Latvia
Make employment in Latvia easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Latvia, all in one easy-to-use platform.
- Capital City
Riga
- Currency
Euro (€, EUR)
- Languages
Latvian
- Population size
1,907,675
Facts & Stats
- Capital City
Riga
- Currency
Euro (€, EUR)
- Languages
Latvian
- Population size
1,907,675
- Ease of doing business
Very easy
- Cost of living index
52.87 (2021)
- Payroll frequency
N/A
- VAT - standard rate
21%
- GDP - real growth rate
5.2% (2021)
Latvia is a little-known country that’s mostly a natural paradise, covered with 12,000 rivers and 3,000 small lakes — and it’s 54% forest, making it Europe’s sixth most forested country. It has some record-beating internet speeds and is the 14th easiest place to do business in the world, with equally high human development rankings (38th globally).
Grow your team in Latvia with Remote
Looking to hire employees in Latvia? Companies hiring in Latvia must either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.
Remote can employ team members in Latvia and keep you compliant. Remote can hire, onboard, and pay your Latvian team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Latvia. Sign up now to get started or talk to an expert for more details.
Risks of misclassification
Latvia, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Latvia may lead to fines and penalties for the offending company.
Employing in Latvia
Workers' rights in Latvia are protected by:
The Latvian Constitution of 1922 and
The Labour Law of 2002
— all of which guarantee equal pay for equal work, the right to individual and collective labour disputes, safe working environments, and protections against discrimination based on age, religion, and race.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Latvia.
Minimum Wage
Latvia’s minimum wage is at €700 per month from 1 January 2024.
We can help you get a new employee started in Latvia fast. The minimum onboarding time we need is only 10 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
14 Public holidays
Want to see and manage all holidays? Sign up for our free HRIS!
Effortless HR in Latvia: Take the Tour
Competitive benefits package in Latvia
At Remote, we’re passionate about helping you craft the best possible employee experience for your team. We are leading the way in developing globally competitive benefits programs. This means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive, and your company has the localized expertise to needed attract and keep the best global talent.
Our benefits packages in Latvia are tailored to fulfill the local needs of employees. Typically, our packages contain some or all of the following benefits:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Taxes in Latvia
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Latvia.
23.59%
National Social Insurance Contributions (payable on income up to €78,100)
23.59%
Solidarity Tax (payable only on income above EUR 78,100* However, the total Solidarity Tax Rate is 25% (Employer + Employee) and the remaining 9.09% collected is reimbursed by the Tax Authorities to the Employer in the following tax year.)
Types of leave
Latvian employees are entitled to four calendar weeks of fully paid annual vacation, not counting public holidays. Employees below age 18 are entitled to a full month’s paid vacation. Workers must have been employed for at least six months to qualify for paid vacation.
Employment termination
Termination process
Employers can dismiss employees for personal preferences, and serious misconduct. Workers who’re dismissed for misconduct must be warned beforehand and given an opportunity to explain their actions.
Further, employees can be entitled to severance pay if they are dismissed for personal reasons, i.e. without being found guilty of misconduct.
Notice period
Notice periods for employees
• 1 month is the maximum notice period
• Employees have the right to resign with immediate notice if they are morally unable to perform the work that is expected of them.
Notice periods for employers
• 10 days in cases of breach of contract or long-term sickness.
• 1 month in cases of redundancy, liquidation of an entity, lack of necessary skills, or the return of a substituted employee.
• 2 months in cases where termination is unrelated to breach of contract and the person has incapacity.
• Immediate termination is possible if there’s a loss of trust, use of alcohol or drugs during working hours, or an inability to work due to health reasons confirmed by a doctor.
Severance pay
Severance under Latvian law depends on tenure, that is:
Up to five years of service: one month’s pay
Five to ten years of service: two months’ pay
10 - 20 years of service: three months’ pay
20+ years of service: four months’ pay
Probation periods
In Latvia, the maximum probation period varies based on the type and length of the employment agreement.
• Fixed-term agreement of 6 months or less: Probation is 1 month fixed
• Fixed-term agreement between 6 months and 1 year: Maximum of 2 months
• Fixed-term agreement longer than 1 year: Maximum of 3 months
• Indefinite-term agreement: Maximum of 3 months
Fair Pricing in Latvia
Employer of Record
Hire and pay your global team
Starting at $599/month
for annual plans
Top features
Satisfaction guaranteed
No deposits or hidden fees
Zero onboarding or offboarding fees
Compliant equity incentives support including withholding and reporting
Built-in security and compliance
Fast onboarding (average 2-3 days)
Flexible, localized benefits
Top features
Only pay for contractors you actively work with
Work with contractors in 200+ countries
Create, edit, and sign tailored, localized contracts
Approve contractor invoices with one click or auto-pay
Transparent payments with complete visibility
Remote Payroll
Consolidate your multi-country payroll
$50
per employee/month
Top features
Reduce costs by centralizing payroll management
Ensure local compliance for every country
Direct support from in-house local payroll experts
Accurate, on-time, compliant payroll to level-up your employee experience
Tax and labor authority reporting handled for you
Top features
Guided onboarding and offboarding
Employee profile and document management
Time and attendance (time off and tracking)
Expense management and reimbursement
Employee self-serve on the platform and mobile app