For Growth on the Earth

Latvian government support measures for entrepreneurs and employees

On Thursday, March 19, the Cabinet of Ministers (CoM) ratified a special fixed-term draft law prepared by the Ministry of Finance on the measures for preventing and overcoming the national threat and the consequences thereof related to the spread of COVID-19. The purpose of the draft law is to set measures for preventing and overcoming the national threat and the consequences thereof, special support mechanisms, as well as crisis expenditure directly related to financing the containment of the spread of COVID-19. The regulation will take effect as of March 12, when the state of emergency has been declared in Latvia.

The Minister for Finance, Jānis Reirs, emphasises: “We have provided for particular measures for mitigating the consequences of crisis, in order to immediately and specifically support the enterprises and sectors most affected by the crisis and to provide support to all enterprises and their employees. The situation is developing and changing at a fast pace. Such circumstances do not allow for any procrastination; therefore we have provided for the possibility of urgently reacting and immediately supplementing the support possibilities, whenever necessary”.

More information here.

Along with the new law, Cabinet Regulation Nr.165 “Regulations Regarding the Employers Affected by the Crisis Caused by COVID-19 which are Eligible for the Allowance for Idle Time and Division of the Payment for Late Tax Payments in Instalments or Deferral Thereof for up to Three Years” was adopted on March 26 and entered into force on March 28.  

Within the meaning of this Regulation, allowance for idle time is an allowance which is disbursed if an employer which is affected by the crisis does not provide work to an employee or does not take the actions necessary for the acceptance of the fulfilment of employee’s obligations in the period of idle time due to the spread of COVID-19. The period of idle time is a limited time period lasting from 14 March 2020 until 14 May 2020, but for not longer than the validity period of the Cabinet decision on the emergency situation.

On Tuesday, March 31, the Cabinet of Ministers decided to extend the regulations – allowance for idle time will also be available to self-employed persons, recipients of royalties and those working in the micro-enterprise tax regime, whose economic activities have been affected by the crisis.

For current information please check official websites of ministries.

Information source: Ministry of Finance, Ministry of Economics

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