Country Hiring Guide

Discover & Hire Top Talents in Latvia

Everything you need to know about the country's employment laws, culture, and workforce insights.

Capital

Riga UTC+2 to UTC+3

Economic Hubs

Riga, Daugavpils

Currency

Euro (EUR)

Languages

Latvian, Russian, English

Payroll

monthly or semi monthly

Employer Tax

23.59%

Workforce Insights

Talent Landscape in Latvia

Latvia has an estimated labor force of about 947,000 (2025), with talent demand concentrated in logistics, shared services, information technology, manufacturing and financial services. International employers are most likely to find relevant candidate pools for Software & BPO, Logistics, and Accounting & Finance. The market is compact, so targeted hiring and regional talent mobility are important for scarce specialist roles.

Major Economic Hubs

Riga, Daugavpils

Skills In-Demand

Software & BPO

Working Culture

Reserved Communication and Reliable Process

Latvian workplaces often value calm, concise communication and careful planning. Colleagues may take time to build trust and may not use extensive small talk.

Respect for Expertise and Defined Roles

Credibility comes from competence and consistent delivery. Employees generally appreciate clear responsibilities without unnecessary micromanagement.

Inclusive Coordination Across Generations

Latvian teams may include employees with different educational and professional backgrounds. Clear written decisions, respectful discussion and consistent processes help maintain inclusion without overcomplicating communication.

Average Salary

Job Title	Avg Monthly Salary (EUR)
Accounting & Finance
Administrative Executive, Junior (1-3 years)	1,350 EUR	S$1,836
Administrative Executive, Mid (3-5 years)	1,850 EUR	S$2,516
Book Keeper, Junior (1-3 years)	1,250 EUR	S$1,700
Book Keeper, Mid (3-5 years)	1,650 EUR	S$2,244
Finance Executive, Junior (1-3 years)	1,600 EUR	S$2,176
Finance Executive, Mid (3-5 years)	2,100 EUR	S$2,856
Creatives
Graphic Designer, Junior (1-3 years)	1,600 EUR	S$2,176
Graphic Designer, Mid (3-5 years)	2,300 EUR	S$3,128
UI/UX Designer, Junior (1-3 years)	1,650 EUR	S$2,244
UI/UX Designer, Mid (3-5 years)	2,900 EUR	S$3,944
Data Analytics
Data Analyst, Junior (1-3 years)	2,300 EUR	S$3,128
Data Analyst, Mid (3-5 years)	3,000 EUR	S$4,080
Data Engineering
Data Engineer, Junior (1-3 years)	2,300 EUR	S$3,128
Data Engineer, Mid (3-5 years)	3,700 EUR	S$5,032
AI & Machine Learning
Data Scientist, Junior (1-3 years)	2,300 EUR	S$3,128
Data Scientist, Mid (3-5 years)	3,100 EUR	S$4,216
Machine Learning Engineer, Junior (1-3 years)	1,950 EUR	S$2,652
Machine Learning Engineer, Mid (3-5 years)	2,900 EUR	S$3,944
Digital Marketing
Content Marketing, Junior (1-3 years)	1,850 EUR	S$2,516
Content Marketing, Mid (3-5 years)	2,750 EUR	S$3,740
Digital Marketing, Junior (1-3 years)	1,850 EUR	S$2,516
Digital Marketing, Mid (3-5 years)	2,750 EUR	S$3,740
Growth Marketing, Junior (1-3 years)	1,950 EUR	S$2,652
Growth Marketing, Mid (3-5 years)	2,900 EUR	S$3,944
Software Development
Backend Developer, Junior (1-3 years)	2,400 EUR	S$3,264
Backend Developer, Mid (3-5 years)	3,500 EUR	S$4,760

