Translated with DeepL.com
In order to reduce the negative impact of labour shortages on economic growth in all sectors of the economy, as well as to facilitate the requirements regarding the amount of financial resources required for foreigners who receive the right to employment, the Cabinet of Ministers approved changes to the regulation on the amount of financial resources required for a foreigner and the determination of the existence of financial resources at its meeting on 30 January this year.
In a number of sectors that are important for the economy, where there are the most vacancies and the greatest labour shortages, the gross monthly salary of workers is lower than the average gross monthly salary of workers in the country in the previous year (e.g. hospitality, passenger transport, construction, security sector, etc.). Until now, the requirement that foreigners be paid the average wage in the country rather than in the sector has led to a situation where local workers, who are not covered by this requirement, are paid less than foreigners.
In future, all labour market actors will be subject to the same rules on the employment of foreigners, with the same level of financial resources per sector. Accordingly, the wage for foreign workers will be set at no less than the average gross monthly wage of workers in the Republic of Latvia in the sector in the previous year or the minimum wage set by the sectoral general agreement concluded pursuant to Article 18(4) of the Labour Law. However, if the average wage in the sector of the intended employment is higher, the amount of financial resources required by the foreigner shall not be less than the average gross monthly wage of workers in the Republic of Latvia in the preceding year.
The approved changes will ease the requirements for employers to provide the minimum amount of financial resources to a foreigner receiving a visa and the right to employment. The changes are expected to boost the competitiveness of sectors, increase production and attract investment, with a correspondingly positive impact on the business environment in Latvia as a whole.
The changes approved by the Cabinet of Ministers to the regulations on the amount of financial resources required for a foreigner are part of the overall package of changes to the regulatory framework aimed at reducing the administrative burden for businesses and simplifying the process of attracting foreign workers.
The Cabinet of Ministers has already approved amendments to the Immigration Law aimed at restricting unscrupulous employers - foreign labour inviters, as well as amendments to Cabinet Regulation No 552 "Procedure for Approval of Invitations and Execution of Invitations", which eases the requirements for all economic operators planning to employ foreign workers in professions that are not regulated in Latvia.
In the near future, the Ministry of Economics plans to promote the other draft regulatory package - amendments to the Cabinet Regulation No. 55 Regulations on the Employment of Foreigners, providing that a company will be able to attract labour from abroad if the employer has published an open vacancy in the PES, as well as to introduce "Green Corridor" criteria for honest entrepreneurs in order to reduce the administrative burden on entrepreneurs and speed up administrative processes in labour attraction issues, while at the same time enhancing Latvia's competitiveness in the field of investment attraction by providing for clear and simple processes for attracting foreign labour.