Latvia

Latvia, a Baltic nation, offers a strategic location within the European Union, a skilled multilingual workforce, and a business-friendly environment. With competitive labor costs and a transparent legal framework, it's an attractive destination for companies aiming to expand in Europe. However, understanding local employment laws, tax obligations, and payroll practices is crucial for compliance and successful operations.
Contractor Management
EOR
Payroll
Contractor of Record
Currency
Euro (EUR)
Payroll Frequency
Bi-monthly or monthly
Employer Taxes
20.77% to 23.59%

Overview

Population
~1.9 million
Language
Latvian
Capital
Riga
Currency
Euro (EUR)
Country code
+371
Min wage
740 EUR/month
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
40 hours per week

Payroll

Salaried Employees
Time-Based Employees

Monthly or bi-weekly, as stipulated in the employment contract

13th Salary

Not mandatory; subject to employer discretion 

Avg employer tax

20.77% to 23.59%

Tax Breakdown

Employer Contributions:

National Social Insurance Contributions (NSIC)
23.59% of gross salary

Employee Contributions:

NSIC
10.5% of gross salary

Personal Income Tax (PIT):

Up to €105,300/year
25.5%
Above €105,300/year
33%
Additional 3%
on income exceeding €200,000/year

VAT

VAT

21%

Tax Calculation for Latvia
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LV
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Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Latvia typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the State Revenue Service (VID) before the commencement of work

Payroll Setup

  • Ensure accurate calculation and withholding of taxes and social contributions
  • Provide payslips detailing earnings and deductions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Latvia
When drafting an employment contract for employees in Latvia, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • First 10 days: Paid by the employer
  • From day 11 onwards: Paid by the state social insurance agency
  • A medical certificate is required
Maternity leave
  • 112 calendar days: 56 days before and 56 days after childbirth
  • Paid at 80% of the average salary, funded by the state
Paternity leave
  • 10 working days within two months after the child's birth
  • Paid at 80% of the average salary, funded by the state

Parental Leave:

  • Up to 18 months until the child reaches 8 years of age
  • Can be shared between parents
  • Paid at 60% of the average salary, funded by the state
Annual Leave
12 Public holidays in Latvia

Note: Employees are entitled to paid leave on public holidays. If required to work, compensatory time off or additional pay is mandated.

1st
New Year's Day
29th
Good Friday
1st
Easter
1st
Labor Day
4th
Restoration of Independence Day
23rd
Midsummer Eve
24th
Midsummer Day
18th
Proclamation Day of the Republic of Latvi
24th
Christmas Eve
25th
Christmas Day
26th
Boxing Day
31st
New Year's Eve
  • 1 Jan: New Year's Day
  • 15 Apr: Good Friday
  • 18 Apr: Easter Monday
  • 1 May: Labor Day
  • 4 May: Independence Restoration Day
  • 23 Jun: Midsummer's Eve
  • 24 Jun: St John's Day
  • 18 Nov: Independence Day
  • 24 Dec: Christmas Eve
  • 25 Dec: Christmas Day
  • 26 Dec: 2nd Day of Christmas
  • 31 Dec: New Year's Eve

Termination Process

Permissible Grounds

  • Mutual agreement
  • Redundancy
  • Misconduct
  • Performance issues

Notice Period

  • Employee-initiated termination: 1 month
  • Employer-initiated termination: 1 month, with justification and, in some cases, severance pay

Severance Pay

  • Varies based on tenure and reason for termination
  • For redundancy:
    • Less than 5 years: 1 month's salary
    • 5–10 years: 2 months' salary
    • 10–20 years: 3 months' salary
    • Over 20 years: 4 months' salary

Probation Period

Up to 3 months, during which either party can terminate the contract with a 3-day notice

Personal Details

Name, contact information, and role of the employee.

