Pension
The social security insurance scheme in Latvia covers benefits for retirement pensions. The legal retirement age is 64 years and 3 months, increasing by 3 months every year till it reaches 65 years in 2025. The insured person must make social insurance contributions for at least 20 years to be eligible for a pension.
The monthly retirement pension is calculated based on the insured's accumulated pension capital, average salary, insurance period, and average life expectancy.
Latvia also provides a state social security old-age allowance of EUR 109 per month to residents who stay in Latvia permanently and are not eligible to receive the state pension.
Dependents/Survivors Benefits
The State Social Insurance Agency provides survivors pension to children, siblings, and grandchildren under 18 years, as a percentage of the old-age pension the deceased received or would have been entitled to receive, ranging from 50% to 90%. The minimum monthly pension is EUR 136 (euros) for children under 6 years of age and EUR 163 for children 7 or above. A deceased person's spouse is eligible for benefits if the deceased received an old-age, invalidity, or work record related pension and died after January 1, 2019. The spouse is entitled to 50% of the pension received by the deceased person.
If an insured employee dies due to a work-related accident or occupational disease, their survivors receive insurance indemnity, calculated based on the deceased person's average monthly insurance contribution salary. A funeral allowance is also paid.
Latvia also provides State social security allowance to permanent residents under 18 in case of the loss of a supporter. The benefit is paid as a minimum monthly pension of EUR 136 for children under 6 years of age and EUR 163 for children 7 or above.
Invalidity Benefits
Insured persons are entitled to a disability pension if they have not reached the retirement age and have been assessed with a disability. The pension amount depends on the type of disability and average insurance contribution salary, contribution period, and years left for retirement. The minimum amount of invalidity pension is granted if the person has not been subject to invalidity insurance for 5 years before becoming eligible for this benefit.
In case of disability caused by a work-related accident or occupational disease, employees are entitled to indemnity for loss of ability to work, depending on the type and degree of disability.
Latvia provides state social security disability allowance to disabled persons over 18 years of age who reside in Latvia permanently and are not eligible for state pensions.