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Country hiring guide

Hiring in Latvia ๐Ÿ‡ฑ๐Ÿ‡ป

Mid-sized workforce with strengths in IT, finance and logistics; high multilingualism. Employer on-costs run ~23.6% on top of gross salary. Here is what to know before your first Latvia hire.

Calculate a Latvia hire โ†’
Capital cityRiga
CurrencyEuro (EUR)
LanguagesLatvian (official); Russian widely spoken; English in business
Population~1.9 million
Payroll frequencyMonthly; no statutory 13th salary
VAT standard rate21% (PVN)
Employer burden*~23.6% of gross
TGTC flat EOR fee$499/mo ยท Tier B
Overview

Employing in Latvia

Employment in Latvia runs under its national labour code, which sets the floor for wages, working hours, leave, and notice. Here are the essentials before you make an offer.

Minimum wage

  • EUR 780/month gross from Jan 2026
  • Up from EUR 740 in 2025

Payroll cycle & extra pay

  • Monthly payment
  • No mandatory 13th salary

Public holidays

  • About 12 public holidays per year

Onboarding & probation

  • Written contract required
  • Probation up to 3 months (6 under CBA)
Employer costs

What you pay on top of salary

Employer on-costs in Latvia run ~23.6% of gross salary. Employers pay about 23.59% state social insurance on gross salary.

Employer contribution*Rate
State social insurance (employer)23.59%
Employee social insurance10.5%

Passed through at cost

These statutory costs are paid at cost on top of TGTC's flat $499/mo fee, so you always see the real employer cost, not a marked-up percentage.

Employee-side taxes

Employees pay their own income tax and social-security share, withheld at source. Under an EOR, TGTC runs that payroll withholding for you.

Types of leave

Statutory leave in Latvia

Annual leave

  • 4 weeks (20 working days) minimum

Maternity & parental leave

  • Maternity 112 days (+14 for complications/twins)
  • Paternity 10 days; child-care leave up to 1.5 yrs

Sick leave

  • Employer pays days 2-10 (75%-80%)*
  • State benefit from day 11

Other leave

  • Paternity 10 days
Employment termination

Ending employment in Latvia

Notice

  • Usually 1 month; 3 days in probation

Severance

  • 1-4 months' pay by length of service

Probation

  • Up to 3 months (6 under CBA)

Contractor risk

  • Misclassification scrutinised by tax authority (VID)

*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.

Hire in Latvia without setting up an entity

TGTC employs your hire in Latvia on a compliant local contract, runs payroll and benefits, and passes statutory costs through at cost. One invoice, flat $499 per month.

Get a Latvia quote