Hire employees in Latvia. No entity needed.
Usually, to hire in Latvia, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Latvia also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Latvia quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
All the necessary benefits for Latvia
built right in
Deel allows you to provide localized benefits for employees in Latvia within minutes. All in one manageable online dashboard.
- Public Health Care
- Private Healthcare - Unisure (optional)
Our quickstart guide to hiring in Latvia
Navigate the tabs below to learn everything you need to know about hiring an employee in Latvia
Minimum Wage Requirements
Individual Income Tax
The individual income tax ranges from 20% to 31.4%. Income tax is calculated according to progressive rates.
|Gross Annual Income (EUR)||Tax Rate (%)|
|Up to EUR 20,004||20%|
|EUR 20,004 - EUR 62,800||23%|
|Above EUR 62,800||31.4%|
- Employer Social Security Contribution - 23.5%
- Business risk fee per employee - €0.36
Overtime Pay & Maximum Hours
Overtime cannot exceed 48 hours per month and 200 hours per year. For additional hours, employees are paid a minimum supplement of 100% of the hourly or daily wage rate.
Standard working hours are eight hours per day, 40 hours per week. The standard workweek is from Monday to Friday.
Pregnant employees are entitled to 112 days of paid leave. 56 days must be taken before the child's birth. 56 days must be taken after the child's birth. The employee will receive 80% of their average salary.
The average salary is calculated for the 12-month period, ending two months before the leave is taken. The State Social Security Agency will be responsible for this pay.
The employee can extend leave through parental leave.
The employee can extend leave using parental leave.
Parental leave is paid at different rates based on the following:
- Leave taken until the child is one year old is paid at 60% of the average salary
- Leave taken by the time the child is aged 1.5 years will be calculated in the amount of 43.75% of the average insurance contribution salary of the beneficiary
Compliant terminations include:
- Voluntarily by the employee
- By mutual agreement
- Unilaterally by the employer (causes established by Labor Law on section 101)
Severance for Employees
- Employee lacks adequate occupational competence for performance of work
- Employee is unable to perform the contracted work due to his or her state of health and such state is certified with a doctor's opinion
- Employee who previously performed the respective work has been reinstated at work
- Number of employees is being reduced
- Employer is being liquidated
- Employee does not perform work due to temporary incapacity
Severance pay will depend on the length of employment:
- Less than five years of employment - one month of average earnings
- Between 5 to 10 years of employment - two months of average earnings
- Between 10 to 20 years of employment - three months of average earnings
- Over 20 years of employment - four months of average earnings
Paid Time Off
Latvia celebrates 14 national holidays. If the public falls on the weekend, the next working day is free.
- New Year’s Day
- Good Friday
- Easter Sunday
- Easter Monday
- Labour Day
- Declaration of Independence Day
- Easter Sunday
- Līgo day (Midsummer eve)
- Jāņu day (Midsummer eve)
- National Day
- Christmas Eve
- Christmas Day
- Christmas second Day
- New Year’s Eve
Note: the length of the working day is reduced by one hour before the public holiday.
Employment Contract Details
A contract must include:
- Employee details (Name, identity number, residential address)
- Employer details (Name, identity number, legal address)
- Start date
- Duration of the contract
- Place of work
- Position according to the Classification of Occupations
- Probation period
- The amount and the date of salary payment
- Daily and weekly working hours
- Duration of the paid annual leave
- Term of termination
Probation periods help an employer and the employee ensure they're a hiring match, allowing a company to quickly decide if it's a fit or the employee to see if the job aligns with their career goals.
Hiring in Latvia, hassle-free
With Deel, your business can easily hire employees in Latvia. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.
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*of employee salary
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