be subject to pension
insurance.
(4) In addition to the persons referred to in Paragraphs one,
two, and three of this Section the following persons shall be
subject to pension insurance:
1) [26 April 2007];
2) persons who take care of a child who has not attained one
and a half years of age and receive an allowance for child
care;
3) persons who receive an unemployment benefit;
4) persons with disabilities who are not registered as
employees or who do not have mandatory social insurance as
self-employed persons;
5) persons who receive a maternity, paternity or sickness
benefit;
6) persons whose spouse (who has been granted a diplomatic
rank in accordance with the Diplomatic and Consular Service Law)
performs diplomatic and consular service in foreign states and
who stay in the respective foreign state as the spouse of the
person performing diplomatic and consular service;
7) persons who receive an allowance for the care of an adopted
child;
8) persons who are located in the respective foreign state in
the status of the spouse of a soldier performing service duties,
except for the cases where the soldier participates in an
international operation, military training, manoeuvres or is on a
mission;
9) persons who receive a disabled child care benefit;
10) persons who take care of a child who has not attained the
age of one year or one and a half years, and receive a parental
benefit;
11) persons who are performing temporary paid social work;
12) persons who receive an allowance for the fulfilment of the
duties of a foster family;
13) persons who stay in the respective foreign state as the
spouse of the Eurojust representative.
(5) In addition to the persons referred to in Paragraph one of
this Section the following persons shall be subject to
unemployment insurance:
1) [26 April 2007];
2) persons who take care of a child who has not attained one
and a half years of age and receive an allowance for child
care;
3) persons who receiving a maternity, paternity or sickness
benefit;
4) persons who receive an allowance for the care of an adopted
child;
5) persons who are located in the respective foreign state in
the status of the spouse of a soldier performing service duties,
except for the cases where the soldier participates in an
international operation, military training, manoeuvres or is on a
mission;
6) persons who take care of a child who has not attained the
age of one year or one and a half years, and receive a parental
benefit;
7) persons whose spouse (who has been granted a diplomatic
rank in accordance with the Diplomatic and Consular Service Law)
performs diplomatic and consular service in foreign states and
who stay in the respective foreign state as the spouse of the
person performing diplomatic and consular service;
8) persons who receive an allowance for the fulfilment of the
duties of a foster family;
9) persons who stay in the respective foreign state as the
spouse of the Eurojust representative.
(51) In addition to the persons referred to in
Paragraphs one, two, and three of this Section the following
persons shall be subject to disability insurance:
1) persons who receive maternity or paternity benefit;
2) persons who take care of a child who has not attained the
age of one year or one and a half years, and receive a parental
benefit;
3) persons who take care of a child who has not attained one
and a half years of age and receive an allowance for child
care;
4) persons who receive an allowance for the care of an adopted
child;
5) persons who receive an allowance for the fulfilment of the
duties of a foster family.
(6) Foreign employees at a foreign employer shall be subject
to pension insurance, disability insurance, health insurance,
maternity and sickness insurance, and parents' insurance.
(7) Owners of farms (fishing undertakings) who, not being in
legal employment relationship with an administrative authority of
their farm (fishing undertaking), perform the management function
of such a farm (fishing undertaking) if in accordance with the
procedures provided for in the law a manager (director) has not
been appointed (elected) for such a farm (fishing undertaking)
and who have attained the age which gives them the right to
receive the State old-age pension, or whom the State old-age
pension has been granted (including before term) or who are
persons with Group I or II disabilities shall not be subject to
mandatory social insurance.
(8) Domestic employees at a foreign employer shall be subject
to pension insurance, unemployment insurance, disability
insurance, health insurance, maternity and sickness insurance,
parents' insurance, and occupational accident insurance.
(9) Domestic employees at a foreign employer who have attained
the age which gives the right to receive the State old-age
pension or to whom the State old-age pension has been granted
(including before term) shall be subject to pension insurance,
health insurance, maternity and sickness insurance, parents'
insurance, and occupational accident insurance. Domestic
employees of a foreign employer who are recipients of a service
pension or persons with disabilities - recipients of State
special pensions - shall be subject to pension insurance, health
insurance, disability insurance, maternity and sickness
insurance, parents' insurance, and occupational accident
insurance.
(10) Foreign employees at a foreign employer who have been
sent to perform particular work in the territory of the Republic
of Latvia for a time period not exceeding 12 months shall not be
persons subject to social insurance if they submit to the State
Revenue Service a document attesting to the making of mandatory
contributions in the sending state. The document shall be
submitted upon registration in the Taxpayer Register of the State
Revenue Service.
(11) A natural person who performs the management function of
his or her immovable property or acquires income from a private
subsidiary farm or a backyard farm and has registered as an
economic income tax payer and has attained the age which gives
him or her the right to receive the State old-age pension, or
whom the State old-age pension has been granted (including before
term), or who is a person with Group I or II disability or whose
permanent place of residence is not in the Republic of Latvia
shall not be subject to mandatory social insurance.
(12) A natural person who performs the management of his or
her immovable property and has registered as an economic activity
income tax payer shall be subject to pension insurance, health
insurance, and disability insurance.
(13) A natural person whose permanent place of residence is in
the Republic of Latvia and who receives royalties (copyright and
neighbouring rights remuneration), except for a heir to copyright
and a successor in interest of other copyrights, and has attained
the age which gives him or her the right to receive the State
old-age pension or whom the State old-age pension has been
granted (including before term), or who is a person with Group I
or II disability shall not be subject to mandatory social
insurance.
(14) [27 July 2017]
(15) A person who, upon acquiring the same income, complies
with several statuses of a person subject to social insurance
concurrently shall be subject to social insurance as an employee
or a domestic employee at a foreign employer.
(16) A foreign employee at a foreign employer who, upon
acquiring the same income, complies with several statuses of the
person subject to social insurance concurrently shall be subject
to social insurance as a foreign employee at a foreign
employer.
(17) An employer of another Member State may agree with a
person to whom the laws and regulations of the Republic of Latvia
are applied in accordance with Articles 11, 12, 13, 14, 15, and
16 of the Regulation as to the status of the person in which he
or she will make mandatory contributions: in the status of an
employee or in the status of a domestic employee of a foreign
employer. In respect of such an agreement, the employer shall
inform the State Revenue Service.
(18) A person who is registered as an employee of a
micro-enterprise and who concurrently complies with other
statuses of a person subject to social insurance, by acquiring
the same income, he or she shall be subject to social insurance
as an employee of a micro-enterprise.
(19) [20 December 2016]
(20) A person who after termination of the legal employment
relationship has an agreement regarding the restriction of the
occupational activity of the employee (restriction on
competition) shall be subject to social insurance for the whole
period when the agreement is in effect in accordance with
Paragraph one or two of this Section.
(21) A foreigner to whom the Regulation or an
intergovernmental agreement on social security does not apply and
who is employed within the framework of a project funded by the
European Commission shall not be subject to mandatory social
insurance within the framework of the abovementioned project.
[10 June 1998; 25 November 1999; 20
June 2001; 6 June 2002; 22 January 2004; 17 March 2005; 27
October 2005; 26 April 2007; 8 November 2007; 19 June 2008; 3
December 2009; 27 May 2010; 9 August 2010; 20 December 2010; 15
December 2011; 13 March 2014; 12 March 2015; 30 November 2015; 22
September 2016; 23 November 2016; 27 July 2017; 22 November 2017;
25 October 2018]
Chapter
III
Social Insurance Funds and Procedures for Utilisation
Thereof
Section 7. Social Insurance Special
Budgets
(1) Social insurance contributions (hereinafter - the
contributions) are made and social insurance services are
financed from the following special budgets:
1) State pension special budget;
2) employment special budget;
3) special budget for occupational accidents;
4) disability, maternity and sickness special budget.
(2) Special budgets are administered in accordance with the
law On Budget and Financial Management.
(3) A reserve may be established for each special budget in
which reserve the excess income of a special budget over the
amount of financing for the provided social insurance services is
included.
(4) Each reserve of a special budget may be utilised in
accordance with law.
[22 January 2004]
Section 8. State Pension Special
Budget
(1) The State pension special budget shall consist of:
1) mandatory and voluntary contributions for pension
insurance, except for payments made in the State funded pension
scheme;
2) dividends from capital shares transferred to the State
pension special budget and revenue from the sale thereof;
3) other revenue.
(2) Social insurance services may be financed and expenses of
a manager of such budget related to the administration of the
budget may be covered from the State pension special budget only
in accordance with the law On State Pensions, except for
disability pension.
[20 June 2001; 3 April 2003]
Section 9. Employment Special
Budget
(1) Funds of the employment special budget shall consist of
mandatory contributions for insurance against unemployment and
other revenues.
(2) Social insurance services may be financed and expenses of
a manager of such budget related to the administration of the
budget may be covered from the employment special budget only in
accordance with the law On Insurance in Case of Unemployment.
[6 June 2002]
Section 10. Special Budget for
Occupational Accidents
(1) Funds of the occupation accident special budget shall
consist of mandatory contributions for occupational accident
insurance and other revenues.
(2) Social insurance services may be financed and expenses of
a manager of such budget related to the administration of the
budget may be covered from the special budget for occupational
accidents only in accordance with the law On Mandatory Social
Insurance in Respect of Accidents at Work and Occupational
Diseases.
Section 11. Disability, Maternity
and Sickness Special Budget
(1) Funds of the disability, maternity and sickness special
budget shall consist of mandatory contributions for disability
insurance, maternity and sickness insurance, and parents'
insurance and other revenues.
(2) Social insurance services may be financed only in
accordance with the law On Maternity and Sickness Insurance, as
well as disability pensions and the expenses of a manager of such
budget related to the administration of the budget may be covered
from the disability, maternity and sickness special budget.
[3 April 2003; 8 November 2007]
Chapter
III.¹
Financial Means for Health Care Services
[27 July 2017 / This
Chapter shall come into force on 1 January 2018. See
Paragraph 65 of Transitional Provisions]
Section 11.1 Financial
Means for Financing Health Care Services
A part of mandatory contributions which corresponds to one
percentage point of the rate of mandatory contributions is
intended for financing of health care services.
[27 July 2017 / Section shall come into force on 1
January 2018. See Paragraph 65 of Transitional
Provisions]
Section 11.2 Transfer and
Utilisation of Financial Means Intended for Financing Health Care
Services
(1) Financial means intended for financing health care
services are transferred into the State basic budget revenue in
accordance with the provisions laid down in Section 22 of this
Law.
(2) The utilisation of financial means intended for financing
health care services and the rights of socially insured persons
to receive health care services are prescribed by the Health Care
Financing Law.
[27 July 2017 / Section shall come into force on 1
January 2018. See Paragraph 65 of Transitional
Provisions]
Chapter
IV
Insurance Contributions, Object of Insurance Contributions,
Administration of Mandatory Contributions, Insurance Contribution
Rates
Section 12. Insurance
Contributions
(1) A mandatory insurance contribution is a mandatory payment
specified in law into the account of a special budget which gives
the right to a socially insured person to receive social
insurance services specified in law.
(2) A voluntary insurance contribution is a voluntary payment
which is made by the persons referred to in Section 5, Paragraph
three of this Law into the State pension special budget and to
the disability, maternity and sickness special budget, and which
gives the right to such persons to receive the State old-age
pension, disability pension, maternity, sickness and parenting
benefit in conformity with the amount of contributions made.
[25 November 1999; 20 June 2001; 8
November 2007]
Section 13. Registration of Persons
and Employers Subject to Social Insurance
(1) Employers and self-employed persons shall be registered
with the Taxpayer Register of the State Revenue Service in
accordance with the procedures stipulated by the Cabinet.
