Latvia Employment Guide

Latvia Employment Guide

Latvia, located in Northern Europe along the Baltic Sea, has a population of around 1.9 million. The country’s economy is driven by services, manufacturing, and information technology. Latvian labor law governs employment contracts, working hours, leave entitlements, minimum wage, and employee protections. Social security contributions cover pensions, healthcare, and unemployment benefits. Employers must comply with regulations on fair treatment, occupational safety, and employee rights. Latvia encourages skilled foreign workers to support its growing technology and service sectors.

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Currency

Euro (EUR)

Capital

Riga

Official language

Latvian

Salary Cycle

Monthly

Our Employment Guide in Latvia

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Maternity Leave in Latvia: A Comprehensive Guide for International Employers

Latvian employment law provides clear provisions for maternity benefits, ensuring pregnant employees receive 112 days of paid leave. This period is divided into two segments: 56 days must be taken before childbirth, while the remaining 56 days are reserved for the postnatal period. Employees receive compensation equivalent to 80% of their average salary, calculated based on earnings during the 12 months preceding their leave commencement. The State Social Insurance Agency (SSA) administers these payments, with employees having the option to extend their leave through parental leave arrangements.

Paternity Leave: Supporting New Fathers

Fathers are entitled to 10 working days of paid paternity leave at 80% of their average salary. This leave becomes available immediately following childbirth but must be utilized within six months of the child's birth. Similar to maternity benefits, the SSA handles compensation disbursement. For extended bonding time, fathers can combine this with additional parental leave options.

Parental Leave Options: Flexible Arrangements for Modern Families

Since January 2023, Latvia has implemented a progressive parental leave system offering two distinct options:

  • 13-Month Plan at 60% Salary: This includes a 9-month basic period (usable by either parent, including maternity leave) until the child's first birthday, plus 2 non-transferable months for each parent until the child turns 8.
  • 19-Month Plan at 43.75% Salary: This extended option provides a 15-month basic period (until age 1.5) plus the same 2+2 month non-transferable period for each parent.

The basic period can be taken by either parent, while the non-transferable months must be used by each respective parent before the child's eighth birthday. The SSA manages all financial aspects of these leave programs.

Sick Leave Provisions: Balancing Employee Health and Business Needs

Latvian employees benefit from generous sick leave entitlements, with no maximum duration limit though continuous leave cannot exceed 52 weeks. Employers should note that after six consecutive months of sick leave, or one year cumulative within three years, employers may issue termination notice with 10 days' effect even during ongoing illness.

The sick pay structure operates as follows:

DurationCompensation (% of salary)Responsible Party
Day 1UnpaidN/A
Days 2-375%Employer
Days 4-980%Employer
Day 10 to 26 weeks80% of average salarySSA

For serious medical conditions, this period may extend to 52 weeks at the same compensation rate.

Practical Considerations for Global HR Teams

When managing international teams in Latvia, companies like SailGlobal recommend establishing clear internal policies that complement statutory requirements. For instance, some organizations choose to top up government benefits to maintain employee income levels during leave periods. Proper documentation and timely communication with the SSA are crucial for seamless benefit administration. International HR managers should maintain updated records of employee leave balances and ensure compliance with notification requirements to avoid legal complications.

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