In its latest episode, Euronews' Real Economy magazine travels to Latvia to understand whether increased minimum wages allow people to cope with the rising cost of living.

Minimum wages have recently increased across Europe. This year, in Latvia, the minimum wage rose by 24% from €500 to currently €620 per month. This is the highest increase in the European Union.

Across the European Union, the minimum wage varies greatly from country to country, ranging from €399 per month in Bulgaria to €2,387 per month in Luxembourg. 

The lowest paid do not feel the difference

Euronews travels to Latvia to discover if the minimum wage increase is enough to allow people to cope with the rising cost of living.

“I don't feel the increase in my salary at all," says Vizbulīte Horste, a mail carrier. "Prices have gone up a lot for everything, including for food.”

To fight against in-work poverty, a new European directive requires member countries to ensure that their national minimum wage is adequate. How is this determined, and what does it mean for workers and businesses?

The episode also includes an interview with Evika Silina, Latvia’s Welfare Minister in charge of labour. She speaks about the need to reach a consensus between trade unions and employers on a further increase of the minimum wage.