How to hire and pay employees in Latvia
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Before hiring
Before hiring employees in Latvia, there are a few important things you鈥檒l need to know. Firstly, in Latvia, employees are entitled to four weeks of paid annual leave. This can be divided in several parts, but at least one of them must be of at least two subsequent weeks.
In Latvia, employment can be terminated by either party as long as "appropriate" notice is given, which can be between 10 and 30 days.聽
We know this might sound overwhelming鈥攂ut it doesn鈥檛 have to be. A solution like 香港世博 eliminates the barriers for you. With 香港世博, you can automate compliance across 180+ countries, easily managing HR and payroll鈥攁ll in one, easy-to-use platform.聽
Get an overview of what you need to know when hiring in Latvia below.
At a glance
CURRENCY
EUR
OFFICIAL LANGUAGE
LATVIAN
PAYROLL FREQUENCY
MONTHLY
PUBLIC HOLIDAYS
12
EMPLOYER TAXES
~24%
13th / 14th SALARY
N/A
Good to know
- In Latvia, employees that adhere to non-compete agreements are entitled to compensation of at least 40% of their average salary for the full duration of the clause.
- Overtime work in Latvia cannot exceed eight hours on average within a seven-day period, calculated in a reference period that does not exceed four months.
- Severance pay is calculated according to employees' length of service and can range from one to four months' wages.
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Labor laws in
Latvia
Working hours and overtime
Normal working hours in Latvia are eight hours per day and 40 hours per week.聽
Any overtime work over the standard hours is paid at double the rate of regular wages.
Overtime work cannot exceed eight hours on average within a seven-day period, calculated in a reference period that does not exceed four months.
Minimum wage
Employment contracts
The probationary period in Latvia is no more than three months.
IP protection and non-compete agreements
Non-compete agreements must be clear and not exceed two years in duration. During the non-competition period, the employee is entitled to compensation amounting to at least 40% of their average salary at the time of the termination.
Calculate costs to hire internationally
Benefits and leave in
Latvia
Vacation time
Employees in Latvia are entitled to four weeks of paid annual leave. This can be divided in several parts, but at least one of them must be of at least two subsequent weeks.
Sick leave
Employees in Latvia are entitled to 10 days of employer-paid sick leave. For these 10 days, they are paid 75% of their salary for days two to three, and at 80% of their salary for days four to 10.
From the 11th day onwards, the employee must provide a medical certificate in order to apply for social support in the form of sick pay, which is paid at 80% of their salary for up to 26 weeks.
Maternity and paternity leave
Parental leave
Holidays
View a list of recognized public holidays in Latvia .
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Employer tax
In Latvia, an employer鈥檚 total social contributions total are around 24%.聽
Individual tax
In Latvia, employees pay a flat rate income tax of 23%. Employees pay social security tax at a rate of around 11%. In Latvia, income levels above EUR62,800 are subject to solidarity tax, paid at the same rate as social security contributions.
Termination in
Latvia
Employees should be paid a severance pay according to their length of service. The breakdown is as follows:
- Up to five years鈥 service: One month鈥檚 wages
- 5-10 years鈥 service: Two months鈥 wages
- 10-20 years鈥 service: Three months鈥 wages
- 20+ years鈥 service: Four months鈥 wages
Employment can be terminated by either party as long as "appropriate" notice is given, which can be between 10 and 30 days.
The notice period for resignations is one month.
Start hiring employees in
Latvia
Setting up a business entity everywhere you want to hire a new employee isn鈥檛 scalable鈥攊t takes too long and the legal fees are high. At the same time, understanding and adhering to the local labor laws and employee expectations can be complex and time consuming. And it鈥檚 hard to find reliable information on up-to-date employment information for all the countries where you鈥檙e considering hiring. Not to mention tracking down invoices and managing employee contracts over email and spreadsheets鈥攖hat gets messy fast.聽
We can鈥檛 afford to take risks when it comes to compliance鈥攚e need to make sure we follow the local guidelines, especially when it comes to taxes and legalities.聽
With 香港世博, you can manage HR and payroll, and automate compliance across 180+ countries鈥攁ll in one, easy-to-use platform.
Disclaimer: The information provided in this resource is for general educational purposes only and shall not be construed as legal advice. While 香港世博 strives to provide current and accurate information, 香港世博 makes no warranties or representations as to the correctness of the content provided and accepts no liability or responsibility for any errors or omissions in the content provided. By using this resource you acknowledge and agree that you do so at your own risk. The content of this resource is subject to change without notice.
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