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Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in Latvia
with RemotePass

Latvia offers a strategic gateway to the European market, with a skilled workforce and favorable business conditions. RemotePass simplifies the process of hiring and managing employees in Latvia, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Latvia.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

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Latvia

Latvia, a Baltic nation, offers a strategic location within the European Union, a skilled multilingual workforce, and a business-friendly environment. With competitive labor costs and a transparent legal framework, it's an attractive destination for companies aiming to expand in Europe. However, understanding local employment laws, tax obligations, and payroll practices is crucial for compliance and successful operations.
Contractor Management
EOR
Payroll
Contractor of Record
العملة
Euro (EUR)
تردد الرواتب
Bi-monthly or monthly
ضرائب أصحاب العمل
20.77% to 23.59%

نظرة عامة

التركيبة السكانية
~1.9 million
اللغة
Latvian
العاصمة
Riga
العملة
Euro (EUR)
رمز الاتصال الدولي
+371
الحد الأدنى للأجور
740 EUR/month
ساعات العمل
8 hours per day
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
40 hours per week

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني

Monthly or bi-weekly, as stipulated in the employment contract

13th Salary

Not mandatory; subject to employer discretion 

متوسط ​​ضريبة صاحب العمل

20.77% to 23.59%

تحصيل الضرائب

Employer Contributions:

National Social Insurance Contributions (NSIC)
23.59% of gross salary

Employee Contributions:

NSIC
10.5% of gross salary

Personal Income Tax (PIT):

Up to €105,300/year
25.5%
Above €105,300/year
33%
Additional 3%
on income exceeding €200,000/year

ضريبة القيمة المضافة

ضريبة القيمة المضافة

21%

حساب الضريبة في Latvia
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LV
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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في Latvia عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the State Revenue Service (VID) before the commencement of work

Payroll Setup

  • Ensure accurate calculation and withholding of taxes and social contributions
  • Provide payslips detailing earnings and deductions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في Latvia
عند إعداد عقد عمل للموظفين في Latvia يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • First 10 days: Paid by the employer
  • From day 11 onwards: Paid by the state social insurance agency
  • A medical certificate is required
إجازة الأمومة
  • 112 calendar days: 56 days before and 56 days after childbirth
  • Paid at 80% of the average salary, funded by the state
إجازة الأبوة
  • 10 working days within two months after the child's birth
  • Paid at 80% of the average salary, funded by the state

Parental Leave:

  • Up to 18 months until the child reaches 8 years of age
  • Can be shared between parents
  • Paid at 60% of the average salary, funded by the state
Annual Leave
12 عطلات رسمية في Latvia

Note: Employees are entitled to paid leave on public holidays. If required to work, compensatory time off or additional pay is mandated.

1st
New Year's Day
29th
Good Friday
1st
Easter
1st
Labor Day
4th
Restoration of Independence Day
23rd
Midsummer Eve
24th
Midsummer Day
18th
Proclamation Day of the Republic of Latvi
24th
Christmas Eve
25th
Christmas Day
26th
Boxing Day
31st
New Year's Eve
  • 1 Jan: New Year's Day
  • 15 Apr: Good Friday
  • 18 Apr: Easter Monday
  • 1 May: Labor Day
  • 4 May: Independence Restoration Day
  • 23 Jun: Midsummer's Eve
  • 24 Jun: St John's Day
  • 18 Nov: Independence Day
  • 24 Dec: Christmas Eve
  • 25 Dec: Christmas Day
  • 26 Dec: 2nd Day of Christmas
  • 31 Dec: New Year's Eve

عملية إنهاء العقود

Permissible Grounds

  • Mutual agreement
  • Redundancy
  • Misconduct
  • Performance issues

Notice Period

  • Employee-initiated termination: 1 month
  • Employer-initiated termination: 1 month, with justification and, in some cases, severance pay

Severance Pay

  • Varies based on tenure and reason for termination
  • For redundancy:
    • Less than 5 years: 1 month's salary
    • 5–10 years: 2 months' salary
    • 10–20 years: 3 months' salary
    • Over 20 years: 4 months' salary

Probation Period

Up to 3 months, during which either party can terminate the contract with a 3-day notice

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

نمِّ فريقك في Latvia
مع ريموت باس

Latvia offers a strategic gateway to the European market, with a skilled workforce and favorable business conditions. RemotePass simplifies the process of hiring and managing employees in Latvia, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك Latvia.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

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