Employment taxes

• Income tax: 25.5% on gross annual income up to €105,300. Income above €105,300 is taxed at a rate of 33%.
• Employee social security contribution: 10.5% (covers pensions, unemployment, and healthcare).
• Employer social security contribution: 23.59%.

You’ll see these automatically deducted from your monthly salary.

Leave policy

• Annual vacation: Minimum 20 days of paid leave per year.
• Public holidays: 15 paid national holidays.
• Sick leave: Paid by the employer for the first 9 days (75% pay days 2–3, 80% pay days 4–9); after that, the social security takes over.
• Maternity leave: 112 calendar days (56 before and 56 after birth) at 80% of an average salary covered by the social security.
• Paternity leave: 10 days paid at 80% of an average salary by the social security.
• Parental leave: Up to 18 months total (can be split between both parents) with partial salary support from the social security.

Employment termination

Contracts can be terminated by either party; however, Latvia protects employees from unfair dismissal.

• Notice period: Generally one month (for both employer and employee).
• Severance pay: Required for certain dismissals, between 1 and 4 months of average earnings, depending on tenure.

Hiring and contracts

• A written employment contract is mandatory and must outline job title, pay, hours, and terms.
• Contracts must be in Latvian and can be bilingual
• Probation period: Most jobs start with a probation period (up to 3 months).
• Common contract types: permanent (full-time, open-ended), fixed-term (for a project or specific period), part-time or project contracts (remote arrangements) are increasingly common, especially in tech and digital roles.

Payroll and salary payments

• National minimum wage: €740/month.
• Salaries are usually paid monthly, by the 15th of the following month.
• Payslips are provided in writing or electronically, showing all taxes and deductions.

Benefits

Mandatory:

• Paid vacation and sick leave
• Health insurance via Social Security
• Pension contributions

Optional:

• Private health insurance
• Flexible or remote work options
• Meal cards or lunch stipends
• Gym memberships or wellness budgets
• Extra vacation days or performance bonuses

Monthly living cost (Riga Edition)

• Rent: €500–€900 (city center apartment)
• Utilities: €100–€150/month
• Groceries: €250–€350/month
• Public transport: €30/month pass
• Eating out: Lunch €8–€12, dinner €15–€25
• Internet & mobile: €20–€30/month

The average monthly living cost for a single person is around €1,100–€1,400, depending on lifestyle.

How to get a local ID number

To work or live in Latvia, you’ll need a Personal Identification Number (Personas kods).

• Residents: Apply at the Office of Citizenship and Migration Affairs (OCMA).
• Remote workers: If you hold a long-term visa or residence permit, OCMA will automatically issue your ID during registration.
• You’ll need your passport, address, and proof of employment or residence.

Social Security Registration

Your employer handles your social security registration with the State Revenue Service (VID). If you’re self-employed, you’ll need to register directly via the VID portal. This ensures access to healthcare, pension, and unemployment benefits.

Banking

Opening a bank account in Latvia is simple once you have your local ID. Popular banks include:

• Swedbank
• SEB Banka
• Citadele Banka
• Luminor Bank

Most banks offer mobile apps in English, contactless payments, and easy international transfers.

Housing and rental process

• You’ll find apartments mainly through local portals or real estate agents.
• Typical rental deposits: one month’s rent plus the first month’s rent upfront.
• Tenant rights: Landlords must provide proper notice before eviction (typically 3 months), and rent increases must be agreed upon in advance.

Healthcare system

Latvia has a public healthcare system funded by social security. It covers GP visits, hospital care, and maternity services.

• Employees are automatically insured through payroll contributions.
• Many locals also get private insurance for faster access to specialists or private clinics.

Driving and public transport

• You can drive with an EU license. Non-EU residents must exchange it within 6 months.
• Public transport is reliable and affordable - buses, trams, and trolleybuses connect the whole city.
• Bike lanes are growing fast, especially in Riga.

Emergency and important contacts

Emergency number: 112 (police, fire, ambulance)

Work permit and visa requirements

EU/EEA citizens:

• No visa or work permit needed, you can work freely.
• Must register residence within 90 days of arrival.

Non-EU citizens:

• Need a residence permit and work visa.
• Usually applied for through your employer or at a Latvian embassy.
• A digital nomad visa is available for remote workers employed by foreign companies.

Business culture and work norms

• Latvians are known for being polite, punctual, and professional.
• Meetings start on time and stick to the agenda.
• Communication is straightforward, and honesty is appreciated.
• Expect a calm, respectful workplace where results matter more than noise.