Working and hiring in Latvia: all you need to know

This guide explains the main rules of the Latvian Labour Law (Darba likums, “DL”) and payroll taxes in plain language. The first part is for people who work in Latvia. The second part is for companies that hire in Latvia for the first time or post workers here. The rules apply to everyone employed in Latvia, whatever their nationality.

Working hours

• Normal working time is up to 8 hours a day and 40 hours a week (DL Section 131(1)).
• The standard is a five-day week. A six-day week is possible, but then a day may not be longer than 7 hours (DL Section 133).
• If you work less on one day, another day of the same week may be up to 1 hour longer — the week still may not exceed 40 hours (DL Section 131(2)).
• The day before a public holiday is 1 hour shorter (DL Section 135).
• In work with special risk the limit is 7 hours a day and 35 hours a week (DL Section 131(3)).

Part-time work is any agreed working time shorter than normal. The contract must state the exact number of hours. Work beyond the agreed hours needs a written agreement (DL Section 134).

Overtime

Overtime is work beyond normal working time — more than 8 hours a day or 40 hours a week (DL Section 136(1)).

• It is allowed only if the employee and the employer agree in writing (DL Section 136(2)). Without consent, only in emergencies and a few other exceptional cases (DL Section 136(3)).
• On average it may not exceed 8 hours per 7 days, calculated over a period of up to 4 months (DL Section 136(5)). Together with normal time that is on average 48 hours a week.
• Overtime is paid with at least 100 % extra on top of the rate (DL Section 68(1)). A collective agreement or the contract may set more.
• Instead of the extra pay, the parties may agree on paid time off (DL Section 136(9)).
• People under 18 may not work overtime (DL Section 136(6)).

Breaks and rest

• Break: if the working day is longer than 6 hours, you get a break of at least 30 minutes, no later than 4 hours after starting work. The break is normally unpaid, unless the contract says otherwise or you are not allowed to leave your workplace (DL Section 145).
• Daily rest: at least 12 hours in a row in every 24-hour period (DL Section 142(1)).
• Weekly rest: at least 42 hours in a row in every 7-day period. In a five-day week you have 2 days off, normally in a row; Sunday is the general day of rest (DL Section 143).

Night, weekend and public holiday work

• Night time is 22:00–06:00. Work that lasts more than 2 hours at night is night work (DL Section 138(1)). It is paid with at least 50 % extra (DL Section 67(1)).
• Work on your weekly rest day can be ordered in writing only in exceptional cases, and you must get equivalent rest in return (DL Section 143(4)).
• Public holidays are days off. Where work must run without interruption, you may work, and you get at least 100 % extra (DL Sections 68 and 144).

Shift work and summed working time

In shift work a shift may not be longer than the normal working day, and you may not work two shifts in a row. The employer must show you the shift schedule at least 1 month before it starts (DL Section 139).

Where the work cannot fit into 8 hours a day and 40 hours a week (hospitals, security, shops, transport), the employer can set summed working time (summētais darba laiks). Days can then be longer, but over the reference period you may not work more than the normal hours (DL Section 140):

• the reference period is 1 month, up to 3 months by the contract, or up to 12 months by a collective agreement;
• you may never work more than 24 hours in a row or 56 hours a week;
• hours above the norm of the reference period are overtime.

Time records

The employer must precisely record the hours each employee works, including overtime, night work, work on rest days and public holidays (DL Section 137(1)). You have the right to check these records (DL Section 137(3)). The payslip must show the hours worked, including overtime and night hours (DL Section 71).

Tip: keep your own simple record of start and end times. It helps if there is ever a dispute.

Annual leave

• Every employee gets at least 4 calendar weeks of paid annual leave a year, not counting public holidays (DL Section 149(1)).
• One part of the leave must be at least 2 weeks without a break (DL Section 149(2)).
• In the first year, you can take leave after 6 months of continuous work (DL Section 150(3)).
• Parents get extra leave: 3 working days with 3 or more children under 16 or a disabled child under 18, and at least 1 day for other parents of children under 14 (DL Section 151(1)).

