Salary Calculator
Latvia
Native