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Country Guide

Employer of Record in Latvia (EOR Latvia)

Last updated: December 20, 2025

Capital City

Riga

Languages

Latvian

Currency

Euro (EUR, €)

Population Size

1.88 million

Employer Taxes

~23.59% total

Employee Costs

Gross salary + Employer social contributions (approx. 23.59%)

Payroll Frequency

Monthly

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Hire Globally, Pay Locally, Expand Effortlessly

Going through the administrative processes required to open a separate legal entity in Australia can be a time-consuming and complex procedure. 

A PEO in Australia (Professional Employer Organization) is a global mobility partner that ensures total legal compliance assurance in a target market for all overseas employees. A PEO in Australia gives companies the local expertise needed global expansion. Hire and provide HR services for employees in as little as 48h with INS Global.

An Employer of Record in Australia is a third-party provider of employment outsourcing services that acts as an employer for tax and HR administrative purposes. INS Global’s EOR in Australia allows companies to securely and cost-effectively hire and manage employees overseas in less than 48 hours.

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Why Expand with a EOR Instead of Company Incorporation?

While company incorporation is a more traditional method of global expansion, it’s time-consuming and can have a much higher risk of non-compliance errors. A EOR acts as the legal entity through which you can expand to new markets. This cuts down the wait time and reduces the amount of paperwork you have to go through.

Other benefits of a EOR include: 

  • Faster market entry
  • Less time and money spent on expansion
  • Having a team of experts on hand at all times
  • Connections to local talent pools and resources

PEO/EOR vs Company Incorporation

The Advantage in Figures

PEO/EOR

Company Incorporation

Price

80% Less Expensive

Market Entry

2-5 Days

6 Months

Employee Turnover
Decrease by 14%
Recommendation
98% of the Current PEO Clients
Administrative Fees
Saves an Average of $450
Costly Payroll and Compliance Fines
Help Avoid
Company Growth Rate
7 – 9%
ROI
27%
Closed During Pandemic
-58%
employer of record

Five Reasons to Partner with a Global EOR

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Receive Legal Advice from Experienced Experts

Understanding a foreign legal system is not easy, and any misunderstanding can lead to paying expensive fees and fines. A EOR will not only keep you legally secure, but will also make sure you implement any necessary changes as new laws or bills are passed.

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Reduce Unnecessary Spending

Rather than having to train your staff to handle complex HR tasks, a EOR covers all administrative responsibilities with speed and professionalism.

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More Time to Focus on Company Goals

Having a EOR handle payroll, taxes, and contract management gives you more time to explore the new market and make valuable business connections to further your expansion goals.

icon EOR

Set Up Faster, Succeed Easier

With traditional company incorporation you might have to wait a whole year before you can start operations. A EOR can have you set up in just a few days.

icon EOR

Everything You Need at One Point of Contact

Instead of having to outsource to multiple services, you can have all your needs met on a single platform.

How Does A EOR In Latvia Work?

INS Global uses a tried-and-proven four step plan to help realize your expansion dreams:

1

We discuss your situation and formulate a custom-made plan.

2

Our EOR in Latvia is the legal entity through which you can bring staff over and start setting up.

3

We handle essential tasks like payroll, taxes, and HR services.

4

Your staff can continue day-to-day operations while we ensure that you are legally secure in every way.

INS GUIDES

Check Our Labor Law Guides

Learn how the Labor Law Guide is applied in all aspects and situations, from an employer and employee perspective.
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Labor Law in Latvia

Employment Contracts

  • Written employment contracts are required in Latvia and must state all details of employment including compensation amount.
  • Fixed-term contracts cannot last longer than 2 years.
  • Probation periods are typically 3 months. During this time either party may terminate the contract with a 3-day notice.
  • Termination notice periods are 10-30 days, depending on the circumstances.
  • Severance pay is calculated by seniority and is as follows:
  • 1 month’s wages for those with less than 5 years of service
  • 2 months’ wages for those with 5-10 years of service
  • 3 months’ wages for those with 10-20 years
  • 4 months’ wages for those with more than 20 years of service

Working Hours

  • A standard work week in Latvia is 40 hours, 8 hours 5 days a week.
  • Overtime must be agreed upon by both parties in writing and cannot exceed 144 hours over 4 months’ time.
  • Overtime must be compensated for at 200% of regular wages.
  • The current minimum wage is 620 euros a month.

