Hiring in Latvia: Employer Costs, Labor Laws and How to Hire
Latvian employers pay 23.59% social contributions on top of gross pay, and the employee pays 10.5%, for 34.09% in total. On a €2,500 monthly salary, the employer's cost is €37,077 a year.
Hiring someone in Latvia? This guide covers what an employee costs, social contributions, the labor rules that apply, income tax, work visas and the ways a company outside Latvia can employ someone there.
Employer and employee social contributions in Latvia, 2026
Key employment rules in Latvia
How to hire in Latvia
Hiring in Latvia comes down to two decisions: who you hire, and how you employ them.
- Find the person. Write the role, set the salary against Latvian pay levels, then source and interview candidates. You can run the search yourself with a job post, or use a placement service that delivers a shortlist.
- Choose how to employ them. A Latvian entity running payroll, an employer of record or a contractor agreement. Each option is explained below.
- Make the offer. The contract has to meet the rules in the employment table above. Pay in Latvia is usually quoted as a gross monthly salary in euros.
Your options for employing someone in Latvia
- Latvian entity: you register a company in Latvia, run payroll, withhold the employee's share and pay the employer's social contributions yourself. It suits a team of several people in Latvia.
- Employer of record (EOR): a third-party provider becomes the legal employer and runs Latvian payroll for a monthly fee per employee. Your company directs the work.
- Contractor: the person invoices you as a self-employed worker. The relationship has to be genuinely independent, or it can count as employment.
Euro Remote Talent does not employ people on your behalf. We handle the placement: we find and shortlist the candidate, and you employ them through the route that fits.
What an employee costs in Latvia
Take a salary of €2,500 gross a month in 2026, which is €30,000 a year.
- Employer social contributions: €30,000 x 23.59% = €7,077
The employer's cost is €37,077 a year. The employee pays 10.5%, or €3,150, plus income tax, all withheld by the employer from gross pay. Contributions stop at a base of €105,300 a year. Pay above that amount is subject to solidarity tax instead.
Minimum wage and pay
The minimum wage is €780 gross a month for normal working time in 2026. The minimum hourly rate is the monthly minimum divided by the normal working hours in that month. The average gross wage was €1,815 a month in 2025, and the average net wage €1,346, according to the Central Statistical Bureau (CSB). See our Latvia minimum wage and average salary in Latvia pages.
Income tax in Latvia
The employer withholds income tax from each salary payment at 25.5%, after the monthly non-taxable minimum. In the annual return, income above the contribution cap is taxed at 33%, and total income above €200,000 carries an additional 3%. The 2026 rules:
| Income tax, 2026 | Rate |
|---|---|
| Salary, withheld by the employer each month | 25.5% |
| Annual income up to €105,300 | 25.5% |
| Annual income above €105,300 | 33% |
| Additional rate on total annual income above €200,000, paid in the annual return | 3% |
| Monthly non-taxable minimum, 2026 | €550 |
| Monthly non-taxable minimum from 2027 | €570 |
Work visas
- EU Blue Card: a residence permit for highly qualified workers from outside the EU with a higher education qualification. It is issued for 2 years, and pay must meet the threshold the Cabinet of Ministers sets. Immigration Law.
- Other employment permits: under the new Immigration Law in force since 15 September 2026, temporary residence permits linked to employment are issued for up to 1 year, unless the employer is a micro-enterprise tax payer.
How Euro Remote Talent can help
We do placement. We source, screen and interview remote professionals across Europe, then deliver a shortlist of 3 candidates within 21 days for a flat $6,500, or your deposit back. Prefer to run the search yourself? Post a job for $299 and reach candidates who want to work remotely.
See how placement works, post a job or book a 30-minute call. Browse remote jobs in Latvia to see who is hiring there now.
This is general information, not legal or tax advice. Rules change and collective agreements can set different terms. Confirm with a local accountant or lawyer before you hire.
Frequently asked questions
How much does an employer pay in social contributions in Latvia?
23.59% of gross pay in 2026, on top of salary. The employee pays 10.5%, which the employer withholds from gross pay, for 34.09% in total.
What does a €2,500 monthly salary cost a Latvian employer?
€30,000 a year plus €7,077 in employer social contributions, for €37,077 in total.
How long is the notice period in Latvia?
An employee gives 1 month in writing. An employer gives immediate notice, 10 days or 1 month depending on the ground, and 1 month for a staff reduction, under Labor Law section 103.
How much paid leave do employees get in Latvia?
At least 4 calendar weeks a year, not counting public holidays, under Labor Law section 149.
Can a company outside Latvia hire someone there without a local entity?
Yes. The usual routes are an employer of record, a third-party provider that employs the person for you, or a genuine contractor agreement. Euro Remote Talent handles the placement: we find, screen and shortlist the person, and you choose the route.
Sources
- likumi.lv, Law on State Social Insurance, sections 14 and 18. Checked 3 Nov 2026.
- likumi.lv, Cabinet Regulation No. 786, contribution rate by insurance type. Checked 3 Nov 2026.
- VID, Minimum state social insurance contributions. Checked 3 Nov 2026.
- likumi.lv, Law on Personal Income Tax, sections 12, 15 and 15.1, transitional point 197. Checked 3 Nov 2026.
- VID, Payroll tax guide (non-taxable minimum 2026). Checked 3 Nov 2026.
- likumi.lv, Labor Law. Checked 3 Nov 2026.
- likumi.lv, Cabinet Regulation No. 656 on the minimum monthly wage. Checked 3 Nov 2026.
- CSB, Average monthly and median wages, DSV010. Checked 3 Nov 2026.
- likumi.lv, Immigration Law. Checked 3 Nov 2026.
