Latvia

• New Year’s Day
• Good Friday
• Easter Monday
• Labour Day
• Declaration of Independence Day
• Declaration of Independence Day Holiday
• Midsummer Eve
• St John’s Day
• National Day
• Christmas Eve
• Christmas Day
• Second Day of Christmas
• New Year’s Eve

Working Hours

Employees can work up to eight hours a day, or 40 hours per week.

If an employee works less than eight (8) hours on one day, they can work up to nine (9) hours on another day, as long as the total weekly hours do not exceed 40.

Minimum Wage

EUR 620 per month.

Employee Tax

Annual income	Tax rate
Up to EUR 20,004	20%
EUR 20,005 - 78,100	25%
More than EUR 78,100	31%
Social security contribution	9.35% - 29.36%*

*Actual amount depends on employee and employer location.

Bonuses

There are no statutory bonus schemes in Latvia.

Employment contracts in Latvia must be written.

As a general rule, contracts of employment are concluded for an unspecified period of time.

Fixed-term contracts are only permitted in restricted specific circumstances.

The term of a contract of employment entered into for a specified period may not exceed five (5) years (including extensions of the term).

Annual Leave

Minimum of four calendar weeks’ paid holiday per year.

Sick Leave

Employers must pay employees 75% of their wage for the second and third day of sick leave. This rises to 80% from the fourth to the tenth day. From the 11th day of absence, employees can claim pay from the state social insurance agency.

Parental Leave

• Maternity leave: at least 112 days' paid leave.
• Paternity leave: ten days' paid leave.
• Parental leave: paid parental leave is available for 18 months.

Termination Process

Employers in Latvia can terminate a contract, provided they give notice in line with legal requirements.

Other grounds for termination include:

• Mutual consent
• Parental request (if the employee is under 18)
• Fixed-term contract expiry

Employees can also terminate the contract by giving notice in line with their contract terms.

Severance Pay

Severance rates are often stipulated in collective agreements or individual contracts. Statutory severance pay is equal to one month’s salary for less than five years of service, rising to two months’ salary after five years, three months after ten years, and four months after 20 years.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions.  The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.