Granting and disbursement of Parental benefit

Parental benefit may be granted to a socially insured person who takes care of a child or multiple children born in a single birth, provided that on the date of granting the benefit the person is an employee or a self-employed person.

The parental benefit consists of:

• the basic part of the parental benefit, which may be received by one of the parents;
• the non-transferable part of the parental benefit, which each parent is individually entitled to receive. The non-transferable part amounts to two calendar months per parent and may be used until the child reaches the age of eight. Each parent has their own non-transferable part, which may not be transferred or used by the other parent.

Non-Transferable Part of the Parental Benefit – Entitlement, Claim Procedure, and Disbursement 

A person shall have the right to receive parental benefit if mandatory social insurance contributions for parental insurance have been made or had to be made:

• for at least three months during the last six-month period before the month in which the insurance event occurred (the date from which the parental benefit is granted); or
• for at least six months during the last 24 months before the month in which the insurance event occurred.
   

A woman who is not employed on the date the benefit is granted may receive the basic part of the parental benefit, provided that she has been granted maternity benefit in respect of the same child:

• as a woman who lost her status as an employee or self-employed person not earlier than 60 days before the start of maternity leave;
• as a woman who lost her status as an employee due to the liquidation of the undertaking within 210 days before the start of maternity leave;
• or lost the status of an employee or self-employed person during maternity or childbirth leave (i.e., while receiving maternity benefit).
   

The non-transferable portion of the parental benefit may not be granted to a woman who is not employed and therefore is not on parental leave or is not a self-employed person.
 

If the woman has established entitlement and was granted maternity benefit for the respective child, she is also entitled to parental benefit for that child, even if mandatory contributions were made for a shorter period than normally required. If the non-transferable part of the parental benefit is requested immediately following the receipt of the basic part, it may still be granted, but only if the recipient is on parental leave. That is, the person must have an employment relationship and have been granted leave.

Note!

The parental benefit shall not be granted for a child in respect of whom maternity benefit has been granted for the same period. It is not allowed to receive both maternity benefit and the basic part of parental benefit simultaneously. However, the father may receive the non-transferable part of the parental benefit while the mother is receiving maternity benefit.
 

Translation prepared with a machine translation tool

When determining the amount of the basic part and the non-transferable part of the parental benefit, the following factors are taken into account:

• the total period selected for receiving the parental benefit;
• the average insurance contribution wage calculated for the applicant.

For each child, the parent(s) must choose one of the following parental benefit periods:

Option 1: 19-Month Benefit Period

A total of 19 months from the child’s date of birth, which includes:

• 15 months as the basic part, to be used by one of the parents until the child reaches the age of 1.5 years.This period includes any time during which maternity benefit has been paid in relation to the same child;
• 2 months as the mother’s non-transferable part, which can be used until the child reaches 8 years of age;
• 2 months as the father’s non-transferable part, also to be used before the child turns 8.

If this option is chosen, the parental benefit is paid at 43.75% of the parent’s average insurance contribution wage.

Option 2: 13-Month Benefit Period

A total of 13 months from the child’s date of birth, which includes:

• 9 months as the basic part, to be used by one of the parents until the child turns 1 year.This period also includes any time for which maternity benefit is paid for the same child;
• 2 months as the mother’s non-transferable part (usable until the child is 8);
• 2 months as the father’s non-transferable part (also usable until the child is 8).

If this option is chosen, the parental benefit is paid at 60% of the parent’s average insurance contribution wage.

Important Notes:

• In order to receive the non-transferable part of the parental benefit, the parents must first choose the total benefit period, as this determines the applicable percentage for the benefit calculation.
• Since the non-transferable part is a component of the overall parental benefit, selecting the total duration also determines the amount for both:
  • the basic part, and
  • the non-transferable part.
• The chosen parental benefit period may not be changed, except in cases where the child, for whom the benefit has been granted, is placed in out-of-family care (e.g. guardianship, foster care, or adoption).In such a case, the new caregiver (guardian, foster parent, or adopter) has the right to change the previously selected duration of parental benefit payments.