(2) Each employee who has acquired, changed or lost the status
of an employee specified in Section 1, Clause 2 of this Law shall
be registered by the employer with the State Revenue Service.
Information regarding employees shall be provided by the employer
within the term and in accordance with the procedures stipulated
by the Cabinet.
(21) The disburser of a seasonal agricultural
workers income (employer) shall register each seasonal
agricultural worker - income tax payer within the term and in
accordance with the procedures stipulated by the Cabinet
submitting information regarding the employees to the State
Revenue Service.
(3) Persons who joined pension insurance, disability
insurance, maternity and sickness insurance, and parents'
insurance voluntarily shall be registered with the State Social
Insurance Agency in accordance with the procedures stipulated by
the Cabinet.
(4) Domestic employees of a foreign employer and foreign
employees of a foreign employer shall be registered in the
Taxpayer Register of the State Revenue Service in accordance with
the procedures stipulated by the Cabinet within 10 days from the
day of acquiring the status.
(5) The State Revenue Service has the right to register losing
the status of a socially insured person (employee). The
procedures by which the State Revenue Service shall register
losing the status of a socially insured person (employee) shall
be determined by the Cabinet.
(6) The employee shall be registered as a socially insured
person from the date indicated by the employer but not earlier
than 60 days before the date on which the employer submitted
information regarding the status of the employee. The Cabinet
shall determine the cases in which an employee is registered as a
socially insured person from the date indicated by the
employer.
(7) The dates of acquiring and losing the status of an
employee shall not be adjusted or updated.
[25 November 1999; 17 March 2005; 8
November 2007; 19 June 2008; 20 December 2012; 13 March 2014; 22
September 2016; 23 November 2016 / Paragraphs six and seven shall
come into force on 1 July 2017. See Paragraph 62 of Transitional
Provisions]
Section 14. Object of Mandatory
Contributions
(1) The object of mandatory contributions of an employer and
employee shall be all calculated income for work from which
personal income tax must be deducted without deduction of the
non-taxable minimum, tax concessions and eligible expenses for
which the taxpayer has the right to reduce the taxable
income.
(2) The object of mandatory contributions of a self-employed
person shall be the freely selected income from the production of
goods, performance of work, provision of services, creative and
professional activity and other income from economic activity,
except for the income that is obtained by a natural person who
has been referred to in Section 6, Paragraph seven, eleven, or
thirteen of this Law, from agricultural (fish) farming, his or
her immovable property, self-produced production in an individual
subsidiary farm or household farm, copyright and related rights.
The Cabinet shall determine the minimum amount of the object of
mandatory contributions and the procedures for determination
thereof.
(21) The State aid to agriculture or the European
Union aid to agriculture and rural development and a
non-recurring grant to unemployed persons for the implementation
of a business plan shall not be included in the object of
mandatory contributions of a self-employed person.
(3) The object of such mandatory contributions to be made from
the State basic budget and special budgets shall be determined by
the Cabinet.
(4) The object of mandatory contributions of a domestic
employee at a foreign employer and a foreign employee at a
foreign employer shall be the reimbursement received.
(5) From 1 January 2019 the maximum amount of the object of
mandatory contributions and voluntary insurance contributions is
calculated and specified for three years, taking into account the
maximum amount of the object of contributions in the previous
period, the increase or decrease of the average gross monthly
work remuneration predicted by the Ministry of Finance for the
subsequent three calendar years, and the actual average increase
or decrease of the average gross monthly work remuneration of
persons employed in the national economy in the previous
calculation period. The maximum amount of mandatory contributions
and voluntary contributions per year is EUR 62 800. The Cabinet
shall determine the procedures for specifying the maximum amount
of the object of mandatory contributions.
(6) The Cabinet shall determine the minimum amount of the
object of voluntary insurance contributions and the procedures
for specifying the maximum amount thereof.
(7) The object of mandatory contributions specified in
Paragraph one of this Sections shall not include the
contributions made in favour of an employee by an employer in
private pension funds in conformity with licensed pension plans,
paid amounts of life assurance (with accumulation of funds)
premiums and paid amounts of life, health or accident insurance
premiums (without accumulation of funds) in accordance with the
provisions of the law On Personal Income Tax.
(8) Payments of mandatory insurance premiums of an employer in
the cases specified in laws and regulations when an insurance
contract was entered into in favour of an employee shall not be
the object of mandatory contributions.
(9) [27 October 2005]
(10) The object of mandatory contributions for a person who
has entered into a work-performance contract, a sharecropping
contract, or a contract of carriage provided for in Part IV,
Section 15 of The Civil Law and has not been registered as an
economic activity income tax payer shall be the reimbursement
determined in the contract.
(11) The object of mandatory contributions for an authorised
representative of a foreign merchant who not being in legal
employment relationship with such merchant represents such
activities which are related to the branches of the foreign
merchant shall be the remuneration calculated thereto.
(12) The object of mandatory contributions of a member of the
Saeima, a local government councillor, a member of the
Cabinet, a member of the board of directors, council of a
commercial company, head clerk, controller, a volunteer probation
officer of the State Probation Service, as well as other persons
holding a position which gives the right to remuneration, shall
be the remuneration specified.
(121) The object of mandatory contributions for a
member of the board of directors of a capital company who
complies with the status of an employee in accordance with the
conditions of Section 1, Clause 2, Sub-clause "m" of this Law
shall be not less than the minimum monthly wage stipulated by the
Cabinet.
(122) The condition of Paragraph 12.1 of
this Section is not applied to a member of the board of directors
of a capital company who complies with the status of an employee
in accordance with the conditions of Section 1, Clause 2,
Sub-clause "m" of this Law and who has been specified
remuneration as the member of the board of directors which is not
less than the amount of five minimum monthly wages stipulated by
the Cabinet in a capital company which is the participant of one
group of undertakings within the meaning of the law On Personal
Income Tax.
(123) Paragraph 12.1 of this Section
shall not be applied in the calendar year in which the capital
company is registered in the Enterprise Register.
(13) The maximum amount of the object of mandatory
contributions specified in Paragraph five of this Section shall
not be applied for a person to whom Regulation (EEC, EURATOM,
ECSC) No 259/68 of the Council of 29 February 1968 laying down
the Staff Regulations of Officials and the Conditions of
Employment of Other Servants of the European Communities (Staff
Regulations of Officials), if the pension capital accumulated in
the European Union pension scheme is transferred to the State
pension system of Latvia.
(14) The minimum amount of the object of mandatory
contributions and the maximum amount of the object of mandatory
contributions shall not be applied for natural persons which
perform economic activity and pay patent fee for it.
(15) The State Social Insurance Agency shall calculate the
object of mandatory contributions according to the payment into
the account of the special budget for natural persons which are
performing economic activity and paying the patent fee for
it.
(16) The State Social Insurance Agency shall calculate the
object of mandatory insurance contributions of employees paying
the income tax of seasonal agricultural workers in proportion to
the payments into the special budget account by applying an
appropriate mandatory contribution rate to an employee's actual
income.
(17) For a person whose payment has been fixed in accordance
with the Law on Aid for the Activities of Start-up Companies, the
contribution object shall be the fixed payment object specified
in the Law.
(18) In addition to the freely selected object of mandatory
contributions specified in Paragraph two of this Section, the
object of mandatory contributions of a self-employed person shall
be the difference between the actual income and the relevant
freely selected contribution objects.
(19) Royalties (copyright and neighbouring rights
remuneration) shall be the object of mandatory contributions from
which the disburser of royalties (copyright and neighbouring
rights remuneration) makes contributions for pension
insurance.
(20) The object of mandatory contributions for a professional
athlete shall be two minimum monthly wages stipulated by the
Cabinet. The object of mandatory contributions shall be
determined in proportion to the period during which the
professional athlete has the status of an employee and also shall
not be applied for those calendar days of the taxation year on
which the professional athlete is on a child care leave, on which
he (child's father) has been granted a leave in relation to the
childbirth, on which he or she is on a leave without retaining
work remuneration that has been granted to a professional athlete
to whom a child to be cared is given under the care and
supervision according to a decision of the Orphan's and Custody
Court before approval of adoption, or for calendar days of
temporary incapacity for work, prenatal and maternity leave for
which sick-leave certificate B is issued.
(21) If the object of mandatory contributions calculated for a
professional athlete is lower than specified in Paragraph twenty
of this Section, mandatory contributions from the difference
between the object of mandatory contributions specified in
Paragraph twenty of this Section and the object of mandatory
contributions calculated in conformity with Paragraph one of this
Section shall be calculated and settled from own funds by the
employer. The employer shall calculate the difference of
mandatory contributions in conformity with the provisions
specified in Section 20, Paragraphs one, two, three, and four of
this Law. The calculated difference shall be paid by the employer
from own funds within the time period specified in Section 21,
Paragraph one of this Law.
(22) The income earned by a self-employed person referred to
in Paragraph two of this Section shall be the income from
economic activity calculated in accordance with the law On
Personal Income Tax, without applying the restriction of
expenditure for economic activity specified in Section 11,
Paragraph 3.1 and Section 11.1, Paragraph
6.1 of the law On Personal Income Tax.
[10 June 1998; 25 November 1999; 20 June 2001; 6 June 2002;
3 April 2003; 22 January 2004; 17 March 2005; 27 October 2005; 19
December 2006; 19 June 2008; 11 December 2008; 1 December 2009; 3
December 2009; 9 August 2010; 20 December 2010; 6 November 2013;
13 March 2014; 17 December 2014; 22 September 2016; 23 November
2016; 27 July 2017; 22 November 2017; 25 October 2018 /
The new wording of Paragraphs five and six and also the
amendment to Paragraph twenty shall come into force on 1 January
2019. See Paragraph 69 of Transitional Provisions]
Section 15. Administration of
Mandatory Contributions
Mandatory contributions shall be administered in accordance
with the procedures laid down in laws and regulations.
Section 16. Late Charges
(1) [19 December 2006]
(2) Late charges shall be recovered for the missed time period
for making mandatory contributions from the amount of mandatory
contributions unpaid (principle debt) for each late payment day
in accordance with the law On Taxes and Duties.
(3) The late charges shall be paid or recovered from the
financial resources of an employer, a self-employed person, a
disburser of royalties, a domestic employee at a foreign
employer, and a foreign employee at a foreign employer.
[10 June 1998; 25 November 1999; 22
January 2004; 19 December 2006; 27 July 2017]
Section 16.1
Responsibility of Payers for Other Violations of the Law
(1) If an employer has employed or employs a person without
entering into an employment, work-performance, sharecropping
contract or a carriage contract, and the employer has calculated
or paid out or he or she had to calculate and pay out to the
employee income, from which mandatory contributions were to be
calculated, but this income has not been indicated in the
accounting record and in the report submitted to the State
Revenue Service on State social insurance mandatory contributions
from the income for work of the employees, personal income tax
and State fee of business risk in the accounting month and
mandatory contributions have not been calculated from it, the
State Revenue Service shall recover from the employer the
mandatory contributions from the amount which corresponds to the
information at the disposal of the State Revenue Service
regarding reimbursement to be calculated for the person, if it is
possible to determine the amount thereof and if it is larger than
the amount of the minimum wage determined by the Cabinet, or from
the amount of the minimum wage stipulated by the Cabinet if the
reimbursement to be calculated is equal to or lower than that or
if it is not possible to determine the actual reimbursement, and
a fine in the amount of three times the mandatory contributions.
