Employer of Record in Latvia (EOR Latvia)
Last updated
- 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
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% | |
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Five Reasons to Partner with a Global EOR
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.
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.
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.
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.
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
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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
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.
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
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 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
Global Employer of Record is an effective solution for companies looking to expand their workforce abroad effortlessly.
This approach allows you to outsource the international hiring process quickly and efficiently, providing access to a global talent pool while still managing payroll compliance in each country.
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