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hire in Latvia

Latvia EOR & PEO

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES Latvian / English

PAYROLL TAX 20.77% – 23.59%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours

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Simple, compliant hiring with Horizons EOR

Hire in Latvia

Horizons ensures day-to-day guidance to help your business navigate Latvia labor laws and regulations. Horizons also ensures your Latvian payroll is processed on time, and that taxes are withheld as required.

As the Latvia Employer of Record, Horizons is responsible for employee income tax withholding, payment of payroll taxes to state authorities, and submission of tax returns to the Latvia Tax Office. 

Partnering with our Latvia EOR is the quickest and most cost-effective way to enter the Latvia market.

Note, a Latvia Employer of Record is also known as a Latvia Professional Employer Organization (PEO).

Facts & Stats

EOR Platform

Hire in Latvia, and pay employees through our platform or app.

EOR Cost

Our Latvia EOR solution is the most affordable on the market.

Time-to-hire

Fast onboarding in Latvia, hire in as little as 24 hours.

Contracts

We draft labor contracts compliant with Latvian labor law.

Local Benefits

We administer all mandatory benefits and contributions in Latvia.

180+ Countries

It doesn’t stop with Latvia — we are an international EOR

stay compliant with Latvia labor laws

Employment Laws

Employment contracts in Latvia

Employers in Latvia are legally required to provide all employees with formal contracts of employment. All contracts need to include any relevant details of the agreement, such as compensation, entitlement and benefits, and so on, and should be written in Latvian with all references to money in the Euro currency.

Most employment agreements are indefinite-term, with fixed-term contracts only possible in specific situations.

Fixed-term
Probationary period3 months
Termination notice period30 days
Severance1 – 4 months’ salary minimum, depending on years of service
Indefinite
Probationary period3 months
Termination notice period30 days
Severance1 – 4 months’ salary minimum, depending on years of service

Working hours in Latvia

The standard working week in Latvia is 40 hours, composed of five eight-hour days.

Hire compliantly in Latvia without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

Public holidays in Latvia

Several public holidays are celebrated annually in Latvia. Most workers are given the day off on the following days:

Latvia has a range of national public holidays that are celebrated annually. In 2024 these holidays are:
Date Holiday name
1 Jan, 2024 New Year’s Day
29 Mar, 2024 Good Friday
31 Mar, 2024 Easter Sunday
1 Apr, 2024 Easter Monday
1 May, 2024 Labour Day/May Day, Constituent Assembly Convocation Day
6 May, 2024 Independence Restoration Day
12 May, 2024 Mothers’ Day
19 May, 2024 Whitsunday
23 Jun, 2024 Midsummer Eve
24 Jun, 2024 Midsummer Day
18 Nov, 2024 Republic of Latvia Proclamation Day
24 Dec, 2024 Christmas Eve
25 Dec, 2024 Christmas Day
26 Dec, 2024 Second Day of Christmas
31 Dec, 2024 New Year’s Eve

Vacation leave in Latvia

Workers in Latvia are entitled to four weeks (20 days) of paid vacation leave at a minimum. Some employers choose to offer more.

Latvia healthcare system

Sick leave in Latvia

Employers in Latvia usually provide ten days of paid sick leave to employees, with the second and third days compensated at 75% of normal pay and the remaining days compensated at 80%. Absences beyond ten days are covered by the government.

Parental leave in Latvia

Female workers in Latvia are entitled to paid maternity leave of 56 days before giving birth and 56 days after (totaling 122 days). The government pays for this leave, so employers are not responsible. Male employees can take ten days of paternal leave before the child is two months old.

Additional parental leave of up to 18 months may also be taken before the child turns eight.

Taxation in Latvia

Employers in Latvia generally need to withhold the income tax of employees. The income tax rate in Latvia is between 20% to 31.4% depending on income level.

Employers and employees are required to contribute to Latvia’s social security scheme, paying 23.59% and 10.5% of salaries respectively.

Health coverage in Latvia

Latvia has nationalized healthcare, so employers do not need to provide private medical insurance to workers. However, some companies do choose to offer it as an employment benefit.

Terminations and severance in Latvia

Unless in a probation period, employees in Latvia are generally entitled to at least ten days of notice of termination and may receive up to one month.

Employees are also usually entitled to severance pay upon termination, with the amount varying depending on length of service. Usually:

  • Up to five years with an employer = One month of salary
  • Between five and ten years with an employer = Two months of salary
  • Between ten and 20 years with an employer = Three months of salary
  • More than 20 years with an employer = Four months of salary
hassle-free Latvia compensation & benefits

Compensation & Benefits

Compensation laws in Latvia

The minimum wage in Latvia in 2024 is €700 per month for full-time workers.

Minimum Wage Country Comparison Chart (Per month in USD)
Switzerland (Geneva) $4,000
Italy $2,255
Australia $1996
Algeria $156
Uzbekistan $22
Benefit management in Latvia

Building a benefits system for your Latvian workforce can be difficult and complicated to navigate if you are not familiar with the country, its customs, and its employment laws. To set it up independently, it can take several weeks and potentially lead to unexpected delays.

Horizons can simplify your Latvia benefits management. Our Latvia experts can handle everything for you, helping you focus on a successful expansion operation.

Hire in Latvia in 24h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

Generally speaking, the terms “Latvia PEO” and “Latvia EOR” are used interchangeably.

An EOR in Latvia can feasibly hire both local and foreign nationals to work in Latvia.

However, the ability of Horizons to sponsor your foreign national employee in Latvia may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

In most cases, Horizons’ Latvia EOR can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Latvia.

It is possible to get a work visa in Latvia. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Latvia are limited, however—get started today to secure your employees’ visa spot.

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