Scholarly record
SOCIAL INSURANCE OF SELF-EMPLOYED PERSONS IN THE BALTIC STATES - MAIN PROBLEMS AND BENEFITS
Abstract
In Latvia, as in the other Baltic States, the rate of compulsory state social insurance contributions (SSIAI) for employee insurance is divided between the employer and the employee, with merely the proportion of the distribution differing. Self-employed persons, on the other hand, pay contributions for themselves in full amount, but the types of insurance and the procedure for calculating contributions differ in all three countries. Consequently, the level of social security of the self-employed also differs. The authors define two problems in Latvia related to social insurance for self-employed persons: 1) high burden of social contributions in relation to income; 2) insufficient social security, which reduces the willingness of the self-employed person to make mandatory social insurance contributions. The authors of the paper set the following goal studying the Latvian, Lithuanian and Estonian state social insurance for the self-employed persons, and evaluating the main problems and benefits in each country. The following aspects were researched and carried out during the paper research: 1) statistics on self-employed persons in each of the Baltic States were studied; 2) the understanding of the term "self-employed person" in regulatory enactments was compared; 3) a comparative analysis of the social insurance system for the self-employed was performed; 4) the positive experience of neighbouring countries has been defined in order to assess what Latvia could take over in the field of social insurance for the self-employed persons. The study uses the monographic method, as well as scientific induction and deduction, and statistical analysis. As a result of the research, it has been established that among the Baltic States, Latvia has the highest rate of social insurance contributions, as well as the amount of contributions or the burden on the self-employed with low income.
Publication Impact Profile
Publication details
References20
Cabinet of Ministers of Latvian Republic. Procedures for the Application of a Patent Fee for the Economic Activity of a Natural Person in a Certain Profession and the Amount of the Patent Fee. Regulation, Latvia, 2018
Central Statistical Bureau of Latvia. Composition and structure of households disposable income in urban and rural areas average per household member per month. Last update 12.12.2019. Available: http://data1.csb.gov.lv/pxweb/lv/sociala/sociala__mb__ienakumi/IIG050.px/table/tableViewLayout1/
Eurofund. Greece: Self-employed workers. Report, 2009. Available: https://www.eurofound.europa.eu/nl/publications/report/2009/greece-self-employed-workers
Eurostat. Employment by sex, age and professional status (1 000) [lfsa_egaps], Last update 28.07.2020. Available: https://ec.europa.eu/eurostat/web/products-datasets/product?code=lfsa_egais
Eurostat. Employees and family workers who wish to be self-employed by main reason for not being self-employed and sex [lfso_17psobst]. Last update 24.04.2020. Available: https://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=lfso_17psobst&lang=en
Feng Z., Glinskaya E. Aiming Higher: Advancing Public Social Insurance for Long-Term Care to Meet the Global Aging Challenge/ Comment on “Financing Long-term Care: Lessons from Japan. International Journal of Health Policy and Management, 2020, vol.9, pp. 356-359
Ministry of Social security and Labour of Lithuania. Social insurance contributions. Last update: 15.07.2020. Available: https://socmin.lrv.lt/en/activities/social-insurance-1/social-insurance-contributions
Leibus, I. Tax Incentives for Micro Enterprises – Latvia’s Experience. Proceedings of the International scientific conference “Economic science for rural development”, Latvia University of Life sciences and Technologies. Faculty of Economics and Social Development, Latvia, 2019, vol. 52 p. 287-295
Riigikogu. Social Act Tax. Estonia, 2000.
Riigikogu. Unemployment Insurance Act. Estonia, 2001.
Riigikogu. Funded Pensions Act. Estonia, 2004.
Riigikogu. Commercial Code. Act, Estonia, 1995.
Riigikogu. Simplified Business Income Taxation Act. Estonia, 2018.
Schoukens, P., Barrio, A., Montebovi, S. The EU social pillar: An answer to the challenge of the social protection of platform workers? European Journal of social security, vol. 20, pp. 219-241
State Labour Inspectorate Republic of Latvia. Self-employment in Latvia and improvement of the legal framework for the improvement of working conditions for the self-employed. Final report of the research, Latvia, 2018, pp.67
The Saeima of the Republic of Latvia. On personal Income Tax. Law, Latvia, 1993
The Saeima of the Republic of Latvia. On State Social Insurance. Law, Latvia, 1998
The Saeima of the Republic of Latvia. On the Regulated Professions and the Recognition of Professional Qualifications. Law, Latvia, 2001
The Seimas of the Republic of Lithuania. Law on State Social Insurance, Lithuania, 1991.
The Seimas of the Republic of Lithuania. Law on Employment. Lithuania, 2016.
View or Download full articleAccess options
SWS access login
Login as SWS Scientific CommitteeLogin as SWS Scientific PartnerLogin as SWS AuthorAuthors and approved SWS contributors will read and export their own linked papers after identity matching by SWS profile, email and SGEM GlobalID.
For librarian assistance: [email protected]
Purchase Instant Access
- Article can be downloaded after successful payment.
- Article may be used according to SWS library access terms.
- Article cannot be redistributed.
