Latvian lawmakers have taken a significant step toward reducing overtime pay, a move that could impact thousands of workers across the country. Proposed amendments to the Labor Law would substantially decrease the premium for overtime work, currently set at 100 percent, according to reports from 360TV Ziņas.
Under the proposed changes, overtime worked during weekdays would be compensated at half the current rate, while overtime on public holidays would receive a 75 percent premium. The potential changes approach as Latvia grapples with economic pressures and debates over labor costs.
The Saeima Social and Labor Affairs Commission’s recent session was marked by confusion when it became apparent that some lawmakers were unclear about the specifics of their vote. Kaspars Rācenājs, a lawyer for the Latvian Free Trade Union Association, pointed out a potential paradox in the current decision: overtime work on a public holiday would be compensated with a 75 percent premium, while regular work on a public holiday – not classified as overtime – would not receive any additional pay. The legal issue has been sent to the Saeima Legal Bureau for review, and the commission will revisit the matter next week.
Commission Chairman Andris Bērziņš acknowledged the complexity of the procedure and emphasized the importance of ensuring legal accuracy. Trade unions have strongly objected to the proposed changes, arguing they would significantly harm workers’ incomes and the quality of public services. Inga Vējiņa, head of the Transport Workers’ Trade Union, warned that bus drivers, for whom overtime constitutes a substantial portion of their earnings, might leave the industry for jobs as truck drivers.
Concerns are similarly rising within the healthcare sector. Līga Bāriņa, chairwoman of the Latvian Health and Social Care Workers’ Trade Union, noted that more than two thousand employees at the Emergency Medical Service worked overtime last year. She questioned how assistance could be provided in the future if staff refuse to work additional hours for reduced pay. Ivo Klotiņš, a representative of pediatric surgeons, argued that this was not the right way to stimulate the economy, as the public sector differs significantly from private business.
Employers, however, hold opposing views, claiming the current system is dysfunctional. Andris Bite, president of the Latvian Employers’ Confederation, stressed that a 100 percent premium is unsustainable for the private sector and makes Latvian businesses uncompetitive. He pointed to practices in neighboring countries, noting that Latvia, along with Russia and Belarus, is among the last countries in Europe to maintain such high mandatory overtime premiums. Bite believes the law should be adapted to real-life conditions, rather than forcing businesses to locate loopholes.
The commission will continue reviewing the amendments for at least two weeks, making it hard to predict the final form of the bill when it reaches the Saeima plenary session. If passed in its current direction, trade unions have not ruled out appealing to the President and the Constitutional Court.
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