Changes to the services provided by the SSIA in 2021

As of 1 January 2021, period for the sickness benefit for care of a sick child, who has been injured in relation to bone fracture and has not attained the age of 14 years, will be prolonged – up to the 30rd day of incapacity for work.

As of 1 January 2021, funeral benefit in raised amount of 327 euro will be available:

• In case of death of the insured person’s family member, who was supported by the insured person,

• In case of death of the receiver of unemployment benefit.

These changes are related to the increase in the amount of the state social security benefit from 64.03 euro to 109 euro, thus, the funeral benefit granted in the amount of tripled state social security benefit raises (3 x 109=327).

As of 1 January 2021, conditions are changed in relation to granting of state family allowance for families for a disabled child.

If a child has been diagnosed with disability, the state family allowance for families for this child is available:

• From the date of diagnosing with disability, if it has been diagnosed before the child has attained the age of one year,

• After attaining the age of 15 years, but not longer than up to the day, when the child has attained the age of 20 years regardless of the child’s status as a student.

Benefit according to these conditions will be granted by the SSIA for the period from 1 January 2021, but the amount due for the period from 1 January to 31 March 2021 will be disbursed until 1 April 2021.

As of 2021, childbirth allowance shall be granted before the eighth day of the child’s life, as it was so far.

Please be noted that the allowance must be claimed for within six months from the day of the child’s birth.

As of 1 January 2021, amount of the state social security benefit is raised as follows:

• In case of old age – 109.00 euro,

• In case of loss of provider for a child up to the moment of attaining seven years of age – 136.00 euro, for a child from the age of seven – 163.00 euro.

Amount of the state social security benefit for persons with Group I and Group II disability will depend on their employment. This benefit for unemployed receivers will be higher due to supplement. Raised amounts:

From 1 January to 30 April 2021, security benefit will be disbursed in the previous amount according to the regulatory framework effective until 31 December 2020. Whereas, for the period from 1 January 2021 to 30 April 2021 (for January, February, March and April), the SSIA will recalculate the security benefit and disburse the difference in May. If difference for the first months of the year will be lower than the new amount of benefit after the increase thereof, the person will be disbursed in May also a one-off supplement to equal the new amount of the benefit.

At the same time, in May, procedure of the security benefit will change to payments for the previous month (at the moment, payments are made for the current month).

As of June, security benefit will be disbursed for the previous month in the new amount. This means that only the difference for the first four months will be disbursed in May, as well as supplement, if the difference will be lower than the new amount of the benefit. Security benefit for May will be disbursed in June; for June – in July and so on.

When disbursing benefit for the previous month, supplement to the basic amount is granted for days, when the receiver of the benefit is not employed.

Example. A person of group III disability is unemployed and receives 156.96 euro (130.80+26.16) per month. Legal labour relations have been commenced as of 25 July 2021. In August, when benefit for July is disbursed, supplement is paid for the period from 1 July to 24 July, when the person was unemployed, i.e., 20.25 euro (26.16:31×24).

If the person keeps working in August, then benefit for August will be paid in September in the amount of 130.80, but without supplement.

As of 1 January 2021, amount of the state social benefit for recovery worker of Chernobyl nuclear accident and family of the deceased recovery worker raises to 109.00 euro.

For the period from 1 January 2021 to 30 April 2021, benefits will be disbursed in the previous amount, as it was until 31 December 2020 (100 euro per month). After the recalculation of the benefit, the difference of the benefit for January, February, March and April will be disbursed together with the benefit due for May 2021.

As of 1 January 2021, minimum amount of the compensation for loss of a provider is raised reaching the following amounts for each child:

• From the moment of birth to the moment of attaining seven years of age – 136 euro

• From the age of seven years – 163 euro.

For the period from 1 January 2021 to 30 April 2021, the compensation will be disbursed by the SSIA in the previous amount as it was until 31 December 2020, but the difference of the compensation for January, February, March and April will be disbursed together with the compensation due for May 2021.

As of 1 January 2021, minimum amounts of the compensation for the loss of capacity for work are raised:

For the period from 1 January 2021 to 30 April 2021, the compensation will be disbursed by the SSIA in the previous amount as it was until 31 December 2020, but the difference of the compensation for January, February, March and April will be disbursed together with the compensation due for May 2021.

