The proposal is similar to a system that is in place in Estonia, with minimum social contributions calculated in relation to the full-time minimum wage, regardless of actual hours worked. While this approach would close off one channel of underreporting, it would also make genuine part-time work much more expensive. The share of part-time workers in Latvia is already low in international comparison and this new tax would risk pricing certain labour force groups out of employment, including low-productivity workers, and those with a strong preference for part-time work.