* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Euro (€)



Employment Cost

20.77% - 23.59%

Annual Leave

20 days

In-demand Specialties*
It & Technology, Engineering, Healthcare

The Ultimate Guide to Hiring Employees in Latvia's

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Latvia's

Employing in Latvia's requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Latvia's with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Latvia's quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Latvia has a well-educated and skilled workforce, particularly in fields like IT, engineering, and manufacturing. The country's education system emphasizes technology and sciences, providing a pool of qualified professionals.

Latvia's strategic location in the Baltic region makes it a convenient gateway to both Western and Eastern European markets. It offers access to the European Union and the Commonwealth of Independent States (CIS), facilitating international trade.

While Latvia is a member of the Eurozone, making it part of the euro currency, the overall cost of living and labor costs can be more competitive compared to Western European countries. This can be attractive for businesses seeking cost-effective solutions.

Many Latvians are multilingual, with a proficiency in English, Russian, and other languages. This linguistic diversity can be advantageous for businesses with international operations.


Fundamental Aspects of Employment in Latvia's

In Latvia, employment contracts must be in writing before work begins, typically in Latvian. If the employee does not understand Latvian, the terms must be provided in a mutually understood language. Key contract details to include are:

  • Company and employee identification
  • Commencement date (duration for temporary contracts)
  • Job description, duties, and responsibilities
  • Basic salary, additional compensation, or benefits
  • Pay date
  • Work hours
  • Annual holiday entitlement
  • Notice periods for termination
  • Probationary period

Probationary Period in Latvia's

Probation usually lasts up to three months but can be extended to six months by collective agreements without compromising employee rights.

Working hours in Latvia's

In Latvia, the standard workweek is 40 hours over 5 days (Monday to Friday), with 8 hours per day. Employees must have at least 12 hours of uninterrupted rest between workdays, ensuring a weekly rest period of 42 hours.

Overtime in Latvia's

In Latvia, any work beyond standard hours or on public holidays requires mutual agreement between employees and employers before commencement. Overtime compensation is set at 200% of the regular salary rate, with a maximum of 8 additional hours and an annual cap of 200 hours.

Navigating Key Aspects of Payroll in Latvia's

Latvia's has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in Latvia's

1 January - 31 December is the 12-month accounting period that businesses in Latvia's use for financial and tax reporting purposes.

Payroll Cycle in Latvia's

The payroll cycle in Latvia's is usually Biweekly/Monthly, with employees being paid as stipulated in employment agreement.
3.9 EUR p/h

Minimum Wage in Latvia's

The minimum wage for employees in Latvia's is typically 3.9 EUR per hour, amounting to ~620 EUR per month for a typical 40 hour work week.

Minimum wages and salaries in Latvia's

The minimum wage in Latvia is set at 3.9 EUR an hour.

Bonus Payments in Latvia's

There is no legal obligation to offer a 13th-month salary.

Comprehensive Overview of Employment Taxes in Latvia's

Understanding the tax obligations for both employers and employees is crucial when operating in Latvia's's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Latvia's.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 20.77% - 23.59% on top of the employee salary in Latvia's.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Latvia's, the typical estimation for employee payroll contributions cost is around 9.25% - 10.5%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

The individual income tax in Latvia ranges from 20% to 31%. Income tax is calculated based on progressive rates.

Tax Rate Income Bracket

Pension in Latvia's

The mandatory social security contributions covers state pension insurance.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Latvia's tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

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Understanding the Protocols for Termination of Employment in Latvia's

When it comes to terminating employment in Latvia's, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

In Latvia, terminating employment involves various considerations. Employers cannot terminate contracts at will post-probation and must provide justifiable reasons. Acceptable grounds for termination include:

  • Voluntary resignation
  • Mutual agreement
  • Unilateral termination by the employer based on causes specified in Section 101 of the Labor Law

Notice Period

In Latvia, the statutory notice period is one month. During the probation period, only a written notice of three days is required, which can be further shortened by mutual agreement in the employment contract.

Severance Pay

In Latvia, statutory severance pay is based on the length of service:

  • Up to 5 years: 1 month's pay
  • Between 5 and 10 years: 2 months' pay
  • 10 to 20 years: 3 months' pay
  • Over 20 years: 4 months' pay

Annual Leave Entitlements and Company Policies in Latvia's

The annual leave entitlement in Latvia's is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Latvia's

Latvia observes 15-16 national holidays. If a holiday falls on a weekend, the following working day is granted as a day off.

Holiday Date

Paid Time Off in Latvia's

Maternity Leave in Latvia's

Paternity Leave in Latvia's

Sick Leave in Latvia's

Parental Leave In Latvia's

Latvia's's Benefits Built Into Playroll

Competitive benefits package in Latvia's

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Latvia's's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Latvia's

Make your benefits package in Latvia's a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

Statutory benefits for employment in Latvia's

Latvian employees are entitled to the following benefits:

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

Playroll allows you to provide localized benefits for employees in Latvia's within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Latvia's create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Latvia's

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Latvia's.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

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Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

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