Guide to employment, payroll and benefits in

Latvia

Rivermate offers complete payroll, benefits and compliance services for

Latvia

01. Overview

Last updated: 

August 19, 2021

Currency
Euro
Capital
Riga
Ease of doing business
80.3
Language
Latvian
Population
1886198
GDP growth
4.55%

02. Grow your team in

Latvia

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Latvia

, particularly if you don't have established local relationships. You can hire employees in

Latvia

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Latvia, officially the Republic of Latvia, is a country in Northern Europe's Baltic region. It is one of the Baltic states, bordered on the north by Estonia, on the south by Lithuania, on the east by Russia, on the southeast by Belarus, and on the west by Sweden. Latvia has a population of 1.9 million people and a land area of 64,589 km2. The climate in the country is mild throughout the year. Riga is the capital and largest city of Latvia. Latvians are part of the Balt ethnolinguistic community and speak Latvian, one of the two remaining Baltic languages. Russians make up a significant minority in the region, accounting for 24% of the total population. The Republic of Latvia was founded on 18 November 1918, when it broke away from the German Empire and proclaimed independence in the aftermath of World War I, after centuries of German, Swedish, Polish-Lithuanian, and Russian rule, much of which was carried out by the Baltic German aristocracy. However, by the 1930s, the nation had become increasingly autocratic after the coup in 1934 establishing an autocratic government. Latvia's de facto independence was shattered at the start of World War II, with the country's forcible absorption into the Soviet Union, followed by Nazi Germany's invasion and occupation in 1941, and the Soviets' re-occupation in 1944 to create the Latvian SSR for the next 45 years. The peaceful Singing Revolution began in 1987 and ended on August 21, 1991, when de facto independence was restored. Latvia has been a federal, unitary parliamentary republic since then. Latvia is a developing nation with a high-income industrialized economy and a Human Development Index score of 100. In terms of civil liberties, press freedom, internet freedom, democratic governance, living standards, and peacefulness, it performs well. Latvia is a member of the European Union, Eurozone, NATO, the Council of Europe, the United Nations, CBSS, the IMF, NB8, NIB, OECD, OSCE, and WTO. It is also a member of the European Union, Eurozone, NATO, the Council of Europe, the United Nations, CBSS, the IMF, NB8, NIB, OECD, OSCE, and WTO.

04. Public holidays

05. Types of leave

Paid time off

The annual leave period is 20 days (four calendar weeks).

Public holidays

There are 12 national holidays in Latvia.

Sick days

Employers pay 75% for the first three days and 80% for days four to ten.After ten days, the employee is paid by the Sick Leave program for up to 52 weeks.

Maternity leave

56 days before and 56 days after a baby's birth, for a total of 112 days at 80 percent of the government's salary.

Paternity leave

Fathers in Latvia are entitled to 10 days of paternity leave.

Parental leave

Other leave

06. Employment termination

Termination process

Termination must be for a legitimate reason. Employers must communicate the reason for termination to the employee in writing. Employees have one month to appeal a decision.

Notice period

A minimum of one month's notice is required.

Severance pay

Severance pay is calculated based on an employee's length of service with the company. If an employee has worked for the company for less than five years, the severance pay is equivalent to one month's salary. Severance pay is equivalent to two months' salary if the employee has worked for the company for five to ten years. If an employee has worked for the company for ten to twenty years, he or she is entitled to three months' pay. If an employee has worked for the company for more than twenty years, the severance pay is equal to four months' salary.

Probation period

The probationary period in Latvia is usually 30 days.

07. Working hours

General

In Latvia, the standard workweek is eight hours per day, spread over five days. The workweek is limited to forty hours. In certain circumstances, the workweek may be extended to six days, but only after consultation with the relevant employees' union. If the workweek is six days long, the workday cannot exceed seven hours in length.

Overtime

In general, employees over the age of 18 may work overtime if they have signed a written agreement authorizing them to do so. Employers may require overtime without the consent of employees in the event of an emergency or in certain circumstances involving an urgent business need. Generally, an employee who works overtime must be compensated at least double his or her regular hourly or daily rate. Overtime hours are limited to 48 per week.


Latvia also has special regulations governing night work, which is defined as any period of work lasting more than two hours that occurs between 10 p.m. and 6 a.m. between 6 a.m. and 6 a.m. Individuals under the age of 18, pregnant women, and mothers who have recently given birth are not permitted to work at night. Employees who work nights must be compensated at least 50% more than their regular hourly or daily rate.

08. Minimum wage

General

Full-time employees in Latvia must make at least 430 EUR a month, while teenagers and employees who are subject to specific risks should make at least 2.03 EUR an hour. Latvia compensation laws define “special risk” as environmental risks that can impact the safety and health of an employee.

09. Employee benefits

General

Contributions to National Social Insurance fund national healthcare. Emergency medical care, services provided by general practitioners and dentists, lab testing, inpatient care, and medications are all covered by state-funded healthcare.

Supplemental health insurance and a company car are common employee benefits.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Latvia

to hire a team takes time, money, and effort. The labor law in

Latvia

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Latvia

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Latvia

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Latvia

via our Employer of Record / PEO solution.

Ready to get started? Our friendly staff is ready to assist you with all your questions, let's connect.