If it is not possible to specify a time period in which an
employer has employed a person without entering into an
employment, work-performance, sharecropping contract or a
carriage contract, it shall be considered that a person has been
employed for three months already, including the month in which
such violation has been disclosed, unless the employer or
employee may prove a shorter duration of existence of legal
employment relationship.
(11) If an employer has employed or employs a
person by entering into an employment, work-performance,
sharecropping contract or a carriage contract, but the income
calculated or paid out to the employee or the income which had to
be calculated and disbursed and from which mandatory
contributions were to be calculated, has not been indicated in
the accounting record and in the report submitted to the State
Revenue Service regarding State social insurance mandatory
contributions from the income for work of the employees, personal
income tax and State fee of business risk in the accounting month
and mandatory contributions have not been calculated from it, the
State Revenue Service shall recover from the employer the
difference between the amount of mandatory contributions that
shall be calculated according to the information at the disposal
of the State Revenue Service and the amount of mandatory
contributions calculated by the employer, as well as a fine in
the amount of three times the mandatory contributions.
(2) [15 December 2011].
(3) If it has been determined that an employer has employed a
person without entering into an employment, work-performance,
sharecropping contract or a carriage contract, but the State
Revenue Service is not able to identify the employed person,
mandatory contributions and fine shall be recovered in accordance
with the procedures laid down in Paragraph one of this Section
without personification thereof.
(4) [27 October 2005]
(5) If an employer has calculated mandatory contributions of
persons referred to in Section 1, Paragraph 2, Sub-paragraph "a"
of this Law from a salary which is lower than the minimum wage
stipulated by the Cabinet and a supporting document does not
exist certifying it, the tax authority shall recover from the
employer the mandatory contributions and a fine in the amount of
three times the mandatory contributions from the amount
corresponding to the amount of the minimum wage stipulated by the
Cabinet.
(51) The State Revenue Service, when performing tax
inspection (audit), has the right to clarify the income for work
of the employee calculated by the employer and determine it on
the basis of calculation that is performed according to the
information at the disposal of the State Revenue Service, if both
of the following conditions exist:
1) the information regarding income of the employer from which
it was possible to perform larger remuneration to the employees
than it was determined in the accounting record is at the
disposal of the State Revenue Service;
2) the employer fails to ensure evidence for the calculation
of substantiation for the abovementioned income for work.
(52) If the income for work of the employee to be
calculated by the employer is determined on the basis of the
calculation in accordance with Paragraph 5.1 of this
Section, the State Revenue Service shall recover from the
employer the difference of mandatory contributions between the
amount of mandatory contributions that is determined on the basis
of calculation that is performed according to the information at
the disposal of the State Revenue Service and the amount of
mandatory contributions calculated by the employer, as well as a
fine in the amount of three times the mandatory
contributions.
(6) [19 December 2006]
[25 November 1999; 20 June 2001; 6
June 2002; 22 January 2004; 17 March 2005; 27 October 2005; 19
December 2006; 19 June 2008; 11 December 2008; 20 December 2010;
15 December 2011]
Section 17. Procedures for
Utilisation of Fines and Late Charges
The Treasury shall include a fine which has been calculated as
the result of inspections carried out by the State Revenue
Service and a late charge in each special budget in conformity
with the proportion of such special budget specified in the State
annual budget law.
[25 November 1999; 19 December
2006]
Section 18. Rates of Mandatory and
Voluntary Contributions
(1) If an employee has been insured for all types of social
insurance, the mandatory contribution rate shall be 35.09 per
cent from which an employer shall pay 24.09 per cent and an
employee shall pay 11 per cent.
(2) The Cabinet shall determine the mandatory contribution
rate for persons subject to mandatory social insurance and the
distribution thereof according to the types of social
insurance.
(3) The voluntary contribution rate shall be the rate
stipulated by the Cabinet for pension insurance, disability
insurance, maternity and sickness insurance, and parents'
insurance.
[25 November 1999; 6 June 2002; 17 March 2005; 8 November
2007; 20 December 2010; 6 November 2013; 22 September 2016; 27
July 2017 / The new wording of Paragraph one shall come
into force on 1 January 2018. See Paragraph 65 of
Transitional Provisions]
Section 19. Mandatory Contributions
from State Basic Budget and Special Budgets
(1) In accordance with the procedures stipulated by the
Cabinet:
1) mandatory contributions for pension insurance for the
persons referred to in Section 6, Paragraph four, Clauses 2, 6,
7, 8, 9, 11, 12, and 13 of this Law shall be made from the State
basic budget;
2) mandatory contributions for unemployment insurance for the
persons referred to in Section 6, Paragraph five, Clauses 2, 4,
5, 7, 8, and 9 of this Law shall be made from the State basic
budget;
3) mandatory contributions for pension insurance for the
persons referred to in Section 6, Paragraph four, Clause 3 of
this Law shall be made from the employment special budget;
4) mandatory contributions for pension insurance for the
persons referred to in Section 6, Paragraph four, Clauses 4, 5,
and 10 of this Law and for unemployment insurance for the persons
referred to in Section 6, Paragraph five, Clauses 3 and 6 of this
Law shall be made from the disability, maternity and sickness
special budget;
5) mandatory contributions for pension insurance for the
persons referred to in Section 6, Paragraph four, Clauses 4 and 5
of this Law and for unemployment insurance for the persons
referred to in Section 6, Paragraph five, Clause 3 of this Law
shall be made from the special budget for occupational accidents
if the cause of the disability or sickness of such persons is an
accident at work or an occupational disease;
6) mandatory contributions for disability insurance for
persons referred to in Section 6, Paragraph 5.1,
Clauses 1 and 2 of this Law shall be made from the special budget
for disability, maternity and sickness;
7) mandatory contributions for the persons referred to in
Section 6, Paragraph 5.1, Clauses 3, 4, and 5 of this
Law shall be made from the State basic budget.
(2) Mandatory contributions from the State basic budget or
special budgets are not paid for the days of reporting month for
which mandatory payments have been calculated or paid for a
person as an employee, a domestic employee at a foreign employer,
a foreign employee at an employer foreigner, or as self-employed.
Mandatory contributions from the State basic budget or special
budgets for pension insurance are not made for those reporting
months for which mandatory contributions for pension insurance
are made in accordance with Chapter V.1 of this
Law.
(3) The State Social Insurance Agency shall cancel registered
mandatory contributions of a person from the State basic budget
and the special budgets for the periods of time in which there is
information regarding the respective person being insured or
employed in another Member State or a country with which Latvia
has a social security agreement. After cancelling the mandatory
contributions, the State Social Security Agency shall, within a
month, review the State pension granted to the respective person.
The State pension shall be re-calculated starting with the first
date of the month following the month in which the contributions
have been cancelled.
[10 June 1998; 25 November 1999; 22
January 2004; 27 October 2005; 26 April 2007; 8 November 2007; 19
June 2008; 11 December 2008; 1 December 2009; 15 December 2011;
12 March 2015; 22 September 2016; 23 November 2016; 22 November
2017; 25 October 2018]
Chapter V
Calculation of Mandatory Contributions
Section 20. Determination of Amount
of Mandatory Contributions
(1) An employer shall calculate a mandatory contribution to be
made for each employee multiplying the object of contributions by
the mandatory contribution rate specified for the employer, if
the employee is insured in all types of social insurance.
(2) An employer shall calculate the mandatory contribution to
be made by an employee multiplying the object of contributions by
the mandatory contribution rate specified for the employee if the
employee is insured in all types of social insurance.
(3) An employer shall calculate a mandatory contribution to be
made for each employee who:
1) has attained the age which gives the right to receive the
State old-age pension or whom the State old-age pension has been
granted (including before term) multiplying the object of
contributions by the mandatory contribution rate which has been
specified for the employer for State pension insurance, maternity
and sickness insurance, parents' insurance, and occupational
accident insurance;
2) is a recipient of a service pension or a person with
disability - recipient of a State special pension - multiplying
the object of contributions by the mandatory contribution rate
specified for the employee's State pension insurance, maternity
and sickness insurance, parents' insurance, and occupational
accident insurance.
(4) The employer shall calculate a mandatory contribution to
be made by an employee who:
1) has attained the age which gives the right to receive the
State old-age pension or whom the State old-age pension has been
granted (including before term) multiplying the object of
contributions by the mandatory contribution rate specified to the
employer for the State pension insurance, parents' insurance, and
maternity and sickness insurance;
2) is a recipient of a service pension or a person with
disability - recipient of State special pension - multiplying the
object of contributions by the mandatory contribution rate
specified for the employee's State pension insurance, disability
insurance, parents' insurance, and maternity and sickness
insurance.
(5) A foreign employee at a foreign employer shall calculate a
mandatory contribution multiplying the object of mandatory
contributions by the mandatory contribution rate specified in
Section 18 of this Law, except for the rate specified for
occupational accident insurance and unemployment insurance,
starting with the 184th day since he or she has been residing in
the Republic of Latvia, or with the 367th day of residence if the
duration of work exceeds 12 months for the person who has been
sent to perform particular work in the territory of the Republic
of Latvia for a time period not longer than 12 months.
(6) A self-employed person (except a natural person who is
performing economic activity and paying a patent fee for it)
shall calculate a mandatory contribution multiplying the object
of contributions by the mandatory contribution rate specified for
self-employed persons.
(7) A domestic employee at a foreign employer shall:
1) calculate a mandatory contribution multiplying the object
of mandatory contributions by the mandatory contribution rate
specified in Section 18 of this Law;
2) if such employee has attained the age which gives the right
to receive the State old-age pension or whom the State old-age
pension has been granted (including before term), calculate a
mandatory contribution multiplying the object of mandatory
contributions by the mandatory contribution rate specified in
Section 18 of this Law, except for the rate specified for
unemployment insurance and disability insurance;
3) if this employee is a recipient of a service pension or a
person with disability - recipient of a State special pension,
the mandatory contribution shall be calculated by multiplying the
object of mandatory contributions by the mandatory contribution
rate specified in Section 18 of this Law, except for the rate
specified for unemployment insurance.
(8) On the next day after the day when the restriction laid
down in Section 11.12, Paragraph two, Clauses 1 and 2
of the law On Personal Income Tax has been reached, the disburser
of a seasonal agricultural workers income (employer) shall
register each seasonal agricultural worker's - income tax payer's
change of status by submitting information on the employees to
the State Revenue Service in accordance with the procedures and
within the time period stipulated by the Cabinet and shall start
to pay mandatory contributions from the income acquired in
seasonal agricultural work in accordance with the general
procedures laid down in this Law.
[10 June 1998; 25 November 1999; 20
June 2001; 6 June 2002; 22 January 2004; 17 March 2005; 8
November 2007; 19 June 2008; 11 December 2008; 3 December 2009;
15 December 2011; 13 March 2014; 22 September 2016]
Section 20.1 Updating of
the Amount of Income from Work and Mandatory Contributions
(1) The employer shall update the income for work and
mandatory contributions of the employee for the previous month
before the accounting month.
(11) [20 December 2016]
(2) If the employer has not updated the income for work and
mandatory contributions of the employee for the previous month
before the reporting month, the employer has the right to update
them within three years after the monthly report submission
deadline specified in law. The income for work and mandatory
contributions of the employee may not reduce as a result of
updating. Updating of the income for work and mandatory
contributions of the employee shall not change the amount of
social insurance services already granted, except for the amount
of the State old-age pension (including the amount of the State
old-age pension granted early.
(21) [20 December 2016]
(3) In addition to that laid down in Paragraphs one and two of
this Section the Cabinet shall determine the cases when the State
Revenue Service, the employer, and the administrator of
insolvency proceedings shall update the income for work and
mandatory contributions of the employee for the previous
reporting months. The amount of the social insurance service
already granted after updating the income for work and mandatory
contributions of the employee shall be changed on the basis of a
submission of the person.