Job Title	Avg Monthly Salary (EUR)
DevOps
DevOps Engineer, Junior (1-3 years)	2,300 EUR	S$3,128
DevOps Engineer, Mid (3-5 years)	3,100 EUR	S$4,216
Site Reliability Engineer, Junior (1-3 years)	2,300 EUR	S$3,128
Site Reliability Engineer, Mid (3-5 years)	3,250 EUR	S$4,420
Customer Support
Customer Service Officer, Junior (1-3 years)	1,150 EUR	S$1,564
Customer Service Officer, Mid (3-5 years)	1,500 EUR	S$2,040
Customer Experience
Customer Success Manager, Junior (1-3 years)	1,650 EUR	S$2,244
Customer Success Manager, Mid (3-5 years)	2,400 EUR	S$3,264
HR Operations
HR Executive, Junior (1-3 years)	1,500 EUR	S$2,040
HR Executive, Mid (3-5 years)	2,000 EUR	S$2,720
FinTech
Blockchain Developer, Junior (1-3 years)	1,850 EUR	S$2,516
Blockchain Developer, Mid (3-5 years)	2,750 EUR	S$3,740
Payments Engineer, Junior (1-3 years)	1,850 EUR	S$2,516
Payments Engineer, Mid (3-5 years)	2,450 EUR	S$3,332
Cloud Computing
Cloud Engineer, Junior (1-3 years)	2,100 EUR	S$2,856
Cloud Engineer, Mid (3-5 years)	3,100 EUR	S$4,216

Hiring Guide

Hiring Guide in Latvia

This guide highlights the fundamental rules employers must know to hire compliantly, covering pay structures, leave policies, termination procedures, and compliance requirements.

For details, browse the topics through the tabs below.

Payroll in Latvia

Payroll Cycle

Salary is commonly paid on the last day of the month or by the 10th day of the following month.

Minimum Wage

A statutory national monthly minimum wage applies.

Overtime Pay

- Generally 8 hours per day and 40 hours per week. - Average working time including overtime is subject to EU limits.

- Overtime Pay = Hourly Rate × 2.00 × Overtime Hours, unless lawful paid compensatory rest applies.

Bonus

13th Month

Latvia’s Labour Law does not require a 13th or 14th month salary for private sector employees. An annual or Christmas bonus is payable only when the employer has created a binding entitlement through the employment contract, a collective agreement, an internal remuneration rule, or an established practice.

No statutory formula applies. A contractual bonus may be a fixed amount, a percentage of salary, or a performance-based amount according to the governing document. Latvian law does not default the payment to 1 month of salary.

There is no statutory class of eligible recipients because Latvia has no mandatory private sector 13th month payment. An employee is eligible only if their employment contract, applicable collective agreement, remuneration policy, or consistent employer practice grants the payment. The same source must determine the qualifying period, performance conditions, payment date, proration for part-year service, and whether an employee who resigns or is dismissed before the payment date remains entitled. Where the payment is guaranteed or earned under objective conditions, it should be treated as remuneration rather than withheld as a purely discretionary gift. Paid annual leave under the Labour Law is a separate statutory entitlement and is not a 13th salary.

Employees Benefits

Types of Benefit	Details
Mandatory
State social insurance contributions	Employers in Latvia must apply the contribution and registration rules for State social insurance contributions. Payroll should separately identify the employer funded amount and any employee deduction, use the statutory contribution wage or ceiling, and retain evidence of enrolment. The exact branches covered are those listed in the scheme, which can include retirement, health, unemployment or employment injury protection.
Work injury protection under State social insurance contributions	Latvia requires employers to protect employees against accidents and occupational disease through the work injury component of State social insurance contributions or a legally approved policy. The obligation includes premium or levy payment, accident reporting and cooperation with medical or disability assessments. Coverage is not replaced by a private medical plan.
Statutory termination or end of service entitlement in Latvia	Latvia does not treat every separation identically. The final settlement must be calculated using the employee’s contract type, completed service and reason for termination, including statutory notice, accrued leave and any legally required severance or end of service award. Collective agreements may provide a more favourable formula.
Public healthcare or mandatory medical coverage in Latvia	Health protection in Latvia is delivered through the medical or sickness branch of State social insurance contributions. Employers must register employees who meet the scheme’s coverage tests and remit the required payroll contribution on the prescribed wage base. The programme commonly provides medical treatment and cash sickness or maternity benefits, while eligibility for dependants, expatriates and higher earners follows the local institution’s rules.
Optional
Performance or profit sharing bonus in Latvia	A performance or profit sharing bonus in Latvia is optional unless promised by contract, collective agreement or an established plan. The rules should specify the performance period, measurable targets, proration for joiners and leavers, and treatment during protected leave. Payroll must apply local income tax and social contribution rules to the payment.
Housing, relocation and remote work support in Latvia	Housing, relocation and remote work support in Latvia is normally contractual rather than statutory. The policy should identify covered costs, taxable benefit treatment, repayment conditions for early departure and whether the support is temporary or continues throughout the assignment.
Meal, commuting and business travel support in Latvia	Meal, commuting and business travel support in Latvia should be split between fixed cash allowances and reimbursements supported by receipts. That distinction determines whether the amount is taxable salary, exempt expense repayment or part of the contribution wage. The policy should state limits, eligible journeys and the treatment of remote work.
Supplementary private medical insurance in Latvia	Private medical insurance in Latvia should be designed around the gaps left by State social insurance contributions. Employers commonly add faster outpatient access, private hospital treatment, dental, optical, mental health and dependant cover. The policy remains optional unless a visa, emirate, collective agreement or sector rule makes insurance compulsory, and any taxable benefit treatment should be processed through payroll.

Taxes

Country Tax

Latvia's country tax is known as Value-Added Tax (VAT) 21%

Individual Tax

Tax Component	Contribution Rate (%)	Details
Income Tax Structure
Resident Tax Rates	Up to 36%	Latvia applies Up to 36% to taxable employment income. The employee’s final liability depends on taxable pay, permitted deductions or credits, and any local surtaxes stated in the cited source.
Non-Resident Employment Income	See local nonresident rules	Nonresident individuals are generally taxed only on local source employment income. The applicable rate can differ from resident rates and depends on source, presence, payroll withholding, and treaty relief. Confirm the cited country summary before payroll implementation.
Taxable Income Adjustments
Main Deductions and Allowances	See details	Contributions to private pension funds and to life insurance schemes with the accumulation of contributions. However, the deduction for the sum of both types of contributions is limited to 10% of annual taxable income, but not more than EUR4,000 per year. .
Taxable & Exempt Components
Bonuses and Cash Allowances	Generally taxable at marginal employment rate	In Latvia, cash salary, commissions, performance bonuses, and recurring cash allowances are generally taxable employment income and subject to payroll withholding at the applicable marginal rate unless a specific statutory exemption applies.
Benefits in Kind	Taxable value at marginal rate where applicable	In Latvia, employer provided housing, vehicles, meals, insurance, equity, and other noncash benefits may be taxable under local valuation rules. Business reimbursements and de minimis exemptions require local support.

