Open AccessCOMPARATIVE STUDY OF NET SALARY UNDER LATVIAN AND LITHUANIAN TAX LEGISLATION
Author(s) -
Sņežana Lukša
Publication year - 2019
Publication title -
indivīds. sabiedrība. valsts
Language(s) - English
Resource type - Journals
ISSN - 2592-8457
DOI - 10.17770/iss2019.5263
Subject(s) - salary , remuneration , labour economics , wage , lithuanian , incentive , economics , legislation , net income , latvian , wages and salaries , business , market economy , accounting , finance , political science , linguistics , philosophy , law
Wages are remuneration for the use of human labour at a given time, it is a social guarantee for the well-being of people, and each worker has a significant net salary on hand, formed by applying labour taxes to gross wages. In Latvia, the tax system is constantly changing, such changes have a negative impact on economic outcomes and citizens' incomes, because labour tax rates remain relatively high, the tax burden for minimum wage recipients is high and they cannot fully benefit from tax incentives. The study carried out a theoretical description of net salary, calculated and compared the impact of labor taxes on the net salary size of the worker in Latvia and Lithuania.