On 1 October, pensions and benefits or their parts that do not exceed EUR 382 will be increased, says Latvia’s Welfare Ministry.
This means all pensions and benefits that are not larger than EUR 382 will be indexed. Pensions and benefits larger than EUR 382 will be indexed only for part of the paid amount – EUR 382. The increase will depend on the pension and benefit amount, as well as the applied index. Exceptions include politically repressed persons, Group 1 invalids and participants of Chernobyl disaster cleanup operation. Their pensions will be indexed for the full amount, the ministry explains.
Welfare Ministry notes that the index to be applied for retirement, invalidity, survivors’ pensions and insurance indemnities will be 1.0590.
«One novelty is that with 2018 onward, retirement pension indexation will be using different indexes that will depend on a person’s work history. The larger the work history, the larger the index will be applied and the larger pension increase people can expect,» the ministry explains.
Welfare Ministry explains that if a person’s insurance history is under 29 years, retirement pension review will be applied with an index of 1.0590, if the insurance history is 30 to 39 years, the index will be 1.0655, and if insurance history is 40 years or more, the index will be 1.0720. Pensions paid for work in hazardous and especially hazardous environments and insurance history of under 39 years, the index will be 1.0655 (1.0720 for insurance history of 40 years or more).
Indexation will also be performed for pensions without taking into account allocated bonuses (for insurance history before 31 December 1995). For example, if retirement pension amount is EUR 300 and its bonus is EUR 15, only the pension amount will be indexed, the ministry explains.
It should be said that PIT may be withheld from indexed pension amount, which may reduce the paid amount. Indexation will be applied to retirement, disability and survivor pensions paid before 30 September 2018.