Latvia is a northeastern European country in the middle of three Baltic states. It is divided into 26 self-governed rajons (districts). Outside of this structure are seven major cities – designated republican cities with their own governments. Latvia’s main trading partners are Germany, Lithuania, Estonia, Russia, Poland, and the United Kingdom. Exports include wood, wood products, metals, foodstuffs, and textiles. Latvia imports machinery, oil, foodstuffs, and chemical products.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Latvia.
On this page
Fast-track your talent onboarding while ensuring 100% compliance with local regulations. using an Employer of Record in Latvia
Calculate net salary post deductions and compare it with the salary in other countries instantly.
Receive process support by an experienced team of experts & pay your talent on time and in their local currency, ideal for companies looking to hire employees or contractors in Latvia
Easily onboard your remote talent in Latvia through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.
Latvia is a northeastern European country in the middle of three Baltic states. It is divided into 26 self-governed rajons (districts). Outside of this structure are seven major cities – designated republican cities with their own governments. Latvia’s main trading partners are Germany, Lithuania, Estonia, Russia, Poland, and the United Kingdom. Exports include wood, wood products, metals, foodstuffs, and textiles. Latvia imports machinery, oil, foodstuffs, and chemical products.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Latvia.
The national holidays mentioned below are valid for the year 2026 and are critical for hiring in Latvia planning:
The national holidays mentioned below are valid for the year 2026.
| January 1 | New Year’s Day | |
| April 3 | Good Friday | Movable - The Friday before Easter |
| April 6 | Easter Monday | Movable - The first Sunday of a full moon after March 21 |
| May 1 | Labor Day | |
| May 4 | Independence Restoration Day | |
| June 23 | Midsummer’s Eve | Summer solstice |
| June 24 | Midsummer Day | Movable - Summer solstice |
| November 18 | Independence Day | |
| December 24 | Christmas Eve | |
| December 25-26 | Christmas Day | |
| December 31 | New Year’s Eve |
The approximate time for sharing the contract with an employee in Latvia is 2 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
In general, the rate of compulsory contributions if an employee is insured for all types of social insurance is 34.09%, of which 23.59% is paid by the employer, and 10.50% is paid by the employee.
The contribution rates to the national social insurance also depend on the status of the employee and employer, as summarized below:
|
National Social Insurance Contribution Rates |
|||
|
Employee/Employer Status |
Employer Contributions |
Employee Contributions |
Total |
| Domestic Latvian employee who is employed with a company registered in Latvia/EU/EEA | 23.59% | 10.50% | 34.09% |
| Domestic Latvian employee who is employed with a company registered in Latvia/EU/EEA and has reached the age of entitlement for an old-age pension (whether the pension is granted on preferential terms or prematurely) | 20.77% | 9.25% | 30.02% |
| Foreign non-Latvian employee with a foreign employer | 31.83% | 31.83% | |
Regular working time must not exceed eight hours per day and 40 hours per week. Every employee has the right to a work break if their daily working time exceeds six hours. A break of at least 30 minutes must be granted not later than four hours after the start of work.
Overtime work may not exceed eight hours on average within a seven-day period, which is calculated in the accounting period that does not exceed four months.
The probation period may not exceed three months. However, it is possible to agree to a probationary period longer than three months but does not exceed six months in a collective labor agreement concluded with the employee’s union, without reducing the overall level of protection of employees.
During probation, both employers and employees can terminate the contract within 3 days’ notice. Termination notice periods are two weeks for limited contracts and vary between 10 days and two months for unlimited contracts.
Regular working time must not exceed eight hours per day and 40 hours per week. Every employee has the right to a work break if their daily working time exceeds six hours. A break of at least 30 minutes must be granted not later than four hours after the start of work.
Overtime work may not exceed eight hours on average within a seven-day period, which is calculated in the accounting period that does not exceed four months.
The probation period may not exceed three months. However, it is possible to agree to a probationary period longer than three months but does not exceed six months in a collective labor agreement concluded with the employee’s union, without reducing the overall level of protection of employees.
During probation, both employers and employees can terminate the contract within 3 days’ notice. Termination notice periods are two weeks for limited contracts and vary between 10 days and two months for unlimited contracts.
In general, the rate of compulsory contributions if an employee is insured for all types of social insurance is 34.09%, of which 23.59% is paid by the employer, and 10.50% is paid by the employee.
The contribution rates to the national social insurance also depend on the status of the employee and employer, as summarized below:
|
National Social Insurance Contribution Rates |
|||
|
Employee/Employer Status |
Employer Contributions |
Employee Contributions |
Total |
| Domestic Latvian employee who is employed with a company registered in Latvia/EU/EEA | 23.59% | 10.50% | 34.09% |
| Domestic Latvian employee who is employed with a company registered in Latvia/EU/EEA and has reached the age of entitlement for an old-age pension (whether the pension is granted on preferential terms or prematurely) | 20.77% | 9.25% | 30.02% |
| Foreign non-Latvian employee with a foreign employer | 31.83% | 31.83% | |
WorkMotion operates through its own entity in Latvia, which means every hire is backed by direct compliance accountability — not a third-party intermediary arrangement.
Here is how the process works from the signed offer to the first paycheck.
WorkMotion generates an employment contract aligned with Latvia’s Labour Law.
Contracts must be written in Latvian, and if the employee is a foreign national without sufficient proficiency in the state language, the employer is legally required to provide the terms in a language the employee understands.
WorkMotion handles both the Latvian-language contract and any required translation, so nothing falls through the gap.
The contract covers all mandatory terms:
Before payroll can run, the employee must be registered with Latvia’s State Revenue Service (Valsts ieņēmumu dienests, VID) and the State Social Insurance Agency (Valsts sociālās apdrošināšanas aģentūra, VSAA).
WorkMotion handles both registrations as part of the standard onboarding process. For non-EU/EEA nationals, additional immigration steps apply, including State Employment Agency (SEA) approval, which has been mandatory for foreign-national hires since January 2025.
WorkMotion’s team manages this coordination so your HR team does not have to track multiple government agencies.
Latvia uses a progressive personal income tax system:
WorkMotion accurately calculates gross-to-net, applies the correct withholding rates, and sets up payroll in euros.
Latvia’s Labour Law mandates a defined set of employee entitlements. WorkMotion enrols each hire into the required benefits from day one:
Latvia operates a nationalized healthcare system, so private health insurance is not a statutory requirement.
Each month, WorkMotion processes payroll, withholds personal income tax, and remits employer and employee social contributions to the VSAA.
Monthly EDS reports are filed with the VID by the 23rd of the following month. Payslips are generated and accessible through the platform.
Latvia’s employment regulations change.
The minimum gross monthly salary increased to €780 in January 2026, and pay transparency legislation is expected to take effect by June 2026.
WorkMotion’s compliance team monitors regulatory updates and automatically applies changes to employment terms, contribution rates, and reporting requirements — so your contracts and payroll stay current without your HR team having to track Latvian legislative updates.
For most companies hiring one to a handful of people in Latvia, entity setup is a cost and time commitment that does not match the scale of the hire.
| WorkMotion EOR | Latvia Entity Setup | |
|---|---|---|
| Setup cost | Per-employee monthly fee; no incorporation cost | €2,800+ minimum share capital (SIA); professional fees from €2,000+ |
| Time to first hire | Days from signed contract | Weeks to months, including bank account opening, tax registration, and VSAA enrollment |
| Ongoing legal exposure | Managed by WorkMotion’s own licensed entity and compliance team | Carried by your company; requires local legal, accounting, and HR expertise |
| Ongoing admin burden | Monthly invoice; WorkMotion handles payroll, filings, and reporting | Monthly VID and VSAA filings, annual statutory audit requirements above certain thresholds, ongoing accounting |
| Exit flexibility | Offboard an employee without dissolving a legal structure | Winding down a Latvian SIA requires a formal liquidation process |
EOR is the right fit when you are hiring a small number of people in Latvia, testing the market, or need to move quickly.
If you are building a large, permanent team in Latvia and want full operational control under your own brand, entity setup becomes worth evaluating – and WorkMotion’s Direct Hiring solution can support that transition when you are ready.
Use our Employment Cost Calculator to see the full cost of hiring in Latvia before you commit.
Latvia’s Labour Law is detailed, and several of its requirements catch foreign employers off guard — particularly those used to more flexible employment frameworks in other markets.
Latvia’s Labour Law treats indefinite-term contracts as the default.
Fixed-term agreements are permitted only in specific, defined circumstances — seasonal work, covering for an absent employee, or completing a clearly defined task.
Using a fixed-term contract as a general-purpose arrangement to avoid employment obligations is not legally sound. WorkMotion’s contract generation applies the correct contract type based on the actual employment situation.
As of January 1, 2025, employers must obtain confirmation from the State Employment Agency before engaging a non-EU/EEA national.
The employer must register the vacancy with the SEA, which then determines whether a foreign worker is needed.
Skipping this step creates immigration compliance exposure for both the employer and the employee. WorkMotion manages this process as part of onboarding for any hire requiring work authorization.
The first day of sick leave is generally unpaid. Days two through three are funded by the employer at 75% of normal wages.
Days four through ten are the employer’s responsibility at 80%. Only from day 11 does the VSAA take over.
Employers who assume sick leave is entirely state-funded from day one will face unexpected payroll obligations. WorkMotion automatically applies the correct sick pay calculation.
Wages must be paid at least twice a month unless the employee and employer have agreed in writing to monthly payments.
Monthly VID and VSAA filings must be submitted and contributions remitted by the 23rd of the following month.
Late payments and incorrect contributions attract audits and fines from the State Revenue Service. WorkMotion’s payroll cycle is built around these deadlines — not around your internal finance calendar.
B2B SaaS companies headquartered in Germany or the Netherlands frequently use WorkMotion to hire software developers and product engineers in Latvia.
Riga has a growing tech ecosystem. There are over 600 active startups, with more than half in the ICT sector. Furthermore, Latvian developers are recognized for strong technical skills across Java, Python, and JavaScript stacks.
For a German company that cannot find the right backend engineer domestically, hiring through an employer of record in Latvia removes the entity barrier and gets the hire onboarded in days.
Latvia’s position as an EU and Eurozone member makes it a practical base for UK companies that want a foothold in the European market post-Brexit.
Fintech firms, e-commerce operators, and digital services companies use WorkMotion’s Latvia EOR to hire local sales, operations, or customer success staff without setting up a Latvian subsidiary.
The hire gets a locally compliant employment contract; the company gets a team member in the market without a six-month incorporation project.
NGOs and non-profit organizations operating across Europe use WorkMotion to hire program managers, communications leads, and field staff in Latvia.
Latvia’s multilingual workforce — with strong English, Russian, and Latvian proficiency — makes it a practical hiring location for organizations that need staff who can operate across the Baltic and Eastern European region.
If you’ve found the right hire in Latvia, but don’t have time to go through a local entity, WorkMotion is here to help.
WorkMotion’s own entity in Latvia means you can put them on a fully compliant employment contract – with locally correct payroll, statutory benefits, and state registrations handled – without incorporating a Latvian SIA or managing VID and VSAA filings yourself.
From signed offer to first paycheck, the process takes days, not months. If your team is ready to hire in Latvia, book a demo with WorkMotion today.
WorkMotion operates through its own entity in Latvia, which means the employment relationship is direct and fully compliant – not routed through a local intermediary carrying its own legal and operational risks.
Since January 1, 2025, hiring a non-EU/EEA national in Latvia requires prior confirmation from the State Employment Agency (SEA).
The employer must register the vacancy with the SEA, which then assesses whether a foreign worker is needed before the hire can proceed. This is a mandatory step — skipping it creates immigration compliance exposure for both the employer and the employee.
WorkMotion manages the SEA coordination as part of the standard onboarding process for any hire requiring work authorization in Latvia.
Latvia’s Labour Law treats indefinite-term employment as the default, and fixed-term contracts are only permitted in specific, legally defined circumstances, including seasonal work, covering an absent employee, or completing a clearly scoped task.
Using a fixed-term contract as a general flexibility mechanism is not legally sound under Latvian law and exposes the employer to reclassification risk.
Latvia’s sick leave structure is more nuanced than a simple state-funded model.
The first day of sick leave is generally unpaid; days two through three are the employer’s responsibility at 75% of normal wages; days four through ten are also employer-funded, at 80%. Only from day 11 does the State Social Insurance Agency (VSAA) take over, covering sick pay at 80% of average wages for up to 26 weeks.
Latvia’s minimum gross monthly salary increased to €780 in January 2026, and pay transparency legislation is expected to take effect by June 2026.
There is no automatic adjustment mechanism for existing contracts — employers must actively review and update salary levels when the minimum wage changes. WorkMotion’s compliance team monitors Latvian legislative updates and flags affected contracts before the effective date, so your payroll stays current without your HR team having to track Latvian regulatory changes.
Once an offer is signed, WorkMotion generates a Latvian-language employment contract, registers the employee with the State Revenue Service (VID) and the State Social Insurance Agency (VSAA), and sets up payroll in euros — Latvia’s official currency.
For EU/EEA nationals without additional immigration requirements, the process typically takes around 5 days.
Discover how WorkMotion helps you hire anywhere, stay compliant, and manage global teams with ease.
Trusted by
![idWjC-9cC6_logos 1 [Vectorized]](https://workmotion.com/wp-content/uploads/2026/02/idWjC-9cC6_logos-1-Vectorized.svg)
