The Hardest Market · Latvia

Latvia's HR data

The rules and costs of employing people in Latvia (Riga), from official sources, in English and Japanese.

44%women in management (2024, ILO)
1.24×employer's total cost on €36,000 a year, as a multiple of salary
15public holidays (2026)
Take-home pay calculatorJapan take-home pay

Employment rules

Statutory annual leave4 calendar weeks
Public holidays (2026)15 days
Notice of dismissal10 days-1 month by ground (employer); 1 month (employee)
Severance required by law1-4 months' pay by service (no-fault dismissal)
Typical negotiated exitNo official benchmark
ProbationUp to 3 months
Working hours40 h/week; 8 h/day
How hard is dismissal?Moderate: statutory grounds only

Employer contributions

State social insurance (VSAOI, employer)23.59%up to €105,300 a year
Solidarity tax (employer, net of year-end refund)14.5%on pay above €105,300 a year

Employee contributions

State social insurance (VSAOI, employee) incl. solidarity tax10.5%

Take-home pay and employer cost by annual salary

Annual salaryEmployee contributionsIncome taxTake-homeEmployer costCost ÷ salary
€24,000€2,520€3,794€17,686€29,6621.24×
€36,000€3,780€6,533€25,687€44,4921.24×
€54,000€5,670€10,641€37,689€66,7391.24×
€80,000€8,400€16,575€55,025€98,8721.24×

Employee in Riga, Latvian tax resident and national, below pensionable age, single with no dependants, salary only paid evenly as monthly pay (no bonus), calendar tax year 2026, the employee's tax book (algas nodokļa grāmatiņa) filed with this employer. Personal income tax at 25.5% on annual taxable income up to the social-insurance maximum (€105,300) and 33% above, after deducting the employee's social insurance contributions and the €550 monthly non-taxable minimum; a 3% additional rate on income over €200,000. State social insurance (VSAOI) at the standard rates for an employee insured for all risks; above €105,300 contributions continue as solidarity tax.

Sources: [1] [2] [3] Checked 2026-11-08; 2026 rates.