Salary pay date
Employees should be paid monthly between the 1st to the 5th of each month.
The minimum pay for full time workers should not be lower than 500 EUR per month (2022).
There is no statutory bonus in Latvia.
Any supplementary bonuses should be outlined in the contract of employment.
Social security system
Latvian Social Security is governed by the State Social Insurance Agency of the Republic of Latvia (VSSA) and covers all benefits relating to sickness, maternity, disability, pension, unemployment and workplace compensation.
Monthly contributions are made by both the employer and employee.
Latvia has a state-funded national healthcare system (Nacionalais veselibas dienests) , which provides healthcare to all citizens of Latvia and employees who make social security contributions. Medical care and treatment in Latvia are often subject to a user charge, capped at an annual amount of EUR 569.15.
Employers may choose to offer supplementary private medical insurance for their workers, offering access to better facilities and more comprehensive care.
Social insurance is paid by the employer at a rate of 23.59% of the employee’s monthly wage.
Social Security contributions are capped at EUR 78,100 (2022)
Employees earning more than EUR 78,100 annually are required to pay a solidarity tax. This is paid at the same rate as social security (23.59% for employers; 10.5% for employees).
Employers are entitled to reimbursements for their contributions.