Holidays

  • There are 12 public holidays in Latvia.
  • Employees who work during public holidays must be compensated with either 200% of their regular wages or with additional days off.

Types Of Leave

Annual and Sick leave

  • Paid annual leave is four weeks. Employees may request use of their annual leave after working for six consecutive months.
  • Sick leave is calculated as follows:
  • The employer pays for days 2-10.
  • The state covers from the 11th day to a maximum of 26 weeks.
  • From day 2-3 of sick leave the employee receives 75% of their regular wages.
  • From day 4-10 the employee receives 80% of their wages.
  • From day 11 the state compensates the employee with 80% of their wages.

Maternity/Paternity Leave

  • Maternity leave is 112 days in total and can be split as 56 days before birth and 56 days after.
  • Those who must receive extra care due to pregnancy complications receive a maximum of 140 days of maternity leave.
  • Paid paternity leave is 10 days.
  • Parental leave is 13-19 months, 2 months of which can be taken until the child is 8 years old.
  • Parental leave is compensated at 75% to 60% of the parent’s salary, depending on the situation.

Tax Law in Latvia

  • Corporate tax is 20%.
  • VAT is 21%, with a reduced rate of 12% for certain goods.
  • Income tax is charged at a progressive rate from 20-31%.
  • Social security contributions are 10.9% for employees and59% for employers.
  • Self-employed individuals pay 31.07% for social security contributions.
  • Latvia has DTTs (Double Taxation Treaties) with over 60 countries worldwide.

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Frequently Asked Questions

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In Latvia, the price of specialized EOR services is calculated as a percentage of a coworker’s monthly income. This price includes all HR tasks required to ensure compliance with all local employment rules.  

Without the need for a new firm structure, handling employer duties through an EOR is secure, legitimate, and efficient in Latvia. EOR services achieve this by having top-notch HR support and in-depth familiarity with local legal authorities. 

With an EOR service agreement, your team members will be completely protected by the law, receive correct and timely monthly payments, and be eligible for all Latvian employee benefits.  

While working with clients through a Latvian EOR, independent contractors have complete control over their work and may be eligible for many or all of the same benefits as regular employees or as if they were utilizing an umbrella firm. 

Our recruiting professionals can find the best local employees in Latvia for your needs by utilizing their vast professional networks, in-depth knowledge of the local business resources and standards, and strict adherence to ethical hiring processes.  

As a result, integrating them into our Latvian EOR system will be easier and more effective than hiring these candidates through more conventional employment methods. 

You obtain thorough compliance-assured employment outsourcing assistance from a genuinely global EOR services provider through INS Global. An EOR complies with all relevant municipal, national, and regional laws.  

There may be strict hiring requirements or a limit on the number of employees you can hire at once at some Latvian PEO or EOR service providers. However, your global business plan may require you to scale up or down quickly. 

INS Global is aware of this, so when you work with us, you can employ as few or as many individuals as you need to in order to accomplish your goals. 

Payroll costs, hiring costs, signing bonuses, and other direct and indirect expenditures like incentive programs, managing the taxes of international workers, and social insurance should all be considered as parts of the total labor cost in Latvia. 

Using Latvian PEO services won’t need a local site, which could help you avoid onerous incorporation regulations.  

It’s still a good idea to give your staff the option of working in a shared workspace or the freedom to do so whenever and wherever it’s most convenient. INS Global can help set up suitable working environments in Latvia. 

