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Payroll in Latvia
Payroll in Latvia runs in EUR on a monthly payroll cycle is standard, reported through the state revenue service (vid). cycle, with statutory employer contributions and no general statutory 13th-month payment is mandated.. Gracemark operates it end-to-end, humans, not tickets.
Currency
EUR, Euro
Payroll cycle
Monthly payroll cycle is standard, reported through the State Revenue Service (VID).
Working week
Standard working week is 40 hours under the Labour Law; overtime is paid at not less than 200% of the normal rate.
Minimum wage
The national minimum monthly wage is set annually by government regulation; the framework and VSAOI contribution rates were held stable through 2024 per the Ministry of Finance.
13th-month
No general statutory 13th-month payment is mandated.
Employer cost
The general mandatory state social insurance contribution rate (VSAOI) is 34.09% of gross salary, split as 23.59% employer and 10.5% employee.
Probation
Probation is generally up to 3 months under the Labour Law.
Notice period
Notice periods generally range from 10 days to 1 month depending on the grounds for termination; severance pay under the Labour Law ranges from 1 to 4 months' average earnings depending on length of service.
Two ways to run payroll in Latvia
Own-entity payroll
For long-term presence in Latvia. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on Northern Europe time.
EOR-run payroll
No entity in Latvia? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in typically 1–3 weeks via eor, no local incorporation.
Compliance essentials in Latvia
- Employment model: EOR vs. contractor vs. local entity for Latvia
- Mandatory benefits, social contributions and any 13th-month obligation
- Termination rules, statutory notice and severance exposure
- Contractor misclassification risk and how local law defines employment
- Currency (EUR), payroll cycle and Latvian-language contract requirements
Get a payroll quote for Latvia
Send your headcount and salary band. We reply with employer burden, net-to-gross, and setup timeline, no sales scripts.
Deeper guide
Hiring guide: Latvia →
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