(4) The procedures by which the employer, the State Revenue
Service, and the administrator of insolvency proceedings shall
update the income for work and mandatory contributions of the
employee and the procedures by which mandatory contributions
shall be calculated and paid for persons for whom work income is
compensated in accordance with the Law on Reimbursement of Losses
Caused by State Administration Institutions and the Law on
Compensation for Harm Inflicted in Criminal Proceedings and
Records of Administrative Violations and also by which reports on
mandatory contributions shall be provided shall be determined by
the Cabinet.
(5) The disburser of a seasonal agricultural workers income
(employer) is not entitled to update the submitted information
regarding the seasonal agricultural worker's - income tax payer's
income and his or her calculated income tax.
(6) Within a month after the day which has been fixed for
making the mandatory contributions, a self-employed person has
the right to update the object of mandatory contributions and the
mandatory contributions for the reporting quarter once.
(7) The disburser of royalties (copyright and neighbouring
rights remuneration) shall update royalties (copyright and
neighbouring rights remuneration) and mandatory contributions
from royalties (copyright and neighbouring rights remuneration)
for the previous month prior to the reporting month.
[20 December 2012; 13 March 2014;
30 November 2015; 22 September 2016; 20 December 2016; 27 July
2017; 25 October 2018]
Section 20.2
Determination of the Amount of Mandatory Contributions and
Performance from the Income for Exercising the Right to Purchase
Stocks Granted by an Employer or an Undertaking Related to an
Employer within the Meaning of the Law On Enterprise Income Tax
for Employees with whom Employment Relationship has been
Terminated
(1) Income earned from exercising the right to purchase stocks
granted to an employee by an employer or an undertaking related
to an employer within the meaning of the law On Enterprise Income
Tax, if the employee has terminated employment relationship with
the employer on the day of exercising the right to purchase
stocks, shall apply to the taxation period in which employment
relationship was terminated.
(2) The employer shall calculate mandatory contributions for
each employee with whom employment relationship has been
terminated and who initially was granted the right to purchase
stocks, multiplying the income taxable with personal income tax
specified in Section 8, Paragraph 2.5 of the law On
Personal Income Tax by the rate of mandatory contributions which
was applicable to the employee with whom employment relationship
has been terminated in the last month when employment
relationship existed.
(3) The employer shall perform mandatory contributions (both
the part of the employer and of the employee) from its own
funds.
(4) The employer shall pay the mandatory contributions into
the special budget account for each employee with whom employment
relationship has been terminated and who initially was granted
the right to purchase stocks, within the following time period
indicated in the notification issued by the State Revenue Service
when income from exercising the right to purchase stocks was
earned.
(5) The employer has an obligation to update the amount of
income for work and mandatory contributions until the time period
specified for the performance of mandatory contributions in
accordance with Section 20.1 of this Law for employees
with whom employment relationship has been terminated and to
submit a report to the State Revenue Service on the object of
mandatory contributions and the mandatory contributions from the
income of such employees earned in the reporting month,
implementing the granted right to purchase stocks and alienating
such right, according to the procedures stipulated by the
Cabinet.
[20 December 2012]
Section 20.3 Minimum
Amount of the Object of Mandatory Contributions per Reporting
Month for an Employee and an Employer, its Determination and the
Payment of Mandatory Contributions
[20 December 2016]
Section 21. Procedures and Time
Periods for Making Contributions
(1) An employer shall pay mandatory contributions once a month
into a special budget account for each employee in the time
periods indicated in the notification issued by the State Revenue
Service.
(2) An employee shall make mandatory contributions through his
or her employer. The employer shall deduct the contributions to
be made by the employee and pay them into a special budget
account in the time periods specified in Paragraph one of this
Section.
(21) If an employer has not made social insurance
contributions specified by this Law, a person regarding whom an
employer must have been made them and who has attained the age
that gives the right to receive the State old-age pension may
make social insurance contributions for pension insurance. The
Cabinet shall govern the provisions, time periods, and procedures
by which a person shall make social insurance contributions for
pension insurance.
(3) A self-employed person (except for a natural person who is
performing economic activity and paying patent fee for it) shall
make mandatory contributions by the 15th date of the month
following the reference quarter.
(31) A self-employed person shall make the
mandatory contributions referred to in Section 23.2 of
this Law from the agricultural production income for the previous
taxation year by 15 April of the current year.
(4) A domestic employee at a foreign employer and a foreign
employee at a foreign employer shall make mandatory contributions
by the 15th date of the month following the reference
quarter.
(5) Persons who joined pension insurance, disability
insurance, maternity and sickness insurance, and parents'
insurance voluntarily shall make the voluntary contributions by
the last day of each month.
(6) [20 June 2001]
(7) Late mandatory contributions shall be made in accordance
with the law On Taxes and Duties.
(8) [20 June 2001]
(9) If the payment of paid income for work is delayed, an
employer has an obligation to make mandatory contributions for
the calculated income for work in a time period in which they
should be made if the income for work would be paid timely.
(10) The carrier referred to in Section 35 of the Law on
Carriage by Road shall pay an advance on the mandatory
contributions in the amount of EUR 130 per calendar month for
each taxi carrying passengers into the account specially
established for this purpose. The carrier is entitled to reduce
the payment of the monthly mandatory contributions by the amount
paid in advance. In these cases the provisions laid down in
Section 21.1, Paragraph four of this Law shall not be
applied.
(11) The employer has an obligation to make mandatory
contributions for an employee within a month following the date
on which the court judgement or decision taken by the respective
State administration institution on the collection of the unpaid
work remuneration has come into force.
[10 June 1998; 20 June 2001; 8 November 2007; 3 December
2009;20 December 2010; 23 November 2016; 22 November 2017; 25
October 2018 / The new wording of Paragraph one and
amendments to Paragraphs two, three, 3.1, and four
shall come into force on 1 January 2021 and shall be included in
the wording of the Law as of 1 January 2021. See Paragraph
68 of Transitional Provisions]
Section 21.1 Refund of
Overpaid Contributions
(1) Contributions overpaid within a time period of a calendar
year shall be calculated by the State Social Insurance Agency
within three months after the end of the calendar year in
accordance with the procedures stipulated by the Cabinet.
(11) The State Social Insurance Agency shall inform
the socially insured person regarding the overpaid contributions.
The procedures by which a socially insured person shall be
informed shall be determined by the Cabinet.
(2) The State Social Insurance Agency shall refund the
overpaid contributions of socially insured persons in accordance
with the procedures stipulated by the Cabinet.
(3) The overpaid contributions not exceeding 35 per cent of
the State social insurance benefit are accumulated and refunded
after the end of such calendar year in which they reach or exceed
35 per cent of the State social insurance benefit.
(4) The State Revenue Service shall redirect the overpaid
mandatory contributions of each employer for covering other tax
debts, if any, or include in the payments of following periods,
or refund upon request of the employer.
(5) Upon calculating the overpaid contributions of a person
for the calendar year, the State Social Insurance Agency is
entitled to write off the contribution difference created by
rounding the amount of the contribution but not more than one
euro per one socially insured person.
[25 November 1999; 22 September 2016 / The new wording of
Paragraph 1.1 shall come into force on 1 January
2018. See Paragraph 58 of Transitional Provisions]
Section 21.2 Object of
Mandatory Contributions Exceeding the Maximum Amount of Mandatory
Contributions
(1) The object of mandatory contributions which exceeds the
maximum amount of the object of mandatory contributions specified
in Section 14, Paragraph five of this Law shall be deemed to be
the solidarity tax object.
(2) The mandatory contributions made from the object specified
in Paragraph one of this Section shall be redirected to the
solidarity tax.
(3) The procedures by which the State Social Insurance Agency
shall list, calculate, and pay the solidarity tax shall be
determined by the Cabinet.
[30 November 2015; 27 July
2017]
Section 21.3 Transfer of
the Mandatory Contributions from another Member State in
Accordance with the Regulation
(1) On the basis of the application of a person and
co-operating with the competent authority of another Member
State, the State Social Insurance Agency shall carry out the
transfer of mandatory contributions from another Member State and
inform the State Revenue Service thereof.
(2) The mandatory contributions shall be transferred only for
the previous period about which the State Social Insurance Agency
has agreed with the competent authority of another Member State
and which does not exceed the time period indicated in the
decision on applicable laws (Certificate A1).
(3) Mandatory contributions made in another Member State shall
be transferred into the State social insurance special budget
without late charges.
(4) The transferred mandatory contributions are not
updated.
(5) The State Social Insurance Agency shall calculate and
register the transferred mandatory contributions and the object
of mandatory contributions proportionally, taking into account
the mandatory contribution rate applied to a person either as an
employee or a self-employed person within the respective period
in Latvia. If the amount of the calculated object of mandatory
contributions for the calendar year exceeds the maximum amount of
the object of mandatory contributions, the maximum amount of the
object of mandatory contributions shall be registered for the
respective person. The overpaid transferred mandatory
contributions are not refunded.
(6) The transfer of the mandatory contributions shall not
change the amount of the insurance service granted to the
respective person, except for the old-age pension. After
registering the mandatory contributions, the State Social
Insurance Agency shall, within a month, review the old-age
pension granted to the respective person. The old-age pension
shall be re-calculated starting with the first date of the month
following the month in which the contributions have been
registered.
(7) Within 10 working days after registering the transferred
mandatory contributions, the State Social Insurance Agency shall
ensure their registration also in the participant accounts of the
State funded pension scheme. The mandatory contributions to the
participant accounts of the State funded pension scheme shall be
registered, taking into account the contribution rate of the
State funded pension scheme for the respective period of
time.
[22 September 2016]
Section 21.4 Transfer of
the Mandatory Contributions to Another Member State in Accordance
with the Regulation
(1) Upon request of the competent authority of another Member
State, the State Social Insurance Agency shall hand over to
another Member State the actually made mandatory contributions
for the period of time which has been specified in the decision
to determine the applicable laws (Certificate A1) and shall
inform the State Revenue Service regarding the person whose
mandatory contributions have been transferred and the period of
time for which the mandatory contributions have been
calculated.
(2) After receiving the information referred to in Paragraph
one of this Section from the State Social Insurance Agency, the
State Revenue Service shall revoke the information included in
the employer's report.
(3) The mandatory contributions shall be transferred from the
expenditures of each of the State social insurance special budget
in accordance with the share of each special budget in accordance
with the Law on the State Budget for the respective year.
(4) The mandatory contributions for the months which have been
taken into account in calculating the sums for a social service
are not transferred.
(5) After transferring the mandatory contributions, the State
Social Insurance Agency shall review the respective person's
rights to a social insurance service or the amount of the service
granted to him or her. If a person loses his or her rights to a
social insurance service or the amount of the service changes,
the State Social Insurance Agency, starting with the first date
of the month following the month in which the contributions have
been transferred, shall terminate the payment of the social
insurance service or review the amount of the service.
(6) If in the period regarding which the mandatory
contributions must be transferred the respective person is a
participant of the State funded pension scheme, the State Social
Insurance Agency shall give the manager of the State funded
pension scheme funds the task to transfer the funded pension
capital accrued by the person into the State pension special
budget within five working days prior to the transfer of the
mandatory contributions. If after transfer of the contributions
the participant of the State funded pension scheme is no more a
socially insured person (is not subject to State pension
insurance), the State Social Insurance Agency shall ensure the
closure of the State funded pension scheme participant's
account.
[22 September 2016; 22 November
2017]
Section 22. Inclusion of Mandatory
Contributions in Special Budget Accounts
(1) The Treasury shall daily pay mandatory contributions into
special budget accounts and the State basic budget revenue in
conformity with the proportion of the social insurance revenue
specified in the State annual budget law.
(2) If, upon planning the State annual budget law, income and
surplus of resources of previous years do not cover annual budget
expenditures in any of the special budgets, but there is a
surplus in another special budget, upon calculating the
proportion of each special budget income, the financing for
covering of budget expenditures shall be included.
[25 November 1999; 16 June 2009; 20 December 2012; 27 July
2017 / The new wording of Paragraph one shall come into
force on 1 January 2018. See Paragraph 65 of Transitional
Provisions]
Section 23. Report on Mandatory
Contributions
(1) By the time period specified for making mandatory
contributions, the employer has an obligation, once a month, to
submit a report on the object of mandatory contributions and the
mandatory contributions from the income for work of employees in
a reporting month to the State Revenue Service in accordance with
the procedures stipulated by the Cabinet.
(11) The employer who updates the income for work
of an employee and mandatory contributions in accordance with the
procedures laid down in Section 20.1, Paragraph two of
this Law, may update once each reporting month.
(12) The disburser of a seasonal agricultural
workers income (employer) has the obligation within five working
days after the last day of the month in which he or she has
gained income to submit to the State Revenue Service an
employer's report on the income of the seasonal agricultural
worker - income tax payer, and the calculated seasonal
agricultural workers income tax in the reporting month. The
procedures by which the disburser of a seasonal agricultural
workers income (employer) shall submit employer's report to the
State Revenue Service shall be determined by the Cabinet.
(13) [20 December 2016]
(14) The State Revenue Service shall not accept
employer's reports in which the information regarding the
employees does not conform to the employees' status periods.
(15) The disburser of royalties (copyright and
neighbouring rights remuneration) shall submit to the State
Revenue Service a report on the contributions made for pension
insurance from royalties (copyright and neighbouring rights
remuneration) once a month by the date specified for making
mandatory contributions in accordance with the procedures
stipulated by the Cabinet.
(2) By the time period specified for making mandatory
contributions, self-employed persons (except for a natural person
who is performing economic activity and paying a patent fee for
it), domestic employees at a foreign employer and foreign
employees at a foreign employer have an obligation to submit to
the State Revenue Service a report on the object of mandatory
contributions and the mandatory contributions in accordance with
the procedures stipulated by the Cabinet.
(21) A self-employed person has an obligation to
submit to the State Revenue Service a report on the object of
mandatory contributions and mandatory contributions from the
agricultural production income for the previous taxation year by
15 April of the current year in accordance with the procedures
stipulated by the Cabinet.
(3) In accordance with the procedures stipulated by the
Cabinet the State Revenue Service shall submit to the State
Social Insurance Agency information regarding social insurance
contributions made and the social tax payments made. The State
Social Insurance Agency shall, according to the procedures
stipulated by the Cabinet, register the mandatory payments and
social tax payments and shall recalculate the mandatory payment
object if such payments have not been made to the full
amount.
(4) The State Social Insurance Agency, on the basis of a
socially insured person personally requesting or submitting in
writing a request at any office of the State Social Insurance
Agency, shall issue or send without charge information regarding
the status of the insurance accounts of such person.
(5) The State Revenue Service has the right to update and
correct the information submitted by the performers of mandatory
contributions, if mistakes have been encountered in the
information submitted by the performers of mandatory
contributions or reports regarding mandatory contributions on the
basis of the information provided by other State institutions. In
such case the State Revenue Service shall, within 10 working
days, inform the performer of mandatory contributions regarding
the corrections made.
(6) The employer has an obligation to submit the information
referred to in Paragraph one of this Section to the State Revenue
Service within a month following the date on which the court
judgement or decision taken by the respective State
administration institution on the recovery of remuneration for
forced absence from work or work income not paid in a timely
manner has entered into effect. If the employer fails to submit
the abovementioned information, the State Revenue Service shall
update the report of the employer on the object of mandatory
contributions and mandatory contributions on the basis of an
application submitted by the person and the submitted court
judgment or decision taken by the respective State administration
institution, dividing the object of mandatory contributions and
mandatory contributions proportionately for the entire period,
unless the division arises from the court judgment or decision by
the institution.
[25 November 1999; 20 June 2001; 17 March 2005; 15 June
2006; 19 June 2008; 16 June 2009; 3 December 2009; 20 December
2012; 13 March 2014; 30 November 2015; 23 November 2016; 20
December 2016; 27 July 2017; 22 November 2017; 25 October 2018
/ Amendments to Paragraph one, 1.5, two, and
2.1 in relation to performance of activities on
specific dates shall come into force on 1 January 2021 and shall
be included in the wording of the Law as of 1 January 2021.
See Paragraph 68 of Transitional Provisions]
Chapter
V.1
Mandatory Contributions for Pension Insurance
from Royalties (Copyright and Neighbouring Rights Remuneration)
and Income of a Self-employed Person
[27 July
2017]
Section 23.1 Mandatory
Contributions for Pension Insurance from Royalties (Copyright and
Neighbouring Rights Remuneration)
(1) The disburser of royalties (copyright and neighbouring
rights remuneration), except for the collective management
organisation of economic rights, shall pay from own funds
mandatory contributions in the amount of five per cent of the
relevant royalties (copyright and neighbouring rights
remuneration) for State pension insurance of the recipient
thereof.
(2) The disburser of royalties (copyright and neighbouring
rights remuneration) shall make mandatory contributions into a
special budget account by the date specified in the report issued
by the State Revenue Service.
(3) Contributions made from royalties (copyright and
neighbouring rights remuneration) in favour of a person who
receives royalties shall be registered by the State Social
Insurance Agency for State pension insurance of the person who
receives royalties.
(4) A person who receives royalties, has been registered and
is socially insured as an employee and for whom mandatory
contributions within a month at one or several employers are made
from the object of contributions which is equal to or exceeds the
amount of the minimum monthly wage stipulated by the Cabinet need
not register and need not make any contributions from royalties
as a self-employed person.
(5) The condition of Paragraph four of this Section regarding
mandatory contributions from the minimum wage shall not be
applied proportionately for those calendar days of the taxation
year on which a person who receives royalties is on a child care
leave, on which an employee (child's father) has been granted a
leave in relation to the childbirth, on which the employee is on
a leave without retaining work remuneration that has been granted
to an employee to whom a child to be cared is given under the
care and supervision in accordance with a decision of the
Orphan's and Custody Court before approval of the adoption, as
well as for those calendar days of temporary incapacity for work,
prenatal and maternity leave for which sick-leave certificate B
is issued.
(6) Paragraph four of this Section is not applied to a person
who receives royalties, is an employee of a micro-enterprise or a
person who within the meaning of the law On Personal Income Tax
is employed in seasonal agricultural work and pays the seasonal
agricultural worker income tax.
(7) The disburser of royalties (copyright and neighbouring
rights remuneration) shall not make the mandatory contributions
specified in Paragraph one of this Section for persons who
receive royalties and for whom the Republic of Latvia is not the
permanent place of residence.
[27 July 2017; 22 November
2017]
Section 23.2 Mandatory
Contributions for Pension Insurance for Self-employed Persons
(1) Self-employed persons [except for persons receiving
royalties (copyright and neighbouring rights remuneration) for
whom mandatory contributions are made in accordance with the
procedures specified in Section 23.1 of this Law]
shall make mandatory contributions for pension insurance at least
in the amount of five per cent:
1) if the monthly income of a self-employed person is equal to
or exceeds the minimum amount of the object of mandatory
contributions stipulated by the Cabinet - shall make mandatory
contributions once a quarter for State pension insurance from the
difference of freely selected mandatory contribution objects and
the actual income in addition to the object of mandatory
contributions specified in Section 14, Paragraph two of this
Law;
2) if the monthly income of a self-employed person does not
reach the minimum amount of the object of mandatory contributions
stipulated by the Cabinet - shall make mandatory contributions
for State pension insurance once a quarter. The self-employed
person shall make mandatory contributions for pension insurance
from such month of the taxation year in which income from the
beginning of the year is equal to EUR 50, whereas mandatory
contributions shall not be made from the income which does not
exceed EUR 50 from the beginning of the year.
(2) A self-employed person shall calculate mandatory
contributions for pension insurance from the agricultural
production income and shall make the contributions once a year at
least in the amount of five per cent from the difference of
freely selected mandatory contribution objects and the actual
income.
[27 July 2017; 22 November 2017; 25
October 2018]
Section 23.3 Registration
of Mandatory Contributions for Pension Insurance in the Accounts
of Persons
(1) The State Social Insurance Agency shall register the
object of mandatory contributions for pension insurance and the
pension capital of a person by applying the mandatory
contribution rate for pension insurance according to mandatory
contributions actually made from royalties (copyright and
neighbouring rights remuneration) and mandatory contributions
actually made for pension insurance by a self-employed
person.
(2) Mandatory contributions for pension insurance made in
accordance with Section 23.1 and Section
23.2, Paragraph one, Clause 2 and Paragraph two of
this Law shall not form the funded pension capital of the
person.
[27 July 2017; 25 October 2018]
Chapter
VI
State Mandatory Social Insurance Administration
Section 24. State Social Insurance
Agency
(1) By 31 December 2003:
1) the State Social Insurance Agency (hereinafter - the
Agency) is a non-profit organisation State stock company which
operates in accordance with this Law, the law On Non-profit
Organisations, the law On Stock Companies, other laws and
regulations and its articles of association;
2) the Agency is a legal person, it has its own current
accounts in banks and its own seal;
3) the Agency is the manager of the budgets specified in
Section 7 of this Law;
4) the operation of the Agency is controlled by a council
appointed by the Cabinet which council includes representatives
recommended by the Minister for Welfare;
5) the chair of the council of the Agency is the Minister for
Welfare, as well as the representative of the holder of State
capital shares in the Agency;
6) the Cabinet shall appoint the Director-General of the
Agency upon recommendation from the Minister for Welfare.
(2) From 1 January 2004:
1) the Agency is a State agency supervised by the Ministry of
Welfare which implements State policy in the field of social
insurance and State social benefits;
2) the Agency is engaged in the administration of special
budgets, as well as in administration of social insurance
services and State social benefits transferred to the competence
of the Agency in accordance with laws and regulations;
3) the Agency territorial units are Agency offices.
(3) From 1 January 2011 the Agency shall administer service
pensions that have been granted in accordance with Law on the
Service Pension of State and Local Government Professional
Orchestra, Choir, Concert Organisation, Theatre and Circus
Artists and the Allowance for Creative Work of Ballet Artists,
the Law on the Service Pension of Judges, the Law on the Service
Pension of Diplomats, the Law on the Service Pension of Officials
of the Corruption Prevention and Combating Bureau, the Law on the
Service Pension of Prosecutor, the law On the Service Pensions of
Employees with Special Service Ranks Working in the System of the
Ministry of the Interior, and the by-laws On Pensions of
Rank-and-file and Commanding Officers of the Institutions of
Interior (Employers Pensions), and service pensions of the
officials of State security institutions which have been granted
in accordance with the Law on Service Pensions of Officials of
State Security Institutions (hereinafter - the service
pensions).
(4) From 15 January 2013 the Agency shall be a State authority
of direct administration under supervision of the Minister for
Welfare which carries out the functions specified in Paragraphs
two and three of this Section.
[3 April 2003; 22 January 2004; 20
December 2010; 20 December 2012; 25 October 2018]
Section 24.1 Social
Insurance Information System
The Social Insurance Information System (SIIS) is a State
information system which, in accordance with the procedures laid
down in the laws and regulations, includes information received
from the State and local government authorities, natural and
legal persons, including personal data in order to ensure the
records of socially insured persons, the granting and payment of
social insurance services, State benefits and service pensions,
the control of the outturn of the State budget funds as well as
high quality performance of the Agency's other functions of the
Agency. The Agency shall be the manager of the System.
[22 September 2016]
Section 24.2 Access Point
for Electronic Receipt of Information and Transfer to Other
Member States
(1) The Agency shall ensure the functioning of the access
point referred to in Article 4 of Regulation (EC) No 987/2009 of
the European Parliament and of the Council of 16 September 2009
laying down the procedure for implementing Regulation (EC) No
883/2004 on the coordination of social security systems (Text
with relevance for the EEA and for Switzerland) in the Republic
of Latvia for electronic exchange of information with other
Member States in the fields of social security referred to in
Article 3 of the referred to Regulation No 883/2004. The Access
Point is a State information system and the Agency is the manager
thereof.
(2) Information received at the Access Point and related to
the execution of the functions of the Agency shall be processed
in the SIIS.
(3) Information received at the Access Point and related to
the execution of the functions of the National Health Service is
automatically forwarded to the National Health Service where such
information is processed in accordance with the procedures laid
down in the laws and regulations regarding the procedures for
organising health care services and payment.
(4) The Agency and the National Health Service shall use the
Access Point for transferring information at the disposal of the
institution to other Member States within the limits of the
competence of the institution in the field of social
security.
[25 October 2018 / Section shall come into force on
1 January 2019. See Paragraph 69 of Transitional
Provisions]
Section 24.3 Exchange of
Information within the Framework of Social Security Contracts
The Agency shall send to and receive from the states with
which contracts in the field of social security have been
concluded information related to the execution of the functions
of the Agency. The Agency shall process the received information
in the SAIIS.
[25 October 2018 / Section shall come into force on
1 January 2019. See Paragraph 69 of Transitional
Provisions]
Section 25. Financing the Operation
of the Agency
(1) Until 31 December 2003 the operation of the Agency shall
be financed from the special budgets in accordance with the
procedures specified in law, as well as from funds acquired by
the Agency as a result of entrepreneurial activities provided for
in the articles of association.
(2) As of 1 January 2004 the operation of the Agency shall be
financed from the special budget revenue earmarked for particular
purposes, from other special purpose earmarked income, from
donations and gifts, foreign financial assistance resources, as
well as from own revenue.
[3 April 2003; 22 January 2004]
Section 26. Financing the Operation
of the Agency
[3 April 2003]
Section 26.1 Request for
the Services Administered by the Agency
(1) A person shall submit a request for a social insurance
service, a State social benefit, and a service pension and the
documents necessary for granting thereof in person or
electronically to one of the Agency's departments. If the
respective documents are sent electronically, they should be
drawn up in accordance with the laws and regulations governing
electronic documents.
(2) A person may send a request for a social insurance service
(except for a State pension) and a State social benefit and the
documents necessary for granting thereof by mail or submit them
through an authorised person.
(3) A person may request the available services administered
by the Agency in the joint State and local government services
online portal www.latvija.lv by using the authentication means
offered by the portal.
[12 March 2015 / Paragraph three
shall come into force on 1 July 2015. See Paragraph 52 of
Transitional Provisions]
Section 27. Dispute or Appeal of
Administrative Acts issued by the Agency, Extension of Time
Period for Issuance Thereof
(1) A person may dispute to the director of the Agency
administrative acts issued by Agency officials or actual actions
thereof within one month from the day of the entering into effect
of the administrative act. The decision of the director of the
Agency may be appealed to a court within one month from the day
of the entering into effect of the decision of the director.
(2) The submitting of a submission to the director of the
Agency or the submitting of an application to a court shall not
suspend the execution of an administrative act issued by the
Agency. The director of the Agency is entitled, by a written
decision, to suspend the execution of an adverse administrative
act of an addressee if a submission has been received from the
person regarding the suspension of the execution of the
administrative act.
(3) The director of the Agency has the right, with a motivated
decision, to extend the time period for issuance of an
administrative act up to three years from the day of receipt of a
person's request, if a lasting determination of facts is required
for granting of social insurance services or State social
benefits in relation to the receipt of information from a
competent foreign institution. A decision of the director of the
Agency to extend a time period may be appealed to court.
[22 January 2004; 16 June 2009]
Section 27.1 Recovery of
Overpayments of Social Insurance Services, State Social Benefits
and Service Pensions
(1) The Agency shall recover the overpaid sums of social
insurance services, State social benefits, and service pensions
for not more than a three year period counting from the day of
detecting the overpayment, but in cases which for establishing
the overpayment need information from a competent authority of a
foreign country - for not more than a three year period within
six years starting from the day of detecting the overpayment. The
Agency shall initiate enforcement activities in order to recover
the overpaid sums for a social insurance service, a State social
benefit, or a service pension granted to the respective person
within one year after the deadline for voluntary execution has
expired in accordance with the procedures specified in the
Administrative Procedure Law by applying the limitation periods
and the conditions for terminating the limitation periods
specified in the Civil Procedure Law.
(2) If the social insurance service, State social benefit, or
service pension has been granted to a person, the Agency shall
perform deductions for recovery of the overpayment of social
insurance service, State social benefit, or service pension in
amount of 10 per cent from each granted social insurance service,
State social benefit, or service pension. Deductions shall not be
made from a childbirth allowance, a one-time benefit to a
surviving spouse, a funeral benefit, and a compensation for
additional expenses due to an accident at work or an occupational
disease.
(3) The State Revenue Service shall, in accordance with the
procedures stipulated by the Cabinet, refund the Agency the
personal income tax deducted from the overpaid service upon
request of the Agency to refund the sum of the tax paid into the
State budget revenues. If the person has already regained the
personal income tax by submitting a personal income tax return,
he or she has an obligation to refund the personal income tax
deducted for the service and paid into the special budget.
(4) If a person has not been granted a social insurance
service, a State social benefit, or a service pension or the
payment for the abovementioned services has been terminated, the
administrative act shall be forwarded to a bailiff for enforced
recovery, on the basis of the Agency official's executive order
in accordance with the procedures and within the time limit
specified in the Civil Procedure Law. On the basis of the Agency
official's executive order, the Agency shall forward the
administrative act to a bailiff for enforced recovery also in
case the respective person continues to receive the service and
on the day of detecting the overpayment the sum thereof exceeds
five times the monthly amount of the social insurance service,
the State social benefit, and the service pension.
(5) If at the time when the Agency makes deductions due to the
overpayment of a social insurance service, a State social
benefit, or a service pension, the bailiff's order for the
recovery of the debt from the abovementioned services has been
received, the Agency shall collect the debt for the benefit of
other debt collectors after it has deducted the overpayment for a
social insurance service, a State social benefit, or a service
pension.
(6) If the overpayment of social insurance service, State
social benefit, or service pension has occurred in relation to
death or disappearance of a person, a credit institution or
akciju sabiedrība "Latvijas Pasts" [State stock
company Latvijas Pasts] shall, upon request of the Agency in
writing, repay the overpayment caused from the account of the
person to the Agency, transferring into the account specified in
the request of the Agency and deducting the commission of the
credit institution or State stock company Latvijas Pasts
for the performance of the transfer. Repayment shall be made in
such amount which does not exceed the funds available in the
account of the dead person in the credit institution or in the
postal payment system (PPS).
(7) If the Agency grants a social insurance service, a State
social benefit, or a service pension for a time period during
which any of these services has already been paid for, and the
laws and regulations do not provide for concurrent receipt of the
abovementioned services, the amount of the granted service costs
shall be reduced by the amount of the service disbursed (granted)
previously. In this case the amount of a service payable to a
person in the first month shall not be less than the monthly sum
of the granted service.
(8) If until the day of death of the person the Agency
disburses the unpaid social insurance service, the State social
benefit, or the service pension to the spouse, the first or
second degree relatives or in cases specified in laws to another
person on the basis of an inheritance certificate or a court
ruling, the payable sum shall be reduced by the amount of the
overpayment for the abovementioned services.
(9) If an employer, on the basis of a court ruling, reimburses
a person for forced absence from work or makes other payments
resulting from the legal employment relationship and the laws and
regulations do not provide for a concurrent receipt of the
abovementioned services and the income gained from the employer
for the time when the respective person received a social
insurance service, a State social benefit, or a service pension,
the person has an obligation to refund the sum of the granted
service to the Agency. In such case the provisions of Paragraph
one of this Section on the overpayment period and the deadlines
for its recovery shall not be applied.
(10) The recovered overpayments of social insurance services,
State social benefits, and service pensions shall be transferred
into the respective special budget or State basic budget from
which the overpaid social insurance service, State social
benefit, or service pensions were financed.
[22 September 2016; 22 November 2017 / Paragraph
three shall come into force on 1 January 2018. See Paragraph
58 of Transitional Provisions]
Section 28. Right to Write off the
Overpayment Sums of Social Insurance Services, State Social
Benefits and Service Pensions
The Agency shall write off and exclude from the balance sheet
the recorded overpayment sums which have resulted due to the
fault of the recipients of social insurance services, State
social benefits, and the service pensions and whose recovery is
impossible due to the limitation period for the execution of the
administrative act or the debtor has died and the sum of the debt
does not exceed 35 per cent of the State social insurance benefit
or if the person has no declared place of residence or his or her
place of residence is outside Latvia and more than six years have
passed after the administrative act has come into force. If the
respective person has died, the Agency shall recover the
overpayment which exceeds two minimum monthly wages stipulated by
the Cabinet in accordance with the procedures laid down in the
laws and regulations.
[22 September 2016]
Section 28.1 Adjusting False Information in the
Employers' Reports
The Agency, according to the information at its disposal,
shall update and register the false information regarding the
mandatory contributions and the object of mandatory contributions
indicated in the employer's report, if the employer has not
eliminated the mistakes in his or her report within three
years.
[22 September 2016]
Section 29. Delivery of Social
Insurance Services, State Social Benefits and Service Pensions at
the Place of Residence
If a person receives several services (for example, pensions,
benefits) administered by the Agency at the place of residence
and in accordance with laws and regulations a fee is intended for
delivery at the place of residence for each of them, the Agency
shall collect one fee for delivery on the basis of the larger
amount of the service to be disbursed.
[20 December 2010]
Transitional
Provisions
1. Section 5, Paragraph four of this Law (as of 20 June 2001)
shall be applied from 14 March 2001.
[20 June 2001; 17 March 2005]
2. The rate of mandatory contributions specified in Section
18, Paragraph one of this Law and the distribution thereof
between the employer and an employee shall enter into effect on 1
January 2003.
[20 June 2001]
3. From 1 January 1998 to 31 December 1999 the rate of
mandatory contributions shall be 37 per cent from which 28 per
cent shall be paid for by an employer and 9 per cent - by an
employee.
[25 November 1999]
4. With the coming into force of this Law, the law On Social
Tax (Latvijas Republikas Saeimas un Ministru Kabineta
Ziņotājs, 1996, No. 1, 7, 15) is repealed, but:
1) persons making social insurance contributions shall
calculate and pay mandatory social insurance contributions in
conformity with the social tax object and rates specified in the
law On Social Tax (Latvijas Republikas Saeimas un Ministru
Kabineta Ziņotājs, 1996, No. 3, 21, 29) from all income for
work of socially insured persons which has been calculated for
the time period from 1 January 1991 to 31 December 1995, but paid
after 1 January 1996. The State Revenue Service shall control the
accuracy of the calculation and payment of social insurance
contributions for this time period;
2) persons making social insurance contributions shall
calculate and make social insurance mandatory contributions in
conformity with the social tax object and rates specified in the
law On Social Tax (Latvijas Vēstnesis, 1996, No. 1, 7, 15) from
all income for the work of socially insured persons which has
been calculated for the time period from 1 January 1996 to 31
December 1997, but paid after 1 January 1998. The State Revenue
Service shall control the accuracy of the calculation and payment
of social insurance contributions for this time period.
