An initiative between the Latvian government and Partnership of Latvian Construction Entrepreneurs aims to set the monthly minimum wage in the construction sector at €780, around double the national minimum wage. This initiative comes after a report from the State Revenue Service found that 24 percent of wages in the sector go untaxed, leading to around €60 million a year in lost tax revenue. For this initiative to come in to effect it must be supported by around half of businesses operating in the sector, or around €700 million in total turnover. Baiba Fromane, Head of the Partnership of Latvian Construction Entrepreneurs stated that currently firms with a total turnover of €600 million had joined the initiative. If the additional firms are found, the new industry regulation is expected to be introduced in early 2019.