More Countries

Explore hiring in other countries

Indonesia

CapitalJakarta

Employers Tax10.24% – 11.74%

Employers Tax13.95% – 14.95%

Employers Tax7.75% – 17.25%

Australia

CapitalCanberra

Employers Tax12.00% + variable

Bahrain

CapitalManama

Employers Tax7.20% – 18.00%

Bangladesh

CapitalDhaka

Employers TaxVariable

Brunei

CapitalBandar Seri Begawan

Employers Tax8.50% – 10.50% or BND 57.50

Employers Tax5.00% + variable

India

CapitalNew Delhi

Employers Tax15.75% + variable

Israel

CapitalJerusalem

Employers Tax17.01% – 20.10%

Japan

CapitalTokyo

Employers Tax16.46% – 25.21%

Employers Tax17.50% – 22.50%

Kuwait

CapitalKuwait City

Employers Tax0.00% – 11.50%

Employers Tax12.50% – 14.50%

Nepal

CapitalKathmandu

Employers Tax20.00% or scheme specific

New Zealand

CapitalWellington

Employers Tax3.50% + variable

Employers Tax11.00% + variable

Employers Tax0.00% – 14.00%

Employers Tax10.53% – 29.12%

Sri Lanka

CapitalSri Jayawardenepura Kotte

Employers Tax15.00%

Thailand

CapitalBangkok

Employers Tax5.20% – 6.00%

Employers Tax12.00% – 25.00%

Employers Tax16.40% – 19.40%

Botswana

CapitalGaborone

Employers TaxVariable

Employers Tax13.95% – 17.20%

Chad

CapitalN'Djamena

Employers Tax16.50%

Democratic Republic of the Congo

CapitalKinshasa

Employers Tax14.20% – 16.20%

Employers Tax5.00% + variable

Ivory Coast (Côte d’Ivoire)

CapitalYamoussoukro

Employers Tax15.45% – 18.45%

Kenya

CapitalNairobi

Employers Tax7.50% + variable

Lesotho

CapitalMaseru

Employers Tax1.00% + variable

Employers Tax10.00% + variable

Mali

CapitalBamako

Employers Tax17.90% – 20.90%

Employers Tax0.90% + variable

Employers Tax19.40% – 23.40%

Employers Tax2.00% + variable

Employers TaxAt least 22.50%

Employers Tax6.50% + variable

Zimbabwe

CapitalHarare

Employers Tax5.50% + variable

Employers Tax25.00% + variable

Bosnia and Herzegovina

CapitalSarajevo

Employers Tax0.00% – 6.00%

Bulgaria

CapitalSofia

Employers Tax18.92% – 19.62%

Employers Tax15.40% + variable

Employers TaxFixed amounts + variable

Employers Tax19.32% – 20.24% + variable

France

CapitalParis

Employers Tax25.00% – 45.00%

Employers Tax21.20% + variable

Employers TaxAt least 17.95%

Ireland

CapitalDublin

Employers Tax9.00% – 11.25%

Employers Tax7.20% + variable

Employers TaxAt least 12.57%

Employers TaxAt least 6.10% + variable

Employers Tax2.00% – 16.10% + variable

Poland

CapitalWarsaw

Employers Tax20.98% – 23.64%

Employers Tax2.25% – 10.25%

Employers Tax30.65% + variable

Employers Tax7.40% – 9.90% + variable

Ukraine

CapitalKyiv

Employers Tax8.41% – 22.00%

United Kingdom

CapitalLondon

Employers Tax18.00% – 18.50% + 15.00% on taxable benefits

Argentina

CapitalBuenos Aires

Employers Tax24.00% – 26.40% + variable

Employers Tax31.70% – 39.30%

Canada

CapitalOttawa

Employers Tax8.12% – 12.23% + variable

Chile

CapitalSantiago

Employers Tax5.87% – 6.47% + variable

Colombia

CapitalBogotá

Employers Tax30.02% – 36.46%

Costa Rica

CapitalSan José

Employers Tax26.83% + variable

Employers Tax11.15% + variable

CapitalGuatemala City

Employers Tax17.25% – 43.48% + 20.40% of UMA

Nicaragua

CapitalManagua

Employers Tax23.50% – 24.50%

Panama

CapitalPanama City

Employers Tax14.31% – 19.42%

Employers Tax9.75% + variable

Suriname

CapitalParamaribo

Employers Tax15.15% + variable

Trinidad and Tobago

CapitalPort of Spain

Employers TaxApproximately 8.80% + variable

United States

CapitalWashington, D.C.

Employers Tax8.25% + variable

Uruguay

CapitalMontevideo

Employers Tax12.60% + variable

Saudi Arabia

CapitalRiyadh

Employers Tax2.00% – 12.25%

United Arab Emirates

CapitalAbu Dhabi

Employers Tax0.00% – 15.00% + variable GCC rate

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