Background information

Following a surge in COVID-19 infections to record levels, on 9 October 2021 the Latvian Government declared the state of emergency for three months, in force from 11 October 2022. Later, on 21 October, the Government introduced a four-week period of even more strict restrictions in order to significantly slow down the spread of COVID-19 infection.

The wage subsidy for self-employed is based on a previously developed support measure for entrepreneurs Wage subsidy for short time employees ).

On 10 November 2021, the government amended the regulations No. 675 "On the provision of support to taxpayers to continue their activities in the context of the COVID-19 crisis". The amendments were agreed with the European Commission and entered into force on 18 December 2021.

On 6 January 2022 the state of emergency was extended till 28 February 2022.

Content of measure

Self-employed persons, recipients of royalties, owners of micro-enterprises and sole proprietors who experience a decrease in income during the State of emergency, may apply for a wage subsidy to compensate for the loss of income.

Self-employed people are eligible for the wage subsidy if their income from the economic activity in the month for which it is requested (in October, November, December 2021, or January 2022) has decreased due to restrictions:

• at least by 20% compared to the average income in July, August and September 2021;
• at least by 30% compared to the income for the respective month (October, November, December or January) of 2019.

Only people who have been vaccinated against COVID-19, or recovered from it, or are authorized by the medical council on the authorization not to vaccinate can receive the subsidy.

Only people operating in certain sectors can apply for the subsidy. For October 2021 and November 2021 the list of non eligible sectors was determined (containing 17 sectors, including agriculture, manufacturing, construction and others). Since restrictions were reduced in December 2021 and January 2022, a more precise list of eligible sectors was determined. The list includes bars, cultural activities, artists' activities, artistic and literary creation and interpretation activities, gambling and betting, and amusement and recreation activities.

The amount of the subsidy for a self-employed person, for a recipient of royalties, and for a sole proprietor is 50% of the average monthly income from economic activity or royalties for the period from 1 July to 30 September 2021 or from the declared average monthly income from economic activity or royalties after 1 July 2021, in which the self-employed person has actually performed economic activity, but not more than €700 per calendar month.

For a self-employed person who is a micro-enterprise taxpayer the amount of the subsidy is 50% of the average monthly turnover of a micro-enterprise for the 3rd quarter of 2021, but not more than €700 per calendar month.

The total amount of support for the wage subsidy, which consists of the support granted to the employee by all employers or in various forms of employment, may not exceed €700 per calendar month. In the case of a sole proprietor, both employees can apply for support and the self-employed person can apply for support for a wage subsidy as a self-employed person.

Use of measure

Not available.

Target groups

Workers	Businesses	Citizens
Self-employed	Does not apply to businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Any other form of consultation, institutionalised (as stable working groups or committees) or informal	Any other form of consultation, institutionalised (as stable working groups or committees) or informal

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Unknown

Involvement

Peak level social partners’ organisations are normally informed of Government decisions. Regarding COVID-19 measures, social partners participate in working groups and depending on their capacities are involved in consultations and negotiations.

Views and reactions

No specific views to report.

Sectors and occupations

This case is not occupation-specific.

Sources

• 08 October 2021: From 11 October, an emergency situation is declared in Latvia for three months (www.mk.gov.lv)
• 21 October 2021: During four-weeks period, Latvia will put in the maximum efforts to control the Covid-19 pandemic (www.mk.gov.lv)
• 10 January 2022: State Revenue service website (accessed on 10 January 2022) (www.vid.gov.lv)
• 10 January 2022: Regulation 806: amendments to the regulation No. 675 "On the provision of support to taxpayers to continue their activities in the context of the COVID-19 crisis" (likumi.lv)