Sick leave

If you fall ill and cannot work, the doctor issues an electronic sick-leave certificate (darbnespējas lapa). Then:

• day 1 is not paid;
• days 2–3: the employer pays at least 75 % of your average earnings;
• days 4–9: the employer pays at least 80 %;
• from day 10, the State Social Insurance Agency (VSAA) pays sickness benefit.

(Law on Maternity and Sickness Insurance, Sections 13 and 36.)

Contract, probation and notice

• The employment contract must be in writing and signed before work starts (DL Section 40(1)). It must state, among other things, the job, the workplace, the pay and pay dates, and the agreed daily or weekly working time (DL Section 40(2)).
• The contract is concluded in Latvian. If you do not speak Latvian well enough, the employer must inform you in writing, in a language you understand, about the terms of the contract (DL Section 40(10)).
• Probation may not be longer than 3 months (up to 6 months only by a collective agreement). In a fixed-term contract of up to 6 months it is at most 1 month (DL Section 46).
• During probation either party may end the contract with 3 days’ written notice (DL Section 47(1)).
• After probation, the employee may resign with 1 month’s written notice, unless a shorter period is agreed. With an important reason, the employee may leave immediately (DL Section 100).

Pay and minimum wage

• The minimum monthly wage in 2026 is 780 EUR gross for full-time work (Cabinet Regulation No. 656).
• Salary is paid at least twice a month, unless the parties agree on payment once a month (DL Section 69(1)).
• Night work, overtime and public holiday work are paid with the supplements described above.

Taxes on your salary in 2026

Taxes are withheld by the employer from your gross salary:

• Social security contributions (VSAOI): 10.5 % of the gross salary (Law on State Social Insurance, Section 18).
• Personal income tax (IIN): 25.5 % each month (IIN Law, Section 15(3)). It is calculated after deducting your social security contributions and, if you have submitted your tax book (algas nodokļa grāmatiņa) to this employer, the non-taxable minimum of 550 EUR a month (IIN Law, Sections 10, 12 and 17; the 2026 amount is in the Transitional Provisions, point 197).
• Relief for a dependant: 250 EUR a month for each dependant (IIN Law, Section 13).

You can have only one tax book, at one employer (IIN Law, Section 6). The part of annual income above 105 300 EUR is taxed at 33 %, and the part of total annual income above 200 000 EUR at an extra 3 %; this is settled through the annual tax return (IIN Law, Sections 15 and 15.1).

Tax residency. You are a Latvian tax resident if your declared place of residence is in Latvia or you stay in Latvia 183 days or more in any 12-month period that starts or ends in the tax year (Law on Taxes and Duties, Section 14(2)). A non-resident pays 25.5 % income tax on salary from work in Latvia but gets no non-taxable minimum and no reliefs. The exception is residents of other EU/EEA countries who earn more than 75 % of their income in Latvia (IIN Law, Sections 12 and 13).

Permission to work. Citizens of the EU, EEA and Switzerland may start work as soon as the contract is signed. If they stay more than 3 months, they must register with the Office of Citizenship and Migration Affairs (PMLP). Citizens of other countries need a right to work. Before hiring them, the employer must register the vacancy with the State Employment Agency (NVA), and it must stay open for at least 10 working days (PMLP).

For companies new to Latvia

If you are used to the labour law of another country, these are the points that most often surprise foreign employers in Latvia.

Before the first employee starts

1. Sign a written contract before work starts, in Latvian, with all the terms required by DL Section 40(2). If the employee does not speak Latvian well enough, give them written information about the terms in a language they understand (DL Section 40(10)).
2. Register the employee with the State Revenue Service (VID) no later than 1 hour before they start work (Law on State Social Insurance, Section 13; Cabinet Regulation No. 827, point 8.1).
3. Assess the work environment risks and instruct the employee on labour protection when they start, in a way the employee understands (Labour Protection Law, Sections 8 and 14). Where the work involves harmful factors, arrange mandatory health checks at the employer’s cost (Section 15).
4. Set up working time records for every employee from day one (DL Section 137).
5. With 10 or more employees, adopt work rules (darba kārtības noteikumi) within 2 months of starting operations. The rules must cover working hours and breaks, pay dates and leave procedure, and every employee must be made familiar with them (DL Section 55).

