Expand to Latvia with INS Global's PEO

PEO in Latvia

Hire Globally, Pay Locally, Expand Effortlessly

Expanding to new markets doesn’t have to be a lengthy and complicated process. With a professional and reliable partner like INS Global you can enter Latvia quickly and confidently. INS Global has been helping companies reach their expansion goals for the past 15 years. Our staff are uniquely equipped to meet any challenges you might face and offer personalized solutions for every need.

Partnering with an Employer of Record (EOR) in Latvia allows you to easily hire and onboard local talent. An EOR takes care of recruitment, contract management, and more so that you can focus on reaching your market goals.

A Professional Employer Organization (PEO) is similar to an EOR. With a PEO you can bring over existing staff and set up smoothly in a new market without the risk of costly legal errors.

PEO in Latvia - Summary

PEO in Latvia

Five Reasons to Partner with a Global PEO

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 PEO 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 PEO covers all administrative responsibilities with speed and professionalism.

More Time to Focus on Company Goals

Having a PEO 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 PEO 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.

Why Expand with a PEO 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 PEO 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 PEO 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
testimonial from Manuel Ramos


Manuel Ramos


Managing Director

We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately. 


How Does A PEO 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 PEO 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.

The Difference Between A PEO and EOR

Although there are many similarities between the two services, a PEO and EOR are not identical. When you understand how they differ you can make an informed choice about which one to partner with.

  • A PEO and EOR both function as organizations that offer services for employees of other companies. Some of these services include contract management, onboarding, payroll, and HR tasks.
  • One difference is that an EOR becomes the official employer of any employees it hires on behalf of the client. This also makes the EOR liable for any issues with the employees.
  • The contracts in a PEO or EOR relationship are also not the same. In a PEO, the contract is made between the company and the employer. In an EOR, the contract is directed by the company but officially made between the EOR and the employer.

Labor Law in Latvia in 2023

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.


  • In 2023 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.

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.
PEO in Latvia


Discover More Solutions in Latvia


No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.