5. Applications for the transfer of the social tax payment to
be made within the time period between 1 January 1995 and 31
December 1997 shall be submitted to the State Revenue Service by
31 December 1998.
6. Late and unpaid social tax payments, increase in the amount
of principal debt, and late charges which have been formed by 31
December 1997 shall be charged in the following order - principal
debt for the time period between 1 January 1996 and 31 December
1997, principal debt for the time period between 1 January 1991
and 31 December 1995, increase in the amount of the principal
debt and late charges for the time period between 1 January 1991
and 31 December 1997.
7. In 1998 funds from the State pension special budget,
employment special budget, occupational accident special budget
and from the disability, maternity and sickness special budget
shall be included in the State basic budget for commencing the
administration of State social insurance contributions in
conformity with the proportion of special budgets in the amount
of social insurance service financing in 1998.
8. Section 16, Paragraph two of this Law shall come into force
on 1 January 1999. By 31 December 1998 late charges shall be
recovered from the employer and self-employed persons for a
missed time period for making contributions - 0.1 per cent for
each late day from the part of mandatory contributions not paid
in time.
[10 June 1998]
9. Section 21, Paragraph seven of this Law shall come into
force on 1 January 1999. By 31 December 1998, the overdue and
outstanding social insurance mandatory contributions shall have
to be made in the following order: the principal debt, increase
in the principal debt, and late charges.
[10 June 1998]
10. Section 21, Paragraph nine of this Law shall come into
force on 1 January 1999.
[10 June 1998]
11. Section 1, Clause 3, Sub-clause "i" and Section 6,
Paragraph seven of this Law, as well as amendments to Section 6,
Paragraph three determining the types of insurance to which
self-employed persons who have attained the age giving the right
to receive the State old-age pension, and the first and second
group disabled persons are subject, shall come into force on 1
January 1998.
[10 June 1998]
12. From 1 January 2000 to 31 December 2002 the rate of
mandatory contributions and distribution thereof between the
employer and the employee shall be as follows:
1) from 1 January 2000 the rate of mandatory contributions
shall be 36 per cent from which 27 per cent shall be paid by an
employer and 9 per cent - by an employee;
2) from 1 January 2001 the rate of mandatory contributions
shall be 35 per cent from which 26 per cent shall be paid by an
employer and 9 per cent - by an employee;
[20 June 2001]
13. By 31 December 2000 domestic employees at a foreign
employer shall submit to the State Revenue Service a report on
the object of mandatory contributions and contributions made in
accordance with the procedures laid down in Section 23, Paragraph
two of this Law.
[25 November 1999]
14. Amendments to Section 1, Clause 3 of this Law, except for
Sub-clauses "b" and "j", amendments to Section 5, Paragraph three
in relation to the voluntary joining of a spouse of a
self-employed person to disability insurance, maternity and
sickness insurance, Section 6, Paragraph ten, amendments to
Section 12, Paragraph two, Section 13, Paragraph three,
amendments to Section 17, amendments to Section 18, Paragraph
three, amendments to Section 19, Clause 5, amendments to Section
20, Paragraph five, amendments to Section 22 and Section 23,
Paragraphs one and two of this Law shall come into force on 1
January 2001.
[25 November 1999]
15. Cancellation of the principal debt of the capitalised
social tax payment and late charges related thereto in accordance
with Section 25 of the law On Taxes and Duties shall have the
same legal consequences as the payment of the principal debt of
such tax payment and late charges.
[25 November 1999]
16. Clause 15 of these Transitional Provisions shall also
apply to the principal debt of the capitalised social tax payment
and cancellation of late charges related thereto which has been
performed from 1 January 1998 by the day of coming into force of
this Law.
[25 November 1999]
17. If an employer has not made the mandatory contributions in
full by 13 March 2001 (inclusive), the paid amount shall be
distributed proportionally between the employees of the
respective employer.
[20 June 2001]
18. Section 20, Paragraph five of this Law shall come into
force on 1 January 2003. From 1 January 2001 to 31 December 2002
a foreign employee at a foreign employer shall calculate a
mandatory contribution multiplying the object of mandatory
contributions by the mandatory contribution rate specified for
the employee if the employee has been insured in all types of
social insurance, except for a rate specified for occupational
accident insurance and unemployment insurance, starting with the
184th day after the arrival in the Republic of Latvia or the
367th day if the duration of work exceeds 12 months for the
persons who have been sent to perform particular work in the
territory of the Republic of Latvia for a time period not longer
than 12 months.
[20 June 2001]
19. Section 1, Clause 3, Sub-clause "c" (as of 20 June 2001)
and Section 6, Paragraph thirteen of this Law shall be applied
from 1 January 2001.
[20 June 2001]
20. A person who is an employee in accordance with Section 1,
Clause 2 of this Law and receives concurrently a royalty has the
right in 2001 not to make social insurance mandatory
contributions from the income acquired in the form of a royalty.
If in 2001 the referred to person chooses to make concurrently
also social insurance mandatory contributions from the income
acquired in the form of a royalty such contributions shall be
made in conformity with the social insurance contribution rate
specified for self-employed persons and in accordance with time
periods and procedures specified for self-employed persons.
[27 July 2001]
21. Amendments to Section 5; Paragraph one, Section 6,
Paragraph four, Clause 1 and Paragraph five, Clause 1 in relation
to persons performing alternative service, as well as Section 6,
Paragraphs fifteen and sixteen shall come into force on 1 July
2002.
[6 June 2002]
22. Section 1, Clause 3, Sub-clause "l" and Section 6,
Paragraph fourteen, as well as amendments to Section 14,
Paragraph seven shall be applied from 1 January 2002.
[6 June 2002]
23. Amendments to the Law of 6 June 2002 to Section 6,
Paragraph two in relation to subjecting of employees - Group I or
II disabled persons to disability insurance, to Section 6,
Paragraph three in relation to subjecting of self-employed
persons - Group I or II disabled persons to disability insurance,
to Section 6, Paragraph nine in relation to subjecting of
domestic employees at a foreign employer - Group I or II disabled
persons to disability insurance, as well as to Section 20,
Paragraphs three, four, and seven in relation to subjecting of
domestic employees at a foreign employer - Group I or II disabled
persons to disability insurance shall come into force on 1
January 2003.
[6 June 2002; 17 March 2005]
24. Cabinet Regulation No. 436 of 23 December 1997, Articles
of Association of the Non-profit-making Organisation the State
Stock Company "Valsts sociālas apdrošināšanas aģentūra" [State
Social Insurance Agency], shall be applied until 31 December
2003.
[3 April 2003]
25. Amendments to Section 6, Paragraphs two and nine and
Section 20, Paragraph three, Clause 2, Paragraph four, Clause 2,
and Paragraph seven, Clause 3 in relation to those employees not
being subject to insurance against unemployment who receive a
service pension or who are Group III disabled persons -
recipients of State special pensions, shall come into force on 1
July 2004.
[22 January 2004]
26. From 1 January 1991 to 13 March 2001 (inclusive) a person
is socially insured starting from the day when he or she has
acquired the status of an employee [was registered with the
mandatory payments (social tax) administration in accordance with
the procedures laid down in laws and regulations] or has been
called up for mandatory active military service irrespective of
the fact whether actual mandatory payments (social tax) have been
made.
[17 March 2005; 19 June 2008; 22
November 2017]
27. If for the persons referred to in Paragraph 26 of these
Transitional Provisions, the mandatory payments (social tax)
administration has not registered the mandatory payments (social
tax) object in conformity with the provisions of Section 14,
Paragraph one of this Law, the mandatory payments (social tax)
object shall be the minimum wage stipulated by the Cabinet for
the respective time period.
[17 March 2005]
28. Amendments to Section 1, Clause 4 of this Law in relation
to persons who are employed by another Member State employer and
to whom, in accordance with Articles 13, 14, 15, 16, and 17 of
the Regulation, laws and regulations of the Republic of Latvia
are applicable, shall come into force on 1 January 2006.
[17 March 2005]
29. Amendments to Section 6, Paragraph two of this Law in
relation to employees - Group I and II disabled persons being
subject to insurance against unemployment, Paragraph nine in
relation to domestic employees at a foreign employer - Group I
and II disabled persons being subject to insurance against
unemployment, as well as Section 20, Paragraphs three, four, and
seven in relation to employees and domestic employees at a
foreign employer - Group I and II disabled persons being subject
to insurance against unemployment, shall come into force on 1
January 2006.
[17 March 2005]
30. Amendments to Section 6, Paragraph five of this Law in
relation to recipients of maternity benefits being subject to
insurance against unemployment shall come into force on 1 January
2006.
[17 March 2005]
31. Amendments to Section 6, Paragraphs eight and nine and
Section 20, Paragraph seven of this Law in relation to domestic
employees at a foreign employer being subject to insurance
against occupational accidents shall come into force on 1 January
2006.
[17 March 2005]
32. Section 6, Paragraph seventeen of this Law shall come into
force on 1 January 2006.
[17 March 2005]
33. The new wording of Section 18, Paragraph one of this Law
regarding the specification of rates of mandatory payments if the
employee has been insured in all types of social insurance to the
amount of 33.09 per cent of which 24.09 per cent is paid by the
employer and 9 per cent by the employee shall come into force on
1 January 2006.
[17 March 2005]
34. Until the day when the Law comes into force which will
specify the future status of an individual undertaking, in
addition to the persons referred to in Section 1, Clause 2 of
this Law, the following shall be deemed employers:
1) an owner of an individual undertaking (which is founded in
order to operate with craft activities within the meaning of the
law On Craft Activities) who not being in legal employment
relationship with the administrative authority of his or her
undertaking performs the operational management function of such
an undertaking if, in accordance with the procedures specified in
law, a manager (director) has not been appointed (elected) in
such undertaking, and his or her object of mandatory
contributions is his or her own selected amount which is not less
than the minimum wage stipulated by the Cabinet;
2) a manager (director) of an individual undertaking appointed
(elected) in accordance with the procedures specified in law who
not being in legal employment relationship with such an
undertaking performs the management function of such an
undertaking, and his or her object of mandatory contributions is
his or her specified remuneration, but if a remuneration is not
determined - his or her own selected amount which is not less
than the minimum wage stipulated by the Cabinet.
[27 October 2005]
35. If the persons referred to in Paragraph 34 of these
Transitional Provisions have not determined for themselves an
object of mandatory contributions or it is less than the amount
of the minimum wage stipulated by the Cabinet and there is no
supporting document which attests thereto, the tax administration
shall recover from the employer the mandatory contributions and
fines in the amount of three times the mandatory contribution
from the amount that conforms to the amount of the minimum wage
stipulated by the Cabinet.
[27 October 2005]
36. Amendments to Section 5, Section 6, Paragraph four, and
Section 19 of this Law in relation to persons who receive a care
for a disabled child benefit shall come into force on 1 January
2006.
[27 October 2005]
37. Amendments to the introductory part of Section 1, Clause 3
and to Section 14, Paragraph two regarding the payers of a fixed
income tax as well as to Section 6, Paragraph 3.1
shall come into force on 1 September 2008. Self-employed persons
who pay the fixed income tax from 2008 and who have not made
mandatory contributions from 1 January 2008 to 31 August 2008
have the right of choosing to make mandatory contributions for
this period. Mandatory contributions for the period starting from
1 January 2008 until 31 August 2008 shall be made until 15
October 2008 and a late charge shall be applied to them.
