Employer of Record in Latvia
General Information
- Currency: Euro (EUR)
- Employer Taxes: 20.77% to 23.59%
- Payroll Frequency: Monthly
- Employee Costs: 10.50%
- Capital: Riga
- Fiscal Year: 1 January – 31 December
Main Aspects of the Labour Code
Minimum Wage
General: The monthly minimum wage in Latvia is 700 EUR, as determined by the cabinet.
Payroll
Payroll Cycle: In Latvia, payroll is typically processed monthly, but employers are required to make payments at least twice a month unless there’s an agreement with the employee for monthly payments.
Working Hours
General: The standard workweek in Latvia is 8 hours a day, totaling 40 hours per week.
Overtime: In Latvia, overtime work or work done on public holidays must be agreed upon in advance, and it is compensated at 200% of the regular salary rate.
Leave
Annual Leave (Vacation):
In Latvia, employees who have worked for at least six consecutive months are entitled to a minimum of 20 days of annual leave, excluding public holidays. Employees under 18 years old receive one month of paid leave. Annual leave can be split into parts, but at least one part must be two uninterrupted weeks. Up to two weeks of unused leave can be carried over to the next year with a written agreement.
Public Holidays
In Latvia, if a public holiday falls on a weekend, it is generally lost, except for Army Day, which is moved to a Friday or Monday if it falls on a Sunday. Additionally, the working day before a public holiday is shortened by one hour.
Public Holidays
| Date | Day | Holiday |
| 1 Jan 2024 | Monday | New Year`s Day |
| 29 Mar 2024 | Friday | Good Friday |
| 1 Apr 2024 | Monday | Easter Monday |
| 1 May 2024 | Wednesday | Labor day |
| 4 May 2024 | Saturday | Independence Day |
| 23 Jun 2024 | Sunday | Song and Dance Festival |
| 24 Jun 2024 | Monday | Song and Dance Festival Holiday |
| 18 Nov 2024 | Monday | Proclamation Day |
| 24 Dec 2024 | Tuesday | Christmas Eve |
| 25 Dec 2024 | Wednesday | Christmas Day |
| 26 Dec 2024 | Thursday | Christmas Holiday |
| 31 Dec 2024 | Tuesday | New Year’s Eve |
Sick Days
In Latvia, the first day of sickness is unpaid. The employer covers 75% of the salary on the second and third days, and 80% from the fourth to the tenth day. Starting from the eleventh day, sick pay is compensated by the state.
Maternity Leave
In Latvia, maternity leave benefits are paid in two parts: 56 or 70 calendar days before childbirth and 56 or 70 calendar days after childbirth. The extended 70-day benefit is provided if the employee was registered as pregnant by the 12th week or if there were complications or multiple births. The maximum duration for receiving maternity benefits is 140 calendar days.
Parental Leave
In Latvia, paternity benefits are granted to the child’s father and one of the two adopters of a child under three years. For children born on or after January 1, 2023, parental benefits are structured with a basic and a non-transferable part, allowing parents to choose between a 13-month or 19-month benefit period. Each option has specific conditions regarding the duration, percentage of the claimant’s average contributory salary, and how the benefits can be used. Maternity and parental benefits cannot be received simultaneously for the same child.
Taxation
Employer Payroll Contributions
| 23.59% | National Social Insurance and Solidarity Tax (NSIC) for employment with a company registered in Latvia/EU/EEA (split rate) income maximum 78,100 EUR Annually |
| 20.77% | National Social Insurance and Solidarity Tax (NSIC) for employment with a company registered in Latvia/EU/EEA (employee eligible for retirement-split rate) |
| 20.77% to 23.59% | Total Employment Cost |
Employee Payroll Contributions
| 10.50% | National Social Insurance and Solidarity Tax (NSIC) for employment with a company registered in Latvia/EU/EEA (split rate) income maximum 78,100 EUR annually |
| 9.25% |
National Social Insurance and Solidarity Tax (NSIC) for employment with a company registered in Latvia/EU/EEA (employee eligible for retirement-split rate)
|
| 9.25% to 10.50% | Total Employee Cost |
|
Employee Income Tax
|
|
| 20.00% | up to 20,004 EUR Annually |
| 23.00% | 20,005 – 78,100 EUR Annually |
| 31.00% | 78,100 EUR and above Annually |
Employer of Record in Latvia with Brain Source International
When discussing the Employer of Record (EOR) services in Latvia, Brain Source International stands out as a key player. They offer comprehensive EOR solutions, helping companies manage their workforce in Latvia without needing to establish a legal entity in the country.
An Employer of Record in Latvia takes on the legal responsibilities of employing staff on behalf of a company, including handling payroll, taxes, benefits, and compliance with local labor laws. Brain Source International, with its extensive regional experience, ensures that companies can expand their operations in Latvia smoothly and efficiently.
Their services are particularly valuable for companies looking to hire independent contractors or full-time employees in Latvia. Brain Source International helps manage the complex regulatory environment, ensuring that all local employment laws are adhered to, which reduces the risk of non-compliance for businesses.
By partnering with an EOR like Brain Source International in Latvia, companies can focus on their core business activities while the EOR handles the administrative and legal aspects of employment. This partnership allows for faster market entry, reduced overhead costs, and the flexibility to scale the workforce as needed.