Hire in Latvia

EOR in Latvia

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Latvia, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Latvia ―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Latvia and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Hiring in Latvia

The principal statute regulating employment is the Labor Law.

Employment contracts in Latvia

As you look to hire employees in Latvia, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

Regular daily working time may not exceed eight hours, regular weekly working time 40 hours, generally in a workweek of five days. If a six-day week is scheduled, daily working time may generally not exceed seven hours. A working day of fewer than eight hours in a five-day week may be offset by a day of more than eight but no more than nine hours.

Employees who work more than six hours a day must receive a break of at least 30 minutes.

Employers must grant all employees rest periods of at least 12 consecutive hours in every 24-hour period and of at least 42 consecutive hours once a week, generally on weekends.

Overtime may not exceed 144 hours in any four months.

The day before a public holiday must be reduced by at least one hour.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:

• Effective 2024, Latvia’s monthly minimum wage has increased to 700 euros (US $697).
• Effective 2025, Latvia’s monthly minimum wage will increase to:
• Working more than regular hours or on a public holiday must be compensated at no less than 200% of an employee’s average rate.
• Employers must compensate employees with double pay for overtime work or work on a holiday.

As your employer of record in Latvia, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

The labor code does not address bonuses.

Probationary period

Probationary periods may generally not last longer than 6 months and for employment agreements set for a fixed term and shorter than 6 months, then the probationary period should not exceed 1 month.

Termination and severance

Employers and employees generally must provide the other party with one month of notice prior to terminating an employment relationship. Employers must give only one day of notice to temporary workers. Shorter notice periods also apply in justified termination cases. In addition to giving notice, employers must provide the following minimum severance payments if:

• Employed less than five years: one month of average earnings
• Employed at least five years but less than 10 years: two months of average earnings
• Employed at least 10 years but less than 20 years: three months of average earnings
• Employed 20 years or more: four months of average earnings.

Employee benefits and paid leave in Latvia

When negotiating terms of an employment contract with a candidate in Latvia, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Pregnant employees are entitled to 112 calendar days of maternity leave, divided as evenly as possible between pre- and postnatal leave.

A woman who has initiated pregnancy-related care at a medical facility by the 12th week of pregnancy and continued the care throughout her pregnancy and who suffers medical complications or gives birth to two or more children qualifies for 14 days’ additional maternity leave.

Vacation

Employers generally must provide all employees with at least four weeks of paid annual leave after they have worked for the employer for six continuous months. Three days of additional leave must be granted to employees who have at least three children under the age of 16, or a disabled child under the age of 18, and to employees who are exposed to special risks. At least one day of additional leave must be granted to employees with fewer than three children under the age of 14.

If the employer and employee agree, annual leave may be taken in parts, but one part must be at least two weeks.

Holidays

Under the Law on Holidays, Remembrance Days, and Celebrating Days, the following are official holidays:

• New Year’s Day
• Good Friday
• Easter Monday
• International Workers’ Day, annual convening of the Latvian Constitutional Assembly
• Restoration of Latvian Independence Day
• Mother’s Day
• Pentecost
• Midsummer Day (two days)
• Latvian Song and Dance Festival closing day
• Latvian Independence Day
• Christmas (three days)
• New Year’s Eve

If Restoration of Latvian Independence Day, the closing day of the Latvian Song and Dance Festival or Latvian Independence Day fall on a weekend, the holiday given is moved to the following Monday. Members of Christian denominations that celebrate Easter, Pentecost, and Christmas on different days may celebrate the holidays on those days.

Sick leave

Employers must pay employees on sick leave 75% of their earnings for the first and second days and 80% for the fourth through the 10th. Employees are required to obtain a sick leave certificate from a certified medical practitioner. The State Social Insurance Agency pays benefits from the 11th day at 80% of salary for a maximum 52 weeks if the leave is consecutive, 52 weeks within a three-year period if it is intermittent.

Health coverage

Men aged 63.5 or above who have been covered by the social insurance system for at least 15 years have a right to an old-age pension. The minimum retirement age will increase by three months a year through 2025, when it will reach 65.

Additional benefits In addition to healthcare benefits, employees in Latvia are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Latvia, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: September 12, 2024

Employee onboarding with an employer of record in Latvia

We write and validate all local employment contracts, streamlining the onboarding process for you and your Latvian employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Latvia, we will:

• Schedule a welcome call to discuss HR and employment information for Latvia, as well as answer any questions
• Prepare a customized employment contract in English or other local language
• Share the employment contract and benefits information with the new employee for signature and review
• Gather tax and banking information from the employee to set up payroll
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll

The entire onboarding process for the employee is often completed in as little as two weeks.

Partner with Safeguard Global as your Latvia employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Latvia. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.