XPANDIUM provides complete Employer of Record, Payroll services and solutions for clients who want to hire employees and run a full payroll without establishing a legal entity in Latvia.
Your selected candidates get hired by our local PEO entity. We take care of the compliant onboarding, payroll, tax payments, benefits, so you can focus on assigning employees to specific jobs and projects without further waiting and start to manage their daily work.
Employment relationships may be concluded for
Maximum 3 months, optional as Employee and Employers can agree upon a probationary period.
Full time employment is considered 8 hours per day and 40 hours per week in Estonia. Less hours means part-time work.
Hours worked above 8 hours per day / 40 per week or on public holidays are considered overtime. Overtime hours must be compensated during payroll with 200% allowance pay.
The current minimum wage is 500 EUR for full-time employment.
Not required.
Not required.
Salaries are payrolled and paid on a monthly basis usually on the last working day of the month.
The Latvian healthcare system is a universal programme under which all residents are assured, largely funded through government taxation. It is similar to British NHS-type health system with a purchaser-provider split.
10.50% State Health Insurance and Solidarity Tax
Personal Income tax varies based on the Annual Salary:
20% up to 20,004 EUR
23% up from 20,005 to 62,800 EUR
31% from 62,801 EUR
33.8% total employment cost in Latvia
NAME
DATE
INFO
New Years Day
January 1
Good Friday
April 2
Friday before Easter Sunday
Easter Sunday
April 4
Varies yearly
Easter Monday
April 5
Varies yearly
Labour Day
May 1
Independence Day
May 4
Declaration of Independence of the Republic of Latvia
Mother’s Day
May 14
Varies yearly. 2nd Sunday of May
Whitsun
May 24
Midsummer’s Eve
June 23
Janis Day
June 24
Latvia Day
November 18
Proclamation of the Republic of Latvia
Christmas Eve
December 24
Christmas Day
December 25
2nd Day of Christmas
December 26
New Year’s Eve
December 31
You may offer custom benefits for your employees. As an Employer, you may benefit from offering an attractive compensation package during hiring. This means that in addition to salary, employees may receive one or more non-salary compensation.
Supplementary medical insurances (private / dental / vision)
Supplementary Life or other special insurance
Additional paid holidays
Flexible work schedule
Voluntary pension fund scheme
Offering individual benefits for one or a selected group of employees needs to be planned and advised to be signed with a side agreement along with an employment contract.
Employees are entitled to 20 days. This leave may not be shorter than 4 calendar weeks, not including public holidays.
By agreement between the Employer and Employee, paid annual leave for the current year may be granted in instalments; however, one instalment of annual leave in a given year may not be less than 2 uninterrupted calendar weeks.
Cash compensation for annual leave is prohibited, except in cases where an employment relationship is terminated and an employee has not used up their paid annual leave.
There are 15 public holidays in Latvia.
An employee is entitled to employer paid 10 days yearly.
Payment is 75% of the employee’s average salary, but for the 4th - 10th days of sickness it is 80%. After the 10 days the State Health Insurance takes over the payment and for up to 52 weeks.
Expecting women can have a total 112 (56 + 56) days.
Maternity leave may start 56 days prior to giving birth.
Government covers maternity leave with 80% payment.
The father is entitled to 10 working days off for paternity leave.
An employer may grant an employee unpaid leave at the employee’s request.
If a parent has 3 or more children under the age of 16 years or a disabled child under 18 years. The duration of such additional leave is 3 working days.
If an employee's work involves a specific risk, the additional leave may not be less than 3 working days.
If a parent takes care for 1 or 2 children up to the age of 14 years, the the additional paid leave may not be less than 1 working day.
Employers have the below options to terminate an employment contract in Latvia:
Termination by the Employer is immediately effective.
Employees may freely terminate their employment contract with a written notice of minimum 1 month notice.
An employment agreement may be terminated by the Employer by notice but must be with a cause. Employers must inform the Employee in writing of the reason for termination and the Employee has 1 month to challenge such decision.
Notice period can not be less than 1 month.
If termination is due to Employer’s redundancy, the employee is entitled to the salary that they would have received from the date of termination to the expiry date of the contract.
The termination by mutual consent allows the Employer and Employee to agree freely but in written agreement with each other on the conditions of termination.
When the employment contract expires then such employment is automatically terminated.
Employee is entitled to severance pay if the Employer terminates the contract due to redundancy In Latvia.
Employees are entitled to receive higher amounts of redundancy pay depending on the length of employment with the Employer: