How to hire and pay EMPLOYEES IN

Latvia

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Before hiring

EMPLOYEES IN
Latvia

Before hiring employees in Latvia, there are a few important things you’ll need to know. Firstly, in Latvia, employees are entitled to four weeks of paid annual leave. This can be divided in several parts, but at least one of them must be of at least two subsequent weeks.

In Latvia, employment can be terminated by either party as long as "appropriate" notice is given, which can be between 10 and 30 days. 

We know this might sound overwhelming—but it doesn’t have to be. A solution like Oyster eliminates the barriers for you. With Oyster, you can automate compliance across 180+ countries, easily managing HR and payroll—all in one, easy-to-use platform. 

Get an overview of what you need to know when hiring in Latvia below.

At a Glance

CURRENCY

EUR

OFFICIAL LANGUAGE

LATVIAN

PAYROLL FREQUENCY

MONTHLY

PUBLIC HOLIDAYS

12

(based on region;
see here
)

EMPLOYER TAXES

~24%

of gross salary

13th / 14th SALARY

N/A

Good to know

  • In Latvia, employees that adhere to non-compete agreements are entitled to compensation of at least 40% of their average salary for the full duration of the clause.
  • Overtime work in Latvia cannot exceed eight hours on average within a seven-day period, calculated in a reference period that does not exceed four months.
  • Severance pay is calculated according to employees' length of service and can range from one to four months' wages.

Employment in

Latvia

Working hours and overtime

Normal working hours in Latvia are eight hours per day and 40 hours per week. 

Any overtime work over the standard hours is paid at double the rate of regular wages.

Overtime work cannot exceed eight hours on average within a seven-day period, calculated in a reference period that does not exceed four months.

Employment contracts
Probationary period

The probationary period in Latvia is no more than three months.

Pensions
Notice period

Employment can be terminated by either party as long as "appropriate" notice is given, which can be between 10 and 30 days.

The notice period for resignations is one month.

IP protection and non-compete agreements

Non-compete agreements must be clear and not exceed two years in duration. During the non-competition period, the employee is entitled to compensation amounting to at least 40% of their average salary at the time of the termination.

Employment cost calculator

Holidays

01 Jan

New Year's Day

24 Jun

St John's Day

02 Apr

Good Friday

18 Nov

Independence Day

05 Apr

Easter Monday

24 Dec

Christmas Eve

01 May

Labour Day

25 Dec

Christmas Day

04 May

Independence Restoration Day

26 Dec

2nd Day of Christmas

23 Jun

Midsummer's Eve

31 Dec

New Year's Eve

01 Jan

New Year's Day

02 Apr

Good Friday

05 Apr

Easter Monday

01 May

Labour Day

04 May

Independence Restoration Day

23 Jun

Midsummer's Eve

24 Jun

St John's Day

18 Nov

Independence Day

24 Dec

Christmas Eve

25 Dec

Christmas Day

26 Dec

2nd Day of Christmas

31 Dec

New Year's Eve

Employer tax

In Latvia, an employer’s total social contributions total are around 24%. 

Individual tax

In Latvia, employees pay a flat rate income tax of 23%. Employees pay social security tax at a rate of around 11%. In Latvia, income levels above EUR62,800 are subject to solidarity tax, paid at the same rate as social security contributions.

Termination of employment

Employees should be paid a severance pay according to their length of service. The breakdown is as follows:

  • Up to five years’ service: One month’s wages
  • 5-10 years’ service: Two months’ wages
  • 10-20 years’ service: Three months’ wages
  • 20+ years’ service: Four months’ wages

Start hiring employees in

Latvia

Setting up a business entity everywhere you want to hire a new employee isn’t scalable—it takes too long and the legal fees are high. At the same time, understanding and adhering to the local labor laws and employee expectations can be complex and time consuming. And it’s hard to find reliable information on up-to-date employment information for all the countries where you’re considering hiring. Not to mention tracking down invoices and managing employee contracts over email and spreadsheets—that gets messy fast. 

We can’t afford to take risks when it comes to compliance—we need to make sure we follow the local guidelines, especially when it comes to taxes and legalities. 

With Oyster, you can manage HR and payroll, and automate compliance across 180+ countries—all in one, easy-to-use platform.


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