Laws and regulations governing:
a) employment and working conditions
Labor Law (employment and working conditions)

b) Social welfare (health insurance, occupational accidents, disability, unemployment, pensions):
- Laws on State Funded Pensions; on Private Pension Found; on Compulsory Social Insurance against Unemployment; on Employment; Insurance Law.
- Law on "Long-service pensions for performing artists employed by state and local government professional orchestras, choirs, concert organisations, circuses and theatres" (2004).

There is not a special law for artists and cultural workers.

WORKING CONDITIONS

Professional status
There is neither a work permit nor a “professional” status for artists.

Health care system
The basic model of health care in Latvia is as following. All territory of Latvia is divided into 7 regions with one Sickness Fund. Every inhabitant has to choose family one doctor – internist. Every internist is working under some Sickness Fund. At the beginning of the year, the State distributes between Sickness Funds quotas in correspondence with the number of population in every sickness fund. Further quotas are distributed between family doctors.
There is also a health insurance market increasing from year to year. Health insurance companies have agreements with medical institutions. Insured people can receive free medical care only in these special medical institutions or they can pay themselves for services if they have agreed with family doctors, and then receive money back from insurance company.

There is no special health care system for artists.

Social insurance system against work injuries and occupational diseases is linked to the working conditions.

Social welfare
Artists, like all other workers, may receive social support only if they have paid social insurance tax.

Pension insurance
In 1995, a three pillar pension system was implemented:
-1st tier: the state compulsory non-funded pension (a system with the objective to provide the max compliance of the social security benefits granted with the social insurance contribution paid.)
-2nd tier: the state compulsory funded pension (accumulation and investment principle of individual social insurance contribution), the law “On State Funded Pensions” (2001). In contrast to the first tier where national capital is accumulated, actual capital is accumulated in the second tier. 
- 3rd tier: the private voluntary pension scheme (accumulation of private saving in private funds), the law “On Private Pension Funds”, 1998. The amount of the pension is based on life earning. Since 2002, pensions less than 90LVL (152 EUR) have been indexed by the consumer price index and wage index. Pensions from 91 to 150 LVL are indexed only by the consumer price index. The guaranteed minimum of pension amount is set according to the length of the working period.

Unemployment insurance
In 1996, the system was reformed on social insurance principles and the Law “On Compulsory Social Insurance against Unemployment” came into force. This law provides that unemployment benefit is paid depending on the previously earned wage. If social insurance payment has been made for at least 9 months during the 12 months before getting the status of unemployed, the benefit is paid proportionally to the insurance history: 50% to 65% of the average earning of the last six months decreasing gradually after three months. Unemployment benefits have a maximum entitlement of 9 months.
The “Law on Employment” (1991) provides for the responsibilities of local governments and for the obligations of employers in promoting employment. The law sets the conditions for obtaining the unemployed status, defines the rights and obligations of the unemployed, and formulates active and passive unemployment measures. Unemployed persons receive: study grants and reimbursement of travel and living expenses during the period of their involvement in training courses; at least the minimum wage during their engagement in paid temporary community jobs; have incentives to accept short-term labour contracts and keep the right to receive the unemployment benefit if the contract is not prolonged.
Only in a very few occasions, artists who have lost salaried work can have the status of unemployment, but not free-lance artists.

Social insurance against work injuries and occupational diseases
This is a new branch of the social insurance being introduced since 1997. In order to provide a decent social protection in case of the insolvency of employers, the decision was made to create the Guaranties fund, starting to operate from 2003. The fund will be financed from employers’ payments.
Starting from 2003, the State Social Insurance Agency has been taking over the employers’ liabilities if the employer who should pay the compensation does not exist anymore. Theses costs are financed from the social insurance budget.

Sickness and maternity insurance
Since 1997, when the new system was introduced, employers have been obliged to pay sickness money for the first two weeks. Social insurance offices are responsible for paying sickness benefits starting only from the fifteenth day of sickness and maternity benefits starting from the first day of incapacity for work. The amount of the benefit is 80% from the average contribution wage for the last six months.

Compulsory social insurance
The employees and self-employed persons are subject to compulsory social insurance as provided by the law “On State Social Insurance”.

1) The basis of compulsory contributions for employees is all income earned from which personal income tax is to be deducted, without deduction of the non-taxable minimum, tax exemptions and justified expenses for which the tax payer is entitled to reduce the taxable income.
The employer calculates the compulsory contribution amount payable for each employee. The employer makes the contributions on behalf of the employee on a monthly basis. In 2003 the maximum amount of income from which social insurance contributions were paid was 18 400 LVL.

2) Contrary to employees, self-employed persons are only considered as socially insured if their contributions have actually been made.
Self-employed persons are insured if their income exceeds the minimum amount of the base for compulsory contributions defined by the Cabinet of Ministers. The contribution base must be declared by self-employed workers. The Cabinet of Ministers set the minimum and maximum amounts of the contribution basis. The minimum amount of earnings subject to contributions is 540 LVL per year and the maximum amount cannot exceed 18 400 LVL (in 2003). The payment of contributions must be made once per 3 months.

Artists are not obliged to resort to complementary insurance schemes.

Administration bodies
Since 1998, the State Social Insurance Agency with 33 branch offices through whole Latvia administers contributions and the payments of benefits.
All contributions and benefits’ payment are administered by the State. The State Revenue Service is responsible for collecting social insurance contributions. The State Social Insurance Agency and its local offices administer social insurance services.

REMUNERATION

According to the Cabinet of Minister’s Regulations, the nationally set minimum level of monthly income is Ls 70 or 108 EUR per person/ per month.
Wages are paid directly by employers.
There is no special system, on the bases on contract.

UNEMPLOYMENT

Artists like all other workers may receive unemployment insurance only if they have paid social insurance tax.
The State Social Insurance Agency administers the unemployment insurance scheme.


Source : Latvian National Commission for UNESCO, November 2003.


Standard-setting instruments:

• Cabinet of Ministers Regulations n° 205-2002 on procedure for awarding permission for employing or engaging child performers in cultural, artistic, sports and advertising activities
  

Useful links:

• Ministry of Culture