Extension of the Parental Benefit Disbursement Period in Case of Premature Birth

If a child is born prematurely before the start date of the pregnancy leave, and a doctor has not yet issued a B sick leave certificate related to the pregnancy, the disbursement period of the basic part of the parental benefit shall be extended by the duration of the pregnancy leave period.

For self-employed persons, the average daily insurance contribution wage is calculated based on the actual contributions made during the 12-month period ending one quarter (three months) before the quarter in which the parental benefit is granted.

The average daily insurance contribution wage is calculated using the following formula:

Vd = (A₁ + A₂ + … + A₁₂) ÷ D

Where:

• Vd – average daily insurance contribution wage;
• A₁, A₂, … A₁₂ – monthly insurance contribution wages;
• D – number of calendar days in the calculation period.

If, during part of the 12-month period used for the calculation, the person has:

• been on parental leave;
• been on unpaid leave granted due to the need to care for a child;
• taken paternity leave;
• been on pregnancy or maternity leave;
• experienced temporary incapacity for work;
• received a downtime benefit, downtime support allowance, or continued parental benefit;

→ then the days falling within these periods are excluded from the total number of calendar days (D) used in the calculation.

If a person has had no income during the entire 12-month calculation period due to the previously mentioned reasons (e.g., childcare leave, maternity leave, temporary incapacity), the average wage shall be calculated based on the 12 calendar months immediately preceding those periods—i.e., from income earned prior to the leave or incapacity, while employed or self-employed.

If, during the 12-month period, there are one or more months with no income because the person was neither employed nor self-employed, or was on unpaid leave, then the average wage for that period shall be determined as 40% of the national average insurance contribution wage.

The following shall not be included in the contribution wage amount used for parental benefit calculation:

• bonuses, premiums, allowances, or other types of remuneration paid by the employer during:
  • temporary incapacity,
  • maternity or paternity leave,
  • parental leave, or
  • unpaid leave granted due to the need to care for a child;
• severance payments and compensation for unused annual leave are also excluded from the average wage calculation.

If a woman, while caring for a child under the age of three, gives birth to another child, then the parental benefit granted for the new child may not be lower than the benefit received for the previous child.

Translation prepared with a machine translation tool

The basic part of the parental benefit shall be disbursed:

• in full (100%) of the granted amount if the recipient is on leave related to childcare (e.g., parental leave), or
• at 50% of the granted amount if the recipient is working or earning income as a self-employed person.

For the period from 1 January 2025 to 31 December 2025, recipients of the parental benefit who are employed and not on childcare leave, or who earn income as self-employed persons during the childcare period, shall receive the benefit at 75% of

the granted amount.

This rule applies to:

• parents whose benefit was granted in 2023 or 2024, and who continue to receive payments in 2025, as well as
• parents to whom the benefit will be granted in 2025.

Attention!

If the parental benefit has been granted, it can be received in the granted amount only if no income is earned during the period of receiving the benefit, including royalties.

The only exception is if a self-employed person has registered their economic activity with the State Revenue Service, their monthly income does not reach the minimum wage, and the self-employed person makes state social insurance contributions under the general regime.

The non-transferable portion can only be received while on leave related to childcare, and thus the non-transferable portion is disbursed in the granted amount, depending on the chosen period for the disbursement of the parental benefit.

The benefit is disbursed for the previous month, proportional to the number of calendar days for which the benefit is due.

The benefit is transferred to the benefit recipient’s account in a credit institution of the Republic of Latvia or the postal settlement system (PSS).

If the benefit is granted in accordance with an intergovernmental agreement concluded by Latvia in the field of social security or the conditions of the Regulation, and the benefit recipient resides in an EU/EEA Member State or a contracting state, the benefit may be transferred to an account in a credit institution of the respective foreign state.
 

The disbursement of the parental benefit is temporarily suspended while receiving an unemployment benefit.
 

The parental benefit and the childcare allowance for the care of the same child are granted and disbursed to one parent (one person).

Translation prepared with a machine translation tool