Home » Legal developments » National legislation » Latvia: employers will have to justify to the tax authorities why they pay low wages to their employees Latvia: employers will have to justify to the tax authorities why they pay low wages to their employees Through . Published on 15 July 2020 à 12h45 - Update on 15 July 2020 à 12h45 Resources In a bid to do more to tackle the practice of paying parts of salaries in the form of undeclared (non tax compliant) cash, the State Revenue Service (VID) will be submitting amendments to the Law on State Social Insurance in the forthcoming Finance Law that will see a shift in the burden of proof over to employers and will require them to justify the reason why the declared salary levels are low. The head of the VID made the announcement on 13 July and the amendments are to target companies paying significantly lower wages than the relevant sector average level as per VID statistics. Recourse to compensation amounts as part of reduced activity measures (such as short-time working) has revealed a number of problems arising from the informal economy, such as employees receiving very low compensation payments because of the fact that they were receiving part of their salary ‘in an undeclared envelope.’ Need more info ? Contact mind's on-demand study service Which service do you want to contact :WritingCommercial serviceTechnical SupportFirst name Last name Organization Function email* Object of the message Your messageCommentsThis field is for validation purposes and should be left unchanged. Essentials Les dernières publications Supporting parenthood in the workplace: a win-win strategy Supporting employee carers: a CSR challenge Analyzes Les dernières publications Paternity leave: data observations from 41 countries EU: during H1 2022 five EU Member States have raised their minimum salary levels