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Employer of Record (EOR) in Latvia

What you'll learn

  • Country Introduction
  • Employment Terms
  • Minimum Wage and Working Hours
  • Statutory Leave Laws
  • Termination Process
  • Additional Information
Latvia Introduction

Latvia is a Baltic country in northern Europe, bordered by Estonia, Lithuania, Russia, Belarus, and the Baltic Sea. It is considered a developed country with a high-income economy, and ranks highly in the Human Development Index. Ethnic Russians have became the most prominent minority in Latvia (now making up nearly 25% of the population) due to extensive immigration during Soviet occupation.Latvia is known to have civil liberties, press freedom, internet freedom, democratic governance, good living standards, and peacefulness.

Employment Terms

The minimum wage in Latvia is EUR 500, and a standard workweek is 40 hours at 8 hours per day. Overtime work must be mutually agreed upon by the employee and employer, and is usually paid at 200% of the regular salary.

Types of Leave

Parental Leave

Pregnant employees in Latvia are entitled to 112 days of paid maternity leave, of which 56 days must be taken before the due date and 56 days must be taken after the birth. This leave is paid by social security at 80% of the employee’s average salary.

Fathers are entitled to 10 days of paid paternity leave, paid by social security at 80% of the employee’s average salary. Either parent can also take 18 months of parental leave before their child is 8 years old, paid at between 43.75%-60% of their average salary.

Sick Leave

Employees who have worked at a company for at least 1 month are entitled to sick leave for 10 days, paid by the employer at 75-80 of the average salary. If the sickness lasts more than 10 days the employee can receive the Sick Leave Benefit for up to 52 weeks (in a period of 3 years).

Paid Leave

There are 12 national holidays in Latvia, and employees who have worked at least 6 months at their company are also entitled to at least 4 weeks of paid time off each year. At least 2 of the weeks of leave need to be taken consecutively.

Termination Process


Employers can terminate a contract for reasons relating to business, personal, or misconduct. A written notice and explanation is required. If the reason for the termination is misconduct, there has to be a warning given so the employee has a chance to explain their actions.

Notice Period

The statutory notice period for terminations is 1 month.

Severance Pay

Severance pay depends on how long the employee has worked at the company:

  • 0-5 years = 1 month of wages
  • 5-10 years = 2 months of wages
  • 10-20 years = 3 months of wages
  • 20+ years = 4 months of wages

Additional Information


Euro (EUR)
Capital City:
1.8 Million
Cost of Living Rank:
VAT (Valued Added Tax):
Employer TaxES

★  20.77%-23.59% - Social Insurance

Get Started in 3 Steps


Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.


Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.


Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
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Available in 180+ countries
How Remofirst employs in Latvia

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Latvia get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Latvia are paid on time in Euro (EUR). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Latvia, they can speak with our customer support team to get answers from our team of experts.