Quick facts
Latvia, a Baltic nation in Northern Europe, has a growing economy with strengths in sectors like manufacturing, information technology, and finance. The country is part of the European Union, providing businesses access to a larger market. Latvian labor laws are designed to ensure fair working conditions, with strict requirements for contracts, work hours, and employee benefits.
In Latvia, employment contracts must be in writing and concluded before an employee begins work. Contracts are generally for an indefinite period, but fixed-term contracts are permitted for up to 5 years if justified, such as for seasonal work. Fixed-term contracts specify either an end date or conditions for termination.
Latvian labor law allows for a probation period of up to 3 months to assess an employee’s suitability. If a probation period is not specified in the contract, the employment is assumed to be without probation.
The standard workweek in Latvia is 40 hours over 5 days, with each workday capped at 8 hours. In cases where a 5-day workweek is not feasible, a 6-day workweek can be set, with workdays not exceeding 7 hours. Overtime requires written consent and must be compensated at a minimum of 100% of the regular wage.
Employees in Latvia are entitled to 4 weeks of paid annual leave, which excludes public holidays. With mutual agreement, annual leave may be split, but one portion must be at least 2 uninterrupted weeks. Unused leave cannot be compensated in cash, except upon termination.
For sickness absences, employers pay 75% of average earnings on the second and third days and 80% from the fourth to the tenth day. Starting from the eleventh day, payments are covered by the state social insurance agency.
Salaries are typically paid monthly or semi-monthly. In 2024, the minimum wage for EU citizens was €700 gross per month. For non-EU citizens, it varies based on their work permit type: regular permits or the EU Blue Card holders.
Latvia has 15 official public holidays, including:
Additional days, such as Good Friday and Easter Monday, are observed in spring, while Midsummer’s Eve and Janis Day celebrate Latvian culture in June.
Employers in Latvia contribute 23.59% of an employee's gross salary towards social security, along with a 0.36 fixed business risk fee.
Employees pay 10.5% social tax and 20-23% income tax on their earnings, with the rate varying based on income level.
Employees can resign with 1 month’s written notice. For terminations during probation, either party can give a 3-day notice. If an employee has a compelling reason related to morality or fairness, they can terminate the contract immediately.
Termination is typically by mutual agreement. Severance pay may range from 0 to 3 months' gross salary, depending on negotiations and the termination grounds. Fixed-term contracts end on the expiration date unless otherwise agreed. Parents or guardians may request termination for employees under 18 if work conditions threaten their well-being.
International EOR (Employer of Record) and PEO (Professional Employer Organization) are services that enable businesses to compliantly hire, manage, and pay employees in foreign countries without the need for establishing a legal entity. EOR acts as the legal employer while PEO co-employs workers, handling administrative tasks such as payroll, taxes, and benefits.
Acvian does not handle time record submissions directly. It is the client’s responsibility to track and submit employee work hours. However, Acvian can offer guidance and best practices to ensure efficient time tracking and compliance with local labor laws.
Employees can view their payroll details through the monthly payslips they receive and also via our Acvian platform. These payslips contain information on earnings, deductions, taxes, and net pay, giving employees a clear overview of their monthly payroll. Please note that in some countries, employers are restricted from viewing payslips due to data protection regulations, and only employees can share their payslips. For more details on these regulations, please contact our specialists.
Acvian addresses payroll disputes promptly, working closely with both the client and the employee to investigate and resolve any issues.
Yes, Acvian requires advanced monthly payments for salaries and service to ensure timely and accurate payroll processing.
Yes, Acvian can provide consultations regarding labor and tax legislation. Our team of experts is well-versed in local regulations and can offer guidance to help your business maintain compliance, reduce risk, and navigate the complexities of international employment and taxation laws.
Acvian provides a diverse range of benefits, including but not limited to:
We can customize and offer many kinds of benefits requested by the client, ensuring that your employees receive the support and perks that align with your company culture and local regulations.
Acvian can provide private health insurance options as part of its comprehensive employee benefits package.
The monthly/yearly costs for an ‘average’ package vary depending on the specific plan and location. See our estimated price packages here. Acvian’s team can provide detailed cost breakdowns based on your requirements.
While Acvian doesn’t directly provide entity set-up services, we can introduce you to local lawyers who specialize in this area to assist you with your needs. See also, when it's better to set the entity or use the EOR.
Offboarding is managed by Acvian in a structured and compliant manner. We coordinate with your business to ensure all necessary documentation, exit interviews, and final payments are completed. Acvian also ensures adherence to local labor laws and regulations, including providing any required notice periods and managing the termination process.
Businesses typically need EOR and PEO services when they:
Yes, Acvian is fully compliant with GDPR regulations. We collect and process personal data in accordance with the law, ensuring that data is used only for general, allowed purposes such as marketing and other legitimate business activities.
Acvian can supply EOR services in over 180 countries, encompassing almost all European nations, the United States, and Canada, providing extensive coverage to support your business’s global expansion and workforce management needs. See our coverage here.
Under EOR, Acvian manages the payroll process by:
Explore the details here.
Yes, Acvian provides comprehensive support for expatriate EOR workers, including:
Explore in details here.
Expats support from Acvian encompasses a range of services designed to facilitate a smooth transition for employees working abroad. Key aspects include:
After onboarding, Acvian maintains an ongoing relationship with your business and employees, ensuring smooth payroll processing, managing tax and regulatory compliance, handling benefits administration, and providing support for any changes or issues that may arise in the employment lifecycle. This allows you to focus on your core business operations while Acvian manages your international workforce.
The onboarding process typically takes between 2 to 4 weeks, depending on the country and complexity of the employee’s situation. However, Acvian strives to expedite this process, ensuring a smooth and efficient transition for your personnel. See our story of the urgent employment project.
Yes, Acvian provides in-country or regional support for employee inquiries and assistance requests. We have dedicated managers in the countries where we support your employees, ensuring prompt and knowledgeable assistance tailored to local regulations and practices.
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