As of March 2024, the estimated population of Latvia is 1,830,211.
The currency in Latvia is the Euro (EUR). The currency symbol is €.
The Labor Law of Latvia dictates that all employment contracts are made for an unspecified duration or permanent employment, except the ones explicitly concluded for a fixed term or seasonal, casual work. If the employment contract does not mention a specific duration, it is deemed as entered into for an unspecified period or permanent work. Permanent agreements can be terminated by either party with a notice period.
Latvia's Labor Law mandates the conclusion of employment contracts in writing. They must include information regarding employee and employer identification, start date, place of work, designation, remuneration, working hours, paid leave, notice period, probation, etc. If the employment contract has not been made in writing, the employee has the right to request it in a written form. An employment contract must be made and signed in duplicate, 1 for each party.
Temporary employment contracts are allowed for occasional and short-term work related to an expansion of the scope of work, an increase in production, or emergency work under exceptional circumstances. Employers are allowed to hire temporary employees through temporary work agencies (work placement services). Temporary employees are hired under a 3-way agreement between the agency, employee, and hiring employer. The agency must ensure the same working conditions and employment provisions are provided to a temporary employee as those provided to permanent employees hired directly. They must also ensure safe and harmless working conditions during the posting period.
Employment contracts can include a probationary period not exceeding 3 months in duration. Employees under 18 years of age cannot be employed with probation. An employment contract must explicitly state the duration of the probationary period. Without reducing the overall protection level of employees, a probationary period exceeding 3 months but not exceeding 6 months may be agreed upon in a collective agreement concluded with an employee trade union. In case of termination of a contract during the probationary period, it is not mandatory to give a reason for termination; however, a notice of at least 3 days must be provided. If the employer, when giving a notice of termination of an employment contract during the probationary period, has violated the prohibition of differential treatment, the employee has the right to bring an action to a court within 1 month from the date of the termination notice receipt.
The standard working hours are 8 hours per day or 40 per week. If the daily working time on any weekday is shorter than the regular daily working time, the length of some other weekday may be extended, but not more than by 1 hour. For employees working in high-risk jobs, as well as young employees over the age of 15 but under 18, working hours cannot exceed 7 per day or 35 per week. Employees between 13 and 15 years of age may not work for more than 10 hours a week. A workday is reduced by an hour before public holidays unless a shorter working time has been specified by a collective agreement, working procedure regulations, or an employment contract.
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Employees in Latvia are entitled to annual paid leave of at least 4 weeks, excluding public holidays. The right to full leave starts after 6 months of continuous work in the first year. Employees who have taken maternity leave can use their annual leave in the same year irrespective of service duration with the employer. Supplementary annual leave is granted to employees taking care of a child with a disability under 18 years of age or children under 16 (the duration of leave depends on the number of children). Persons who work in jobs associated with special risks are also eligible for supplementary annual leave. Annual leave can be transferred to the next year under certain circumstances.
Employees who have paid at least 3 monthly contributions within the last 6 months or 6 contributions in the last 24 months are entitled to sickness benefits. Sick leave is paid as follows: The first 10 days are paid by the employer at the rate of 75% of the employee's average earnings for the second and 3rd day, and 80% from the 4th to the 10th day. The first day of sickness is not paid. From the 11th day, benefits are paid by the State Social Insurance Agency at the rate of 80% of the average earnings of the employee for a maximum of 26 weeks continuously or 52 weeks in a 3-year period. In case of occupational sickness, the benefit is paid from the 1st day. The employee must present a medical certificate to the employer.
Pregnant employees are entitled to 112 days of maternity leave: 56 days before birth and 56 days after birth, each of which can be increased to 70 days in case of any complications. Employers must also provide appropriate leave for medical checkups if it is not possible to undergo such an examination outside of working time. It is prohibited to employ pregnant women in harmful jobs that pose a risk to their or their child's health or to force them to work overtime. A pregnant woman can request to work part-time during the period following childbirth for up to 1 year. Employees have the right to return to their previous position after maternity leave. Employers are prohibited from giving a notice of termination of an employment contract to women during pregnancy and the period following childbirth for up to 1 year. Maternity benefits are paid by the State Social Insurance Agency as 80% of the average salary of the employee for 112 days or a maximum of 140 days in case of complications. The benefit must be requested within 6 months from the first day of the maternity leave.
Latvia's labor law grants employees paternity leave of 10 calendar days. This leave must be taken within 2 months from the birth of the child. If a mother has died in childbirth or during the first 42 days following delivery, the father is entitled to a leave of 70 days from the date the child was born. Same-sex couples are also entitled to paternity leave. The benefits for paternity leave are paid by the State Social Insurance Agency as 80% of the average salary of the applicant. The benefit must be requested within 6 months from the 1st day of the leave.