[19 June 2008]
38. Amendments to Section 5, Paragraph one, Section 6,
Paragraphs four and five of this Law in relation to subjecting of
persons to pension insurance and unemployment insurance who
receive paternity benefit shall come into force on 1 January
2009.
[19 June 2008]
39. Section 6, Paragraph 5.1 of this Law and
amendments to Section 19 in relation to subjecting of persons to
disability insurance who receive maternity or paternity benefit,
or who take care of a child who has not attained one and a half
years of age and receive an allowance for child care, or who take
care of a child who has not attained the age of one year and
receive parenting benefit shall come into force on 1 January
2009.
[19 June 2008]
40. Amendments to Section 6, Paragraphs two and nine, Section
20, Paragraph three, Clause 2, Paragraph four, Clause 2, and
Paragraph seven, Clause 3 of this Law in relation to disability -
subjecting of the recipient of the State special pension to the
types of social insurance - shall come into force on 1 January
2009.
[19 June 2008]
41. Amendments to Section 13, Paragraph two of this Law shall
come into force on 1 January 2009.
[19 June 2008]
42. Amendments to Section 14, Paragraph seven of this Law in
relation to the contributions made by the employer in private
pension funds in favour of the employee not to be included in the
object of mandatory contributions in conformity with pension
schemes and paid in insurance premium sums shall come into force
on 1 January 2009.
[19 June 2008]
43. The restriction of the maximum amount of the object of
mandatory and voluntary contributions (the rights to determine
the maximum amount of the object that are delegated to the
Cabinet) provided for in Section 14, Paragraphs five and six of
this Law shall not be applied within the time period from 1
January 2009 until 31 December 2013.
[19 June 2008]
44. Persons to whom within the time period from 1 January 1996
until 13 March 2001 (inclusive) the granting of an unemployment
benefit was rejected due to the fact that the employer had not
made mandatory contributions (social tax) starting with 1 January
2009, a time period up to nine months in which the unemployment
benefit was not disbursed to the person and during which he or
she has not been in the status of a socially insured person shall
be included in pension insurance. In such case the object of
mandatory contributions (social tax) shall be the minimum wage in
the respective time period stipulated by the Cabinet.
[19 June 2008]
45. Section 20.1 of this Law shall come into force
on 1 January 2009.
[19 June 2008]
46. Amendments to Section 3, Paragraph one of this Law in
respect of the replacement of words "the contraction of an
occupational disease, as well as additional expenditures in
connection with the nursing of a child and" with "the contraction
of an occupational disease, nursing of a child of the socially
insured person, as well as additional expenditures in connection
with" shall come into force on 3 May 2010.
[16 June 2009]
47. [20 December 2010].
48. Persons who until 1 September 2010 have performed
mandatory contributions from the payments specified in Section
14, Paragraph 2.1 of this Law have the right to choose
not to make mandatory contributions for a time period from 1
January until 31 August 2010.
[9 August 2010]
49. The Cabinet shall assess the impact of mandatory
contributions for pension insurance actually made and specified
in Section 5, Paragraph four of this Law on the social security
of persons and by 1 October 2021 and afterwards every three years
by 1 October shall submit a report thereon to the
Saeima.
[20 December 2010; 12 March 2015;
25 October 2018]
50. From 1 January 2012 until 31 December 2014 mandatory
contributions for pension insurance intended from the State basic
budget regarding persons who are performing temporary paid social
work shall be made from the funds from European Union policy
instruments.
[15 December 2011; 20 December
2012; 13 March 2014]
51. Amendments to Section 13, Paragraph five of this Law in
relation to the right of the State Revenue Service to register
losing the status of a socially insured person for a person
(employee), as well as amendments regarding rewording of Section
20.1 of this Law and amendments to Section 23,
Paragraph 1.1 regarding updating the amount of income
for work and mandatory contributions shall come into force on 1
March 2013.
[20 December 2012]
52. Section 26.1, Paragraph three of this Law shall
come into force on 1 June 2015.
[12 March 2015]
53. The State Insurance Agency shall calculate the mandatory
contribution object of a full calendar month for the period up to
31 December 2016 according to the calculated amount of mandatory
contributions of each micro-enterprise employee (except for cases
when an employee of the micro-enterprise -paying micro-enterprise
tax starts or terminates employment at the micro-enterprise) in
proportion to the number of employees indicated each month in the
tax return of the micro-enterprise and their actual income,
applying to them the mandatory contribution rate fixed for the
respective employee who has been insured for all types of social
insurance and who has attained the age which gives him or her the
right to receive a State old-age pension or whom an old-age
pension (including before term) has been granted and for an
employee who is a recipient of a service pension or a person with
disabilities - recipient of a State special pension. The
calculated mandatory contribution object shall be rounded to the
euro and cents, dropping 0.49 cents and less and rounding 0.50
cents and more to the cent.
[30 November 2015]
54. [20 December 2016]
55. [20 December 2016]
56. [20 December 2016]
57. Section 6, Paragraph 2.3 of this Law, amendment
to Section 14, Paragraph two of this Law regarding deleting the
second sentence, amendment regarding the rewording of Section 18,
Paragraph two and Section 20.1, Paragraph six shall
come into force on 1 January 2017.
[22 September 2016]
58. Section 21.1, Paragraph 1.1 of this
Law, amendment regarding the rewording of Section
21.1, Paragraph three, and Section 27.1,
Paragraph three shall come into force on 1 January 2018.
[22 September 2016]
59. In accordance with Section 21.1, Paragraph five
of this Law the Agency shall write off the mandatory contribution
margin resulting from rounding up the contributions for the
previous period from the day the margin originated until 31
December 2015 but not more than one euro per calendar year for
one socially insured person.
[22 September 2016]
60. From 1 January 2018 the Agency shall, within three years,
inform the State Revenue Service about the overpaid contributions
of an employer and a socially insured person which have been
accrued by 31 December 2016 and the amount of which reaches or
exceeds 35 per cent of the State social insurance benefit and the
overpayment shall be refunded in accordance with the procedures
stipulated by the Cabinet.
[22 September 2016]
61. An employer who has started to reimburse his or her former
worker (employee) the costs for the restrictions on competition
by 31 December 2016 and continues to reimburse them after 1
January 2017 shall not provide information regarding acquiring
the status of the employee in the reimbursement period and in the
reports on mandatory contributions shall indicate the
reimbursement for the restriction on competition in the period in
which the respective person had the status of an employee.
[22 September 2016]
62. Section 13, Paragraphs six and seven and Section 23,
Paragraph 1.4of this Law shall come into force on 1
July 2017.
[23 November 2016]
63. By 1 May 2017 the Cabinet shall draw up draft laws on
amendments regarding the amount of a social insurance service for
socially insured persons having a low mandatory contribution
object and submit to the Saeima.
[20 December 2016]
64. The Cabinet shall draw up and submit to the Saeima
in the package of draft 2018 State budget law a draft law on
health care financing, stipulating a link between the
contributions made and receipt of health care services.
[27 July 2017]
65. Section 3, Paragraph three, Section 4, Clause 7, amendment
to Section 5, Paragraph four in relation to supplementing this
Paragraph with the words "and health insurance", amendment to
Section 5, Paragraph six in relation to supplementing this
Paragraph with a sentence, amendment to Section 6 in relation to
the new wording of Paragraphs one and two, amendment to Section
6, Paragraphs 2.1, 2.3, three, six, eight,
nine, twelve in relation to supplementing them with the words
"health insurance", Chapter III.1, amendment in
relation to the new wording of Section 18, Paragraph one and
Section 22, Paragraph one of this Law shall come into force
concurrently with the entry into force of the Health Care
Financing Law referred to in Paragraph 64 of Transitional
Provisions.
[27 July 2017; 22 November
2017]
66. A self-employed person shall submit the report on the
object of mandatory contributions from the agricultural
production income for the period by 31 December 2017 to the State
Revenue Service and shall make mandatory contributions in
accordance with the procedures and within the time periods
effective by 31 December 2017.
[22 November 2017]
67. By 1 January 2019 the Office of the Prosecutor General
shall submit to the Agency information regarding the persons
referred to in Section 6, Paragraph four, Clause 13 and Paragraph
five, Clause 9 of this Law for whom no mandatory contributions
have been made as the spouse of an Eurojust representative in
respect of the period of stay of this person in a foreign state
(but not earlier than from 1 May 2004), indicating the given
name, surname, personal identity number of the person, date of
departure to the respective foreign state as the spouse of the
Eurojust representative and also the date of return from the
respective foreign state.
[25 October 2018]
68. Amendments to Section 17, Section 20.2,
Paragraph four, Section 21, Paragraphs one, two, three,
3.1, and four, Section 22, and Section
23.1, Paragraph two of this Law in relation to
transfer of contributions into the single tax account and
amendments to Section 23, Paragraphs one, 1.5, two,
and 2.1 of this Law in relation to performance of
activities on specific dates shall come into force on 1 January
2021.
[25 October 2018 / The abovementioned amendments
shall be included in the wording of the Law as of 1 January
2021]
69. Amendments to Section 14, Paragraphs five and six of this
Law in relation to the maximum amount of the objects of mandatory
contributions and voluntary insurance contributions for a period
of three years, amendment in relation to supplementing Section
14, Paragraph twenty of this Law with a second sentence and
Sections 24.2 and 24.3 of this Law shall
come into force on 1 January 2019.
[25 October 2018]
70. By 1 March 2019 an employer has the right to update the
object of mandatory contributions and mandatory contributions of
employees - professional athletes - if within the period from 1
January 2018 by 31 December 2018 a professional athlete was on a
child care leave, he (child's father) was granted a leave in
relation to the childbirth, he or she was on a leave without
retaining work remuneration that was granted to a professional
athlete to whom a child to be cared was given under the care and
supervision according to a decision of the Orphan's and Custody
Court before approval of adoption, or for calendar days of
temporary incapacity for work, prenatal and maternity leave for
which sick-leave certificate B is issued.
[25 October 2018]
Informative
Reference to European Union Directives
[20 December
2010; 20 December 2012; 13 March 2014; 22 September 2016]
This Law contains legal norms arising from:
1) [20 December 2012];
2) Directive 2009/52/EC of the European Parliament and of the
Council of 18 June 2009 providing for minimum standards on
sanctions and measures against employers of illegally staying
third-country nationals;
3) Directive 2010/41/EU of the European Parliament and of the
Council of 7 July 2010 on the application of the principle of
equal treatment between men and women engaged in an activity in a
self-employed capacity and repealing Council Directive
86/613/EEC;
4) Directive 2011/98/EU of the European Parliament and of the
Council of 13 December 2011 on a single application procedure for
a single permit for third-country nationals to reside and work in
the territory of a Member State and on a common set of rights for
third-country workers legally residing in a Member State;
5) Directive 2014/36/EU of the European Parliament and of the
Council of 26 February 2014 on the conditions of entry and stay
of third-country nationals for the purpose of employment as
seasonal workers;
6) Directive 2014/66/EU of the European Parliament and of the
Council of 15 May 2014 on the conditions of entry and residence
of third-country nationals in the framework of an intra-corporate
transfer.
This Law shall come into force on 1 January 1998.
The Law has been adopted by the Saeima on 1 October
1997.
For the President,
Deputy Chairperson of the Saeima A. Ameriks
Rīga, 21 October 1997
1 The Parliament of the Republic of
Latvia
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Language Centre)