Latvia EOR & PEO
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DID YOU KNOW
- Latvia holds over 1.2 million traditional folk songs, known as dainas – a UNESCO-recognised cultural collection reflecting centuries of oral heritage.
- Riga boasts the world’s highest concentration of Art Nouveau architecture, with more than a third of its buildings in this intricate style – many crafted by architect Mikhail Eisenstein.
- Latvia’s national flag dates back to 1279, making it one of the oldest still in use today – an enduring symbol of national identity and independence.
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Working in Latvia
Financial Year Dates
Latvia’s financial year runs from January 1st to December 31st.
Minimum Wage
As of 1 January 2025, the minimum monthly wage in Latvia is €740.00.
Standard working hours
Latvia allows various working time arrangements, including standard, part-time, shifts, and summarized schedules. Standard hours are 8 per day and 40 per week, typically Monday to Friday. Alternative schedules must be outlined in the employment contract, with hours tracked by the employer. Summarised working time permits flexible shifts, provided total hours don’t exceed 160 over four weeks.
Overtime
Overtime in Latvia is permitted with written agreement between employer and employee, specifying hours and pay. It must not exceed 144 hours over four months and must be compensated at no less than 100% of the regular wage. Additional hours worked under a shortened schedule aren’t classified as overtime, though employees can request compensation – the amount is not legally defined.
Holiday Allowance
Employees are entitled to a minimum of four calendar weeks of paid annual leave, excluding public holidays.
Sick Leave
Employees in Latvia can take up to 52 weeks of partially paid sick leave. The first day is unpaid; employers pay 75% of salary on days 2–3 and 80% on days 4–9. From day 10 onward, the government pays 80% for up to 52 weeks. Contracts may be terminated after 6 consecutive months or 1 year of sick leave within 3 years.
Maternity & Paternity Leave
- Maternity Leave: 112 days (56 before and 56 after childbirth)
- Paternity Leave: 10 working days, to be used within 2 months of birth
Public Holiday
Key national holidays in Latvia include:
- New Year’s Day (1 Jan)
- Good Friday & Easter Monday
- Labour Day (1 May)
- Restoration of Independence Day (4 May)
- Midsummer (23–24 June)
- Proclamation Day (18 Nov)
- Christmas (24–26 Dec)
New Year’s Eve (31 Dec)
Social Contributions
Employer: 23.59% of gross salary
Employee: 10.50% of gross salary
These contributions fund pensions, healthcare, and unemployment insurance.
Income Tax
Latvia operates a progressive personal income tax system:
- Annual income up to €105,300 is taxed at 25.5%.
- Income exceeding €105,300 is taxed at 33%.
Health Care
Latvia provides universal healthcare, funded by the government and social insurance. While public healthcare covers essential services, many locals and expats choose private health insurance for quicker access and expanded options.
Visas
To work in Latvia, non-EU nationals need:
- A Type D long-stay visa
- A work permit, typically sponsored by the employer
Latvia also offers a digital nomad visa for remote workers employed by companies registered in OECD countries. Minimum monthly income requirement: €3,843.
13th salary
Latvia does not mandate a 13th salary, though year-end bonuses are common in some sectors, depending on company policy or individual employment contracts.
Cultural Information
Business Culture
Business interactions are formal and punctual, with direct communication and a preference for structure. Building trust is key, and decisions often follow a hierarchical path. Follow-up in writing is expected after meetings.
Language & Religion
Latvian is the official language; Russian is widely spoken, and English is common in business. Major religions include Lutheranism, Catholicism, and Orthodoxy.
Cuisine
Typical dishes include grey peas with speck, cold beet soup, and rye bread. Seafood, mushrooms, and dairy are also staples.
Festivals
The most celebrated event is Jāņi (Midsummer), known for bonfires, folk songs, and traditional foods. The Latvian Song and Dance Festival, held every five years, is a UNESCO-listed event showcasing national pride.