Currency
Euro
Payroll Frequency
Twice a month
Capital
Riga
Fiscal Year
January 1 to 31 December
Employer Taxes
23.59% of an employee's gross salary
Employee Costs
€740
Date Format
Contribution
Employee contributions
The employee contributes about 10.50% of their gross salary toward social insurance.
A lower rate (about 9.25%) may apply in certain cases when the reduced employer rate applies.
Employer contributions
The employer contribution to social security (“state social insurance” etc) is generally 23.59% of the employee’s gross salary.
In special cases (for employees eligible for retirement/disability etc) a reduced rate of about 20.77% applies.
Minimum Wage
Latvia has a single national minimum wage that applies to all full-time employees across all sectors, including the tech industry. There is no specific, higher minimum wage for tech workers mandated by law.
As of January 1, 2025, the national minimum monthly wage in Latvia is €740 per month for a standard 40-hour workweek (gross salary, before taxes).
Key Points for Tech Workers
General Minimum Wage Applies: Tech companies are legally required to pay their employees at least the national minimum wage of €740 per month.
Actual Salaries are Much Higher: The tech industry generally offers salaries significantly above the national minimum wage due to high demand for skilled workers.
Typical Salary Ranges: Based on market data, salaries for tech professionals in Latvia typically range from approximately €1,273 (net minimum for the IT sector) to over €3,827 per month (highest average, actual maximum can be higher), depending on experience, specialization, and the specific role.
Junior/Entry-level positions can start around €1,000 net, with some entry points potentially lower.
Experienced professionals with specialized skills can earn well above €2,500–€3,000 net.
Actual salaries can be higher
Payroll
Salaries are normally paid monthly, though the law provides for twice‐monthly payments unless the employer and employee agree to monthly payments.
Taxes & Social Security / Contributions
Income Tax (Personal Income Tax, PIT)
Latvia uses a progressive PIT system. For example:
Up to about €105,300 annual income: tax rate ~ 25.5%.
Above that threshold: tax rate ~ 33%.
These rates may change in future, so check current tax tables.
Other payroll-/employment obligations
Payslips: Employers must issue payslips showing gross salary, all deductions (taxes, contributions), overtime, public holiday work, etc.
Employer must register with the tax authority (State Revenue Service (Latvia) / VID) and submit monthly or periodic declarations for salaries, taxes, and contri
Working Hours
The standard full-time working week is about 40 hours (8 hours per day) in many cases.
Leave
Annual leave: Employees are entitled to at least four weeks (20 working days) of paid annual leave per year.
Overtime: Work beyond standard hours (8 hours/day, 40 hours/week) is subject to overtime pay. For example, hours outside standard work times are considered overtime and capped rules apply.
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