Latvia detains two over alleged "envelope salary" payments

Latvian authorities have detained two individuals in connection with the alleged distribution of undeclared wages, often referred to as "envelope salaries," at a company specializing in plumbing, heating, and air conditioning installations. The arrests occurred on the day the sum of 12,270 euros, intended for these payments, was being distributed to employees.

During searches of the company's offices in Riga, law enforcement discovered cash designated for wages not recorded in the company's accounting. This undeclared cash was seized and subsequently frozen. The criminal proceedings were initiated under Article 217.1 and Part 4 of Article 15 of the Criminal Law. This offense, involving the payment of undeclared wages in a significant amount, carries potential penalties including imprisonment for up to two years, short-term detention, probation, community service, or a fine, along with the potential revocation of commercial activity or professional licenses for up to three years.

Two individuals are currently facing charges in this criminal case. The National Tax and Customs Board (NMP) reminds the public that "envelope salaries" result in incomplete or non-existent social contributions for employees. This directly impacts their future eligibility for old-age pensions and other state-provided social services. The NMP is a direct administration institution under the Minister of the Interior, responsible for detecting, preventing, and investigating criminal offenses and other violations related to state revenue and customs matters, as well as sanctions, to protect Latvia's and the EU's economic interests and security.