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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Minimum Wage Requirements

Effective January 1, 2024, the statutory minimum wage stands at €700 per month for full-time employment.

Personal Income Tax Structure

The personal income tax system operates on a progressive scale ranging from 20% to 31%, ensuring equitable contributions based on earnings.

Annual Gross Income (EUR)	Applicable Tax Rate
Below €20,004	20%
€20,004 - €78,100	23%
Above €78,100	31%

Employer Cost Considerations

Total employment costs typically amount to approximately 24% of an employee's gross salary. Key components include:

Employer Social Security Contributions: 23.5%
Mandatory Health and Safety Training: €5 per employee
Business Risk Fee: €0.36 per employee

Note: Social security contribution rates may vary for employees receiving state pensions for retirement, disability, or service.

Overtime Regulations and Working Hours

Overtime compensation is legally mandated for work exceeding standard hours. The maximum allowable overtime is 8 hours weekly, 48 hours monthly, and 200 hours annually. Employees must receive at least 100% of their regular hourly or daily rate for overtime work.

The standard work schedule is 8 hours daily and 40 hours weekly, typically Monday through Friday.

For comprehensive guidance on employment compliance and cost structures, SailGlobal provides tailored solutions to navigate local regulations effectively.

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