Hire in Latvia

Latvia PEO &

Employer of Record

Hire & manage teams remotely in Latvia without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Business Language

Latvian, English

Salary Currency

Euro

Capital city

Riga

Time zone

UTC +3

EOR in Latvia

Hire Employees in Latvia

NNRoad provides professional employment organization (PEO) & employer of record (EOR) services in Latvia to ensure that your business complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

Fast Hiring

Start working with your remote employees in a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.

Platform

Access your payroll reports on our portal.

Employer of Record in Latvia

Employer of Record (EOR) services are for companies who do not have a legal entity in Latvia, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

1. Candidate Selection

Select the candidates you want to hire in Latvia.

2. Employee Onboarding

We sign a local labor contract with your employees based in Latvia.

3. Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Latvia.

EOR service includes:

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

All mandatory employer (and employee) contributions filed and paid for your EOR employees.

Payroll recording, reporting and administration.

Distribution of salaries to employees through direct deposit into their bank accounts.

Calculation, reporting, filing and processing of EOR employee’s individual income tax due.

Collecting and processing your employee’s invoices for business related expenses.

Guiding and organizing your expat employee’s work visa application too guarantee their successful onboarding.

Standalone Payroll & PEO in Latvia

Professional Employment Organization (PEO) services are for companies who have a legal entity in Latvia, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

Employee Income Taxes:

Individual income tax rates in Latvia are based on progressive tax brackets.

In Latvia, the income tax system for employees is administrative. This means that it is the responsibility of the employer to withhold and declare the income tax of their employees. The employers deduct the appropriate taxes from employees’ salaries and pay these directly to the government, simplifying the tax filing process for the workforce.

Tax Brackets:

Sample Calculation

20%: €0 – €20,004
23%: €20,004 – €62,800
31.4% > €62,800
Individual Income Ta due on €30,000

Calculation:
Tax on first €20,004: 20% of €20,004 = €4,000.80
Tax on remaining €9,996: 23% of €9,996 = €2,299.08

Total tax = €4,000.80 + €2,299.08 = €6,299.88

Employer Contribution

Employers in Latvia are required to contribute to several statutory social security funds. These contributions include:

Social security contributions: 24.09% of gross salary

Employee Contribution

Employees also make contributions from their salary towards social security:

Social security contributions: 11% of gross salary

Social Security

Social security in Latvia covers pensions, health insurance, unemployment benefits, and other social guarantees, funded through contributions from both employers and employees.

Pension Fund

In Latvia, both employers and employees contribute to the pension fund. The employer’s contribution is part of the overall 24.09% social security payment, while employees contribute 11% towards their pensions.

Healthcare Insurance

Healthcare contributions are included in the social security payments, with employers contributing 24.09% and employees 11% of the gross salary, ensuring coverage for medical services.

Working Hours Per Week

The standard working hours in Latvia are 40 hours per week, usually spread over five days, from Monday to Friday.

Overtime

Overtime in Latvia is compensated at no less than 100% of the employee’s average salary, with higher rates applicable during weekends and national holidays.

Legal grounds for termination in Latvia include poor performance, breach of employment contract, mutual agreement, redundancy, and economic reasons. Employers must comply with local labor laws to ensure the termination process is fair and justified.

Severance

Standard severance pay in Latvia is typically calculated based on the employee’s tenure, ranging from one to four months’ average earnings, depending on the duration of employment.

Notice Period

The notice period required from employers in Latvia varies from 10 days to 3 months, depending on the employee’s tenure and the terms of the employment contract. For employees, the standard notice period is one month.

Employment Contract

Labor contracts in Latvia must clearly state the job description, compensation, working hours, and terms related to leave and termination. Contracts should also detail the probationary period and any benefits provided by the employer.

Probation Period

The maximum legal duration for a probation period in Latvia is three months for most employees, extendable to six months for executive positions.

Annual Leave

Employees in Latvia are entitled to a minimum of 20 working days of paid annual leave per year.

Sick Leave

Employees receive up to 10 days of paid sick leave per year, and additional sick leave can be compensated at a lower rate.

Maternity Leave

Pregnant employees are entitled to 112 days of paid maternity leave.

Paternity Leave

Fathers in Latvia are granted 10 days of paid paternity leave, which must be taken within two months after the child’s birth.

Public Holidays

01/01 New Year’s Day
Good Friday (date varies)
Easter Monday (date varies)
05/01 Labour Day
05/04 Restoration of Independence Day
06/23 Midsummer Eve
06/24 John’s Day
11/18 Proclamation Day of the Republic of Latvia
12/25 Christmas Day
12/26 Second Day of Christmas

Resources

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