When terminating an employment contract, an employer must give a notice period to employees based on the reason for termination as follows: In case of gross misconduct (illegal activities, showing up to work in a state of intoxication) or inability to work due to health issues - no notice period In case of violation of employment contract, acting contrary to moral principles, violation of health and safety provisions, or temporary disability for more than 6 months - 10 days of notice. In case of lack of adequate occupational competence, reinstatement of an employee who previously performed the respective work, reduction in the number of employees, or liquidation of business - 1 month. The notice must be given in writing and include the reason for termination. Persons hired for temporary work have the right to 1 day's notice. Fixed-term contracts without a final date can be terminated by giving 2 weeks' notice.
Employees who have been dismissed for lack of occupational competence, temporary disability, liquidation of the business, or reduction in the workforce are entitled to severance pay. Severance benefits are paid as follows, depending on the years of service: Less than 5 years of service - 1 month's average earnings 5 to 10 years of service - 2 months of average earnings 10 to 20 years of service - 3 months of average earnings More than 20 years of service - 4 months of average earnings.
In Latvia, there are 3 pillars of retirement pension schemes: Pillar 1 - State Mandatory Pay-As-You-Go Pension (Public Pension) Pillar 2 - State Funded Pension Scheme Pillar 3 - Voluntary Private Pension Scheme As of January 1, 2026, the legal retirement age is 65. To be eligible for a pension, the insured must have paid social insurance contributions for at least 20 years. The monthly retirement pension is calculated based on the insured's accumulated pension capital, average salary, insurance period, and average life expectancy.
The State Social Insurance Agency provides a survivor's pension to children, siblings, and grandchildren under 18 years, as a percentage of the old-age pension the deceased received or would have been entitled to receive, ranging from 50% to 90%. The minimum monthly pension is EUR 213 (euros) for children under 6 years of age and EUR 255 for children 7 or above. A deceased person's spouse is eligible for benefits if the deceased received an old-age, invalidity, or work record-related pension and died after January 1, 2019. The spouse is entitled to 50% of the pension received by the deceased person. If an insured employee dies due to a work-related accident or occupational disease, their survivors receive insurance indemnity, calculated based on the deceased person's average monthly insurance contribution salary. A funeral allowance is also paid. Latvia also provides a State social security allowance to permanent residents under 18 in case of the loss of a supporter. The benefit is paid as a minimum monthly pension of EUR 213 for children under 6 years of age and EUR 255 for children 7 or above.
Insured persons are entitled to a disability pension if they have not reached the retirement age and have been assessed with a disability. The pension amount depends on the type of disability and average insurance contribution salary, contribution period, and years left for retirement. The minimum amount of invalidity pension is granted if the person has not been subject to invalidity insurance for 5 years before becoming eligible for this benefit. In case of disability caused by a work-related accident or occupational disease, employees are entitled to indemnity for loss of ability to work, depending on the type and degree of disability. Latvia provides state social security disability allowance to disabled persons over 18 years of age who reside in Latvia permanently and are not eligible for state pensions.
Personal income tax is imposed on the income of all natural persons in Latvia. Residents are taxed on income from worldwide sources. Non-residents are taxed on their income from sources in Latvia. The following persons are considered residents: Individuals who have a permanent place of residence in Latvia Individuals who stay in Latvia for at least 183 days in 12 months Latvian citizens employed in a foreign country by the Latvian Government Latvia's taxation period runs the same as the calendar year, from January 1 through December 31. Non-residents are taxed at the same rates as residents. The personal income tax rates applicable through the tax year range from 25.5% to 33%.
Latvia is a Schengen member, and foreign nationals wishing to enter the country must apply for a Schengen visa. The following visa types are issued depending on the purpose and duration of the visit:
All three types can be issued as individual single-entry, double-entry or multiple-entry visas.
Foreign nationals are allowed to work in Latvia under the following categories of residence permits: With restrictions upon entering into an employment contract with a specific employer in a particular specialty (profession), part-time work, or concluding another civil legal contract For conducting commercial activities, if the person is an individual economic operator, a member of the board or the council, a proctor, an administrator, a liquidator, or a member of a partnership, or self-employed Without restrictions Beginning January 1, 2025, employers must have confirmation from the State Employment Agency (SEA) before inviting a foreign national. The employer must announce the vacancy to the SEA, and the SEA will determine the need for a foreign worker and issue a decision to the employer. Foreign nationals employed with a specific employer in a particular profession require a work and residence permit for their stay in Latvia. A work permit is issued with a visa or a temporary residence permit after a Latvian employer has demonstrated a need for a specific specialist. A short-term work permit is valid for 6 months, and long-term permits are issued in accordance with the residence permit (up to 4 years for temporary residence and indefinitely for permanent residence). Foreign nationals who have received a permanent residence permit for certain categories are allowed to work in Latvia without restrictions.