As of 1 January 2021 – new procedure for calculation of the average monthly wage subject to contributions, when determining amount of compensation for the loss of capacity for work and loss of a provider:

• To be calculated on the basis of any uninterrupted 36-month period, which is most beneficial for the person, within the last five years before the day of accident at work or establishment of occupational disease.

• The full months, when wage subject to insurance contributions are not registered due to received downtime benefit, downtime assistance benefit, continuation of parental allowance, sickness assistance benefit and downtime support, will be excluded from the calculation of the average wage.

As of 1 January 2021, amount of the unemployment benefit is raised for the unemployed persons, who have been determined such a benefit in the amount of 60% of double amount of the state social security benefit:

• For the persons, for which social insurance contributions for employment have been made from the state’s general budget (receivers of childcare benefits up to the child’s age of 1.5 years);

• For the persons, who have taken care of a disabled child up to 18 years of age;

• For the persons, who have recovered capacity for work after the determined disability.

These changes are related to the increase in the amount of the state social security benefit from 64.03 euro to 109 euro.

If the unemployment benefit has been granted until 31 December 2020, but the period of unemployment, for which the unemployment benefit is to be disbursed, continues uninterruptedly also after 1 January 2021, the unemployment benefits to be disbursed will be recalculated as of 1 January paying the difference by 31 May 2021.

Conditions for granting and disbursement of unemployment benefit:

• Period of temporary employment has been prolonged to 120 days. Disbursement of unemployment benefit is suspended until 31 December 2021, if the unemployed person obtains status of an employee or self-employed person for the period up to 120 days

• Prolonged term, during which unemployment benefit is granted from the day of submission of application for a benefit. The unemployed persons, who will have obtained unemployed person’s status during the period from 12 March 2020 to 30 June 2021 and who have terminated legal labour relations on the basis of their own notices, the unemployment benefit will be granted as of the day of submission of application for a benefit.

Information on changes related to the mandatory state social insurance contributions in 2021 has been summarised on the website of the State Revenue Service: https://www.vid.gov.lv/sites/default/files/info_groz_lik_par_vsa.pdf  

In 2021, retirement age will be 64 years, but in case of early retirement – 62 years.

The amount of the minimum old-age pension has been raised and depends on the period of a person’s insurance:

• If the period of person’s insurance in Latvia is at least 15 years, amount of the minimum old age pension may not be lower than 60 euro; for persons with disability from childhood – 179.30 euro;

• If the period of person’s insurance in Latvia is at least 16 years, amount of the minimum old age pension is determined by raising it by 72 euro for each year of insurance; for persons with disability from childhood – by 3.26 euro for each year of insurance.

For the period from 1 January 2021 to 30 April 2021, minimum old age pensions will be disbursed by the SSIA in the amount, as it was determined until 31 December 2020. Not later than by May 2021, the SSIA will review the minimum pensions and disburse the difference for the period from 1 January to 30 April together with the pension due for May 2021.

A minimum amount of pension not subject to personal income tax (PIT) will be 330 euro per month in 2021. PIT rate will retain 20% for pensions in the amount up to 1,667 euro per month and 23% for the share above 1,667 euro.

A minimum amount of disability pension has been raised:

For the period from 1 January 2021 to 30 April 2021, minimum disability pensions will be disbursed by the SSIA in the amount, as it was determined until 31 December 2020. Not later than by May 2021, the SSIA will review the minimum pensions and disburse the difference for the period from 1 January to 30 April together with the pension due for May 2021.

The amount of the minimum pension for the loss of a supporter has been raised for each child:

• From the moment of birth to the moment of attaining seven years of age – 136 euro;

• From the age of seven years – 163 euro.

Pensions for the loss of a supporter granted from 1 January 2021 will be disbursed by the SSIA for the previous month. Whereas, pensions which have been granted until 31 December 2020 and whose disbursement continues uninterruptedly after 1 January 2021, will be disbursed by the SSIA for the current month.

For the period from 1 January 2021 to 30 April 2021, minimum pensions for the loss of a  supporter will be disbursed by the SSIA in the amount, as it was determined until 31 December 2020. Not later than by May 2021, the SSIA will review the minimum pensions and disburse the difference for the period from 1 January to 30 April together with the pension due for May 2021.