If Latvian citizens or foreigners are subject to various local employment standards, tax legislation, or employee incentives, we can deal with all the important distinctions, like visa and work permit requirements.  

The best EOR and PEO solutions are accessible to businesses of all sizes, from SMEs to multinational corporations. Employment outsourcing solutions enable the efficient and secure hiring of international or local staff.  

Our services can even replace more complex internal HR requirements and are easy to scale up to meet the demand for new hires.  

The legal expertise provided by PEO and EOR services would be beneficial to businesses in a number of industries that either don’t have their own structures in a target country (or seek to avoid cost-scaling difficulties while focusing on expansion).  

Staffing firms and umbrella corporations are two more third parties that may be used to directly or indirectly employ independent contractors.  

In Latvia, most independent contractors are self-employed or run their own small businesses. According to Latvian law, hiring contractors requires using labor agreements rather than employment contracts. 

An independent contractor might have to produce a CV, portfolio, verifiable references, and a signed NDA before work begins. 

Payroll in Latvia is typically organized every month, with different rules for residents and non-residents. Employers are generally responsible for managing tax and social security contributions on behalf of their employees. 

The monthly minimum wage in Latvia was raised to €620 per month for 2026.  

As a country within the Schengen area, Latvian visas follow typical Schengen patterns. EU and EEA citizens can live and work in Latvia without requiring a visa, but for everyone else, there are C (short stay, 90 days) and D visa (90 days to 1 year) types alongside the EU Blue Card (for highly qualified specialist works, valid for up to 4 years) 

In Latvia, employers must contribute an amount equivalent to a percentage of an employees salary to their social security fund every pay period. This percentage depends on the companys registration status but typically varies between 20-23%.  

Employees in Latvia are eligible for all the usual employee benefits provided by Latvian Labor Law, including paid leave, overtime, workplace safety protection, pension, unemployment, and health insurance. 

All amendments to an employment contract in Latvia must be made by mutual consent, with adequate notice given in advance.  

Latvian citizens are eligible for free healthcare through a public system funded by social security contributions. 

Expat workers may be required to pay an additional fee to access the public healthcare system.  

Notice periods for employees in Latvia must be a minimum of 1 month unless otherwise specified in the employee’s contract or CBA.  

Employees who are terminated due to redundancy or economic reasons may be eligible for severance pay equalling 1-4 months of salary (dependent on seniority). 

The Latvian Labor Inspectorate oversees the implementation of occupational safety and workers’ rights in the country.  

There are typically 15 days of paid public holidays per year in Latvia, with employees expected to work on a public holiday eligible for double pay or time off on another day.  

Smiling woman representing the simplicity and efficiency of a Global Employer of Record for international hiring

A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.

This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each  country.

Public Holidays Calendar

Republic of Latvia

Date Day Holiday Notes
1 January Wednesday New Year’s Day Start of the calendar year
18 April Friday Good Friday Christian holiday commemorating the crucifixion of Jesus
21 April Monday Easter Monday Day after Easter Sunday
1 May Thursday Labour Day / Constituent Assembly Convocation Day Celebrates workers and the 1920 Constituent Assembly
4 May Sunday Restoration of Independence Day Marks Latvia’s 1990 declaration of independence from the USSR
5 May Monday Restoration of Independence Day (observed) Observed since 4 May falls on a Sunday
23 June Monday Midsummer Eve (Līgo) Traditional celebration of the summer solstice
24 June Tuesday Midsummer Day (Jāņi) Celebration of St. John’s Day
18 November Tuesday Proclamation Day of the Republic of Latvia Commemorates the 1918 declaration of independence
24 December Wednesday Christmas Eve Evening before Christmas Day
25 December Thursday Christmas Day Celebration of the birth of Jesus Christ
26 December Friday Second Day of Christmas Also known as Boxing Day
31 December Wednesday New Year’s Eve Last day of the calendar year

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