The Latvian Construction Industry Trade Union wants to increase the sector’s minimum wage by 10% – up to 1155.64 euros per month. The minimum wage set by law in the country is 740 euros per month.
The trade union reminds that at present the minimum wage in the construction sector is determined by a general agreement, which has been in force since 2019. Currently, the general agreement provides for a minimum monthly wage of 1050 euros and an hourly rate of 6.29 euros. The Latvian Construction Industry Trade Union proposes amending the general agreement so that in 2026 the minimum hourly rate for everyone employed in construction would be 6.92 euros and the minimum monthly salary 1155.64 euros.
The amendments proposed by the trade union provide for abandoning the reduced minimum wage for students, establishing a minimum wage indexation mechanism directly in the text of the general agreement, and clarifying the procedure for overtime pay.
LBNA justifies the need for amendments by the fact that over six years the minimum hourly rate in the general agreement has been devalued, compared both to the national minimum hourly rate (a 70% drop), to the sector’s average hourly rate (a 14% drop), and to purchasing power parity (an 11% drop).
It is also recalled that the construction sector has the highest share of the shadow economy (33.8%), and half of this consists of envelope wages. The sector’s minimum wage has a direct impact on the size of the shadow economy in the sector, because every euro that must be paid as minimum wage is not put into an envelope.
Furthermore, construction sites in Latvia have the lowest minimum hourly rate in the region, and at construction sites in other countries it is possible to earn up to 4 times more. In Lithuania and Estonia, the minimum wage for any job in the economy is higher than on construction sites in Latvia.
A survey carried out by the trade union shows that only 1 in 10 new construction professionals plans to stay on construction sites in Latvia. At the same time, the sector is operating with a profit of 281 million, and the latest data indicate the second-best profit in 10 years.
The trade union believes that this proposal ensures a proportionate increase in the minimum wage, calculated on the basis of the sector’s own data, thereby reducing envelope wages and retaining and attracting qualified labour.
Originally published at https://inc-baltics.com/celtnieki-velas-lielaku-minimalo-algu-1155-eiro/
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