Hire in Latvia

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.

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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.

A quick overview of Latvia

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Cost of living index

$$$ (61 of 139 nations)

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Currency

Euro (€, EUR)

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Payroll frequency

Biweekly/Monthly

Basic facts

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.

Capital

Riga

Official language/s

Latvian

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Population

1.88 million (2023 est.)

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VAT - standard rate

21%

The national holidays mentioned below are valid for the year 2025.

January 1New Year’s Day
April 18Good FridayMovable - The Friday before Easter
April 21Easter MondayMovable - The first Sunday of a full moon after March 21
May 1Labor Day
May 4Independence Restoration Day
June 23Midsummer’s EveSummer solstice
June 24Midsummer DayMovable - Summer solstice
November 18Independence Day
December 24Christmas Eve
December 25-26Christmas Day
December 31New 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.

  • A Solidarity Tax of 25% is applicable for the portion of incomes exceeding €105,300 per year.
  • The employer, at the written request of the employee, has the obligation to grant sufficient time to the employee, within the scope of contracted working time, for seeking another job, if a notice of termination of an employment contract has been given for certain causes.
  • If an employee and an employer agree to perform work remotely, the expenses of the employee related to the performance of remote work must be covered by the employer.

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%

Working Hours

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

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.

Probation Period

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.

 

Termination Notice Period

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.

Working Hours

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

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.

Probation Period

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.

 

Termination Notice Period

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.

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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%