Payroll and taxes

• Withhold the employee’s social security contributions (10.5 %) and income tax (25.5 %) and pay them together with the employer’s contributions of 23.59 % (Law on State Social Insurance, Sections 18 and 21).
• Submit the monthly employer report to VID by the 17th of the following month (Cabinet Regulation No. 827, point 21).
• Pay social security contributions by the 23rd of the following month and income tax by the 23rd of the month the salary is paid (Law on State Social Insurance, Section 21(1); IIN Law, Section 17(5)).
• Minimum contributions: if an employee’s salary for a quarter is below 3 minimum wages, the employer pays contributions on the difference from its own funds. Some groups are exempt, for example pensioners and full-time students under 24 (Law on State Social Insurance, Section 20.4).
• Pay the salary at least twice a month, or once a month if agreed (DL Section 69).

Working time: what you must organise

• Overtime only with written consent, paid at least +100 %, on average no more than 8 hours per 7 days (DL Sections 68 and 136).
• Night work at least +50 % (DL Section 67), public holiday work at least +100 % (DL Section 68).
• Shift schedules at least 1 month in advance; no two shifts in a row (DL Section 139).
• Rest: 12 hours daily, 42 hours weekly, a break after at most 4 hours (DL Sections 142, 143 and 145).
• Precise time records, including overtime, night and holiday hours; the employee may check them (DL Section 137).

Ending employment

There is no at-will employment in Latvia. An employer may give notice only on one of the grounds listed in DL Section 101 — related to the employee’s conduct or ability, or economic, organisational or technological reasons such as redundancy. Notice must be in writing.

• Notice period: depending on the ground, immediate, 10 days or 1 month; 2 months for employees with disabilities in some cases (DL Section 103).
• Severance pay for grounds such as redundancy: 1 month’s average earnings for less than 5 years of service, 2 months for 5–10 years, 3 months for 10–20 years, 4 months for more than 20 years (DL Section 112).

Posting workers to Latvia

An employer from another EU/EEA country that posts workers to Latvia must (DL Section 14.1):

• notify VDI electronically before the posting — at posting.vdi.gov.lv, available in English;
• report changes within 3 working days and appoint a contact person in Latvia;
• keep the contract, payslips and working time records and make them available for 2 years after the posting;
• apply Latvian rules on maximum working time and minimum rest, minimum paid leave, pay including overtime, night and holiday supplements, labour protection and equal treatment.

After 12 months (18 months with a justified notification), almost all Latvian employment terms apply. The Latvian client must not let a posted worker start work without proof that VDI has been notified (DL Section 14(2.6)).

Fines

The State Labour Inspectorate (VDI) can fine employers (1 fine unit = 5 EUR):

How Latvia compares with the EU minimum

All EU countries must follow the Working Time Directive 2003/88/EC. It sets minimum standards; each country may give workers more. Latvia gives more in several areas:

Where to get help

If an employer does not follow the rules, contact the State Labour Inspectorate (Valsts darba inspekcija, VDI):

• consultations: +371 67186522 (Mon–Thu 8:00–17:00, Fri 8:00–14:30);
• e-mail: vdi@vdi.gov.lv;
• address: Krišjāņa Valdemāra iela 38 k-1, Riga.

VDI gives consultations to employees and employers and checks employers. It can order an employer to fix violations and impose fines. State institutions accept written documents in Latvian; a document in another language needs a certified translation (State Language Law, Section 10).

For unpaid wages you can also go to court. Claims about pay must generally be brought within 2 years (DL Section 31) — do not miss this deadline while you wait for an answer from VDI.

The employer may not punish an employee for using their rights (DL Section 9).