Talent Wiki - Latvia
Your quick guide on talent and labor compliance norms in Latvia
Capital
Riga
Currency
Euro (EUR)
Languages
Latvian
Payroll Frequency
Monthly
GDP per Capita
$21,481
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
Local Universities
The top local universities, including global rank in Latvia, are:
Latvijas Lauksaimniecibas universitate (Latvia University of Agriculture)
RANKING
Local: 4
World : 3489
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:
427,900
Top Recruitment Agencies:
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 |
| 7 Apr | Good Friday | National Holiday |
| 10 Apr | Easter Monday | National Holiday |
| 1 May | Labour Day | National Holiday |
| 4 May | Independence Restoration Day | National Holiday |
| 5 May | Independence Restoration Day Holiday | National Holiday |
| 23 Jun | Midsummer’s Eve | National Holiday |
| 24 Jun | St John’s Day | National Holiday |
| 18 Nov | Independence 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
Payroll Cycle
In Latvia, the payroll cycle is Monthly.
Minimum Wage
The Minimum wage in Latvia is 500 EUR per month.
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.
Bonus
13th Month Pay:
In Latvia, there is no statutory law for 13-month pay.
Employee Benefits:
- Social security
- Paid Leaves
- Maternity leave
- Bonuses
- Allowances
Taxes
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.
VAT:
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 |
