Minimum Wage
General
The Cabinet determines the minimum monthly salary in Latvia. The monthly minimum wage is 500 EUR.
Payroll
Payroll Cycle
In Latvia, the payroll frequency is generally monthly. However, the employer must make payment no less than twice a month unless the employee and employer have agreed on payment once a month.
13th Salary
There is no statutory requirement to provide a 13th salary.
Working Hours
General
The standard workweek in Latvia consists of 8 hours a day and 40 hours a week.
Overtime
Any work done above regular hours or on a public holiday is considered overtime and must also be mutually agreed upon prior to the commencement of any overtime work. Overtime hours are paid at a rate of 200.00% of the regular salary rate of pay.
Working Week
Monday-Friday
Leave
Paid Time Off
Employees are entitled to annual leave if they have been employed for at least six consecutive months. Such leave may not be less than 20 days (four calendar weeks), not including public holidays. Employees under 18 years of age are entitled to annual paid leave of one month.
With the agreement of the employee and the employer, annual paid leave in the current year may be granted in parts, but one part of the leave in the current year shall not be less than two uninterrupted calendar weeks.
Public Holidays
There are 12 National Holidays.
Sick Days
Employees who have been employed for at least one month are entitled to receive sick pay for the first ten days of leave, paid for by the employer at a rate of 75.00% of the regular rate of pay for the first three days, increasing to 80.00% for the fourth to the tenth day.
If the employee is sick for more than ten days and eligible, the salary payment will continue to be paid by the government as Sick Leave Benefit for up to 52 weeks.
Maternity Leave
Female employees are entitled to 56 days before the birth and 56 days following the birth of a child, with maternity pay of 80.00% of the regular salary paid by the government.
Employees are entitled to a supplementary leave of 14 days added to the prenatal leave in the following cases: in case of complications in the pregnancy, childbirth, or postnatal period, if two or more children are born, and if the woman has initiated pregnancy-related medical care at a preventive medical institution by the 12th week of pregnancy and has continued for the whole period of pregnancy.
Paternity Leave
Statutory paternity leave in Latvia is up to 10 days, whereby the child’s father will now be entitled to 10 working days leave, which can be taken immediately after the child’s birth, but no later than 6 months after the birth.
Parental Leave
Parental leave is granted to each of the parents. Every employee has an individual right to parental leave in connection with the birth or adoption of a child for a period of up to 18 months until the child reaches the age of eight years old. It can be taken as a single period or in parts agreed between the employee and the employer.
Employees who have a child under the age of 8 (eight) or need personal care for a spouse, parent, child, or another close family member, or a person living in the same household as the employee and who, for a serious medical reason, need substantial care or support, will have the right to ask the employer to adjust their working time arrangements. The employer is obliged to assess such a request and to inform the employee within 1 one month of the possibilities for adjusting working time arrangements in the undertaking. In such cases, the employee has the right to request the opportunity to work remotely.
Other Leave
There is no other statutory leave in Latvia.
Termination
Termination Process
Employers can terminate a fix term contract by giving the following reasons – business, personal, or worker’s misconduct. It requires notice and a written explanation for the termination. If the reason is misconduct, a warning needs to be given and the employee gets a chance to explain their actions.
Notice Period
The statutory notice period must be at least one month.
Severance Pay
In Latvia, statutory severance pay is dependent on the length of service.
- One month pay for employees up to 5 years of service
- Two months’ pay for employees with between 5 and 10 years of service
- Three months’ salary for employees with 10 to 20 years
- Four months’ pay for employees with over 20 years of service
Probation Period
In a collective agreement, the parties will now be able to agree on a probationary period of more than 3 (three) months but no more than 6 (six) months without reducing the overall level of protection of employees.
In an employment contract, it will now be possible to provide for a probationary period of:
- up to 1 (one) month for employment contracts for up to 6 (six) months;
- up to 2 (two) months for employment contracts for up to 1 (one) year.
VISA
VISA
Latvian law provides many options for employers of foreign nationals. Latvia is a member of the European Union (EU) and the Schengen Area. Requirements, processing times, employment eligibility, and benefits for accompanying family members vary by visa classification.
Business visitors to Latvia typically use a local version of the Schengen C Visa, unless they are visa-exempt based on their nationality. The Schengen Area limits stay to 90 days within 180 days.
The main work authorization categories are the Residence Permit with Work Authorisation, available to many foreign national workers.
The EU Blue Card is suitable for highly skilled, locally hired employees who meet a salary threshold. The (EU) Intracompany Transferee (ICT) Permit is available for intracompany transfers of managers, specialists, or trainees from outside the EU.
The application process always requires an in-country application with the Office of Migration and Citizenship Affairs (OCMA). If the intended stay is under 90 days, foreign nationals may also request a residence permit, thereby choosing between a visa and a residence permit.
VAT
General
The Standard rate of VAT in Latvia is 21.00%.
