Good to know
In Latvia, severance pay is determined based on the tenure of employees, and the amount can vary between a period of a minimum of 1 month’s wages to a maximum of 4 months’ wages, reflecting their years of service to the company.
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The minimum monthly salary is established by the Cabinet, and it currently stands at 620 EUR per month.
Standard Working Hours
The regular working hours are 8 hours per day and 40 hours per week. Any work performed beyond these standard hours is considered overtime and is compensated at twice the rate of regular wages. The standard working week is Monday – Friday.
The amount of overtime work cannot exceed an average of 8 hours within a 7-day period, which is calculated over a reference period of up to 4 months. These regulations ensure fair compensation and reasonable limits on overtime work for employees.
The payroll frequency in Latvia is monthly with payments made by the last working day of the month. However, payroll frequencies can vary depending on the employer and the terms of the employment contract. There are also no requirements to provide a 13th salary.
Paid time off
Employees in Latvia are eligible for annual leave if they have been employed continuously for at least 6 months. This leave period must not be less than 20 days (equivalent to 4 calendar weeks), excluding public holidays. However, employees under 18 years of age are entitled to one month of annual paid leave.
Employees have the right to 10 days of employer paid sick leave. During this period, they receive 75% of their salary for 2-3 days, and 80% of their salary to day 10. From the 11th day onwards, employees are required to present a medical certificate to be eligible for social support in the form of sick pay. This ensures that employees receive financial support during illness, both from their employer initially and then from the social support system if needed.
Maternity leave lasts for 126 calendar days (18 weeks) and begins at least 56 calendar days (8 weeks) before the expected delivery date. However, the leave can start earlier if the employee’s health requires it or if she has multiple pregnancies.
During the first part of maternity leave (56 or 70 calendar days), the employee receives 100% of her average monthly salary. For the second part of the maternity leave (56 or 70 calendar days after the child’s birth), the employee receives 80% of her average monthly salary.
If there are multiple births (twins or more) or health issues during pregnancy, childbirth, or post-natal period, the maternity leave may be extended by an additional 14 calendar days (2 weeks) with 100% of the average monthly salary paid during this period.
The father is entitled to receive 100.00% of the regular salary and compulsory paternity leave of 10 days within 5 months of the child’s birth.
Termination of Employment
Employers have the option to terminate a fixed-term contract citing reasons such as business needs, personal reasons, or worker misconduct. This termination process necessitates providing notice and a written explanation for the decision. In cases of misconduct, the employer must issue a warning and allow the employee an opportunity to clarify their actions.
The notice period for terminating an employment contract is generally determined by the length of employment and the provisions in the individual employment contract or collective agreement. The notice periods are for less than 1 year of employment, 1 month notice is typically required. For one to 5 years of employment , 2 months notice is usually necessary. For 5 or more years of employment, 3 months notice is typically required.
The probationary period is commonly included in employment contracts and typically lasts for a maximum of 3 months. If either party decides to terminate the employment relationship during the probation period, a shorter notice period may apply. The duration of the probation period can vary based on individual employment contracts and company policies.
Latvia is a member of the Schengen Area, which allows for easier travel within participating European countries. For citizens of certain countries, Latvia allows visa-free entry for short stays, typically up to 90 days within a 180-day period, for tourism, business, or visiting purposes.
For stays longer than the permitted visa-free duration or for purposes such as work, study, or residency, a visa is required. The specific visa requirements, application process, and types of visas available vary depending on the purpose of the visit and the applicant’s nationality.
The Standard rate of VAT in Latvia is 21.00%.