During the transition period until December 31, 2025, a construction worker whose profession corresponds to the 9th basic group of professions can be paid less, but not less than 930 euros per month and 5.57 euros per hour, or 830 euros per month and 4.97 euros per hour, if his length of service with the given employer in the last 12 months is less than six months.
When paying the reduced minimum wage, the overtime bonus must be paid in the amount of 100%.
LBNA points out that this is a small progress among the social partners of the industry. At the same time, the fact that the committee has not regularly raised the minimum wage for all categories of employees in the sector has devalued its real influence in the sector, as both the average wage of the sector and the national minimum wage have grown faster in the last five years, say LBNA representatives.
The union points out that the minimum wage also has a direct impact on the extent of the shadow economy in the industry, as every euro that must be paid as minimum wage is not put in an envelope. Taking into account the small progress in raising the minimum wage, LBNA believes that the plan to combat the shadow economy should be strengthened, in addition to the minimum wage of the general agreement, also determining the tax bill, joint and several liability in the entire chain of subcontractors, reporting on the mandatory state social insurance contributions to the construction site, reporting on the monthly average salary in the basic groups of professions .
In LBNA’s opinion, the minimum wage of the general agreement should be raised in the future with an automatic system that would ensure the compliance of the minimum wage with the real situation of the industry.
This year, the minimum wage for construction workers is 930 euros per month or 5.57 euros per hour.
A collective agreement is an industry collective agreement between an employer organization and an employee union. It is an agreement between the two parties on the minimum terms for the entire industry. The general agreement is binding on all employers – natural or legal persons or legal partnerships that employ at least one employee on the basis of an employment contract who conducts economic activity in the construction sector on the territory of Latvia, regardless of whether the employer has or has not registered the type of activity.
The general agreement of the construction industry has been concluded between the Latvian Construction Industry Trade Union and three employers’ organizations and its members – Latvian Construction Contractors Partnership, Latvian Builders Association, Latvian Road Builder, as well as individual companies. It is valid from November 3, 2019.
2024-09-26 18:16:25