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Latvia Employment Guide

Your quick guide on talent and labor compliance norms in Latvia




Euro (EUR)



Payroll Frequency


GDP per Capita


Employer Tax

20.77% to 23.59%

Talent Overview

The Republic of Latvia is located around the Baltic Sea between Estonia and Lithuania. The country holds an economic freedom score of 74.8, thus making Latvia the 18th freest country in the 2022 list. There has been remarkable growth in the GDP of Latvia since 2021. Out of 45 countries in the European region, Latvia holds the rank of 13th.

Major economic hubs:

Riga, Daugavpils, Liepāja, Jelgava

Skills in demand:

IT Professionals, Software Engineer, Developer and Managers

Latvia Map

Local Universities

The top local universities in Latvia are as follows:


Latvijas Universitate (University of Latvia)


Local: 1

World : 1010

Salary Data

The table below mentions the average salary in Latvia for most common jobs:

Job Title Average Monthly Salary (EUR) Average Monthly Salary (USD)
Financial Manager 3,671 EUR 3,920 USD
General Manager 3,414 EUR 3,645 USD
Business Development Manager 3,087 EUR 3,296 USD
Financial Analyst 2,376 EUR 2,537 USD
Business Analyst 2,376 EUR 2,537 USD
Project Manager 2,177 EUR 2,324 USD

Talent Sourcing Tips

Top Local Job Boards:

JobFinder, Millionmaker, LinkedIn

Number of LinkedIn users:


Top Recruitment Agencies:

Workin, GPRecruitment, Clutch

Employing in Latvia

There are statutory laws to hire from Latvia; the employer must know specific rules, leaves, allowances, and bonuses. This section provides all the information.

Employee Contract

The employment contract must be in the official language of Latvia; Latvian.

Probation Period

In Latvia, the probation period is up to 3 months.

Public and Provincial Holidays

Date Holiday Type
1 Jan New Year’s Day National Holiday
29 Mar Good Friday National Holiday
31 Mar Easter Sunday National Holiday
1 Apr Easter Monday National Holiday
1 May Labour Day/Constituent Assembly Convocation Day National Holiday
4 May Independence Restoration Day National Holiday
6 May Independence Restoration Day Holiday National Holiday
12 May Mother’s Day National Holiday
19 May Whitsunday National Holiday
23 Jun Midsummer’s Eve National Holiday
24 Jun Midsummer Day / St John’s Day National Holiday
18 Nov Republic of Latvia Proclamation Day National Holiday
24 Dec Christmas Eve National Holiday
25 Dec Christmas Day National Holiday
26 Dec 2nd Day of Christmas National Holiday
31 Dec New Year’s Eve National Holiday

Employee Leaves

Type Of Leave Number of Days Mandatory
Annual Leaves One month Yes
Sick Leaves Up to 10 days Yes
Maternity Leaves 112 days  Yes



Payroll 1

Payroll Cycle

In Latvia, the payroll cycle is Monthly.

Payroll 2

Minimum Wage

The Minimum wage in Latvia is 500 EUR per month.

Payroll 3

Overtime Pay

In Latvia, the overtime pay must be at least 100% of the regular compensation. However, the contract can include higher overtime pay based on work performed.


13th Month Pay:

In Latvia, there is no statutory law for 13-month pay.

Employee Benefits:

  • Social security
  • Paid Leaves
  • Maternity leave
  • Bonuses
  • Allowances


Employer Payroll Tax:

Type of Contribution Contribution
Employment with company registered in Latvia/EU/EEA (split rate) 23.59%
Employment with company registered in Latvia/EU/EEA (when the employee is eligible for retirement and also split rate): 20.77%

Employee Payroll Tax:

Type of Contribution Contribution
Employment with company registered in Latvia/EU/EEA (split rate) 10.5%
Employment with company registered in Latvia/EU/EEA (when the employee is eligible for retirement and also split rate): 9.25%

Employee Income Tax:

Annual Taxable Income Tax rate
Up to 20,004 EUR 20%
Between 20,004 to 78,100 EUR 23%
Above 78,100 EUR 31%

Solidarity Tax (ST):

Solidarity Tax is only applicable when the maximum income amount exceeds. The applicable rate of ST is 25% from the employer.


In Latvia, the standard rate of VAT is 21%.

Offboarding & Termination

Both the employee and employer can terminate the employment contract. However, before termination of the contract, both parties must inform the other in writing. The employer can terminate the contract based on misconduct or redundancy. 

There is no statutory law for notice periods in Latvia. However, it can be included in the contract based on a collective agreement.

In Latvia, the severance pay is based on years of service by the employee.

Years of service Severance Pay
Up to 5 years of service One month
Between 5 years to 10 years of service Two months
Between 10 years to 20 years of service Three months
Above 20 years of service Four months


Visa and Immigration

In order to work in the Republic of Latvia, an individual must need a work permit. There are four types of visas available in Latvia. The individual can choose the work visa based on requirements and submit all the documents along with the employment contract.

Work Visa Type Details
A Type Issued for the ones who want to work for a Lativian Employer.
C & E Type Issued for the ones who got transferred to Latvia through an intra-company.
D Type Issued for the ones who want to visit Latvia for a Meeting
Seasonal Type Issued for the ones who want to work on seasonal purposes such as agricultural and tourism jobs


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Minimum Wage

Overtime Pay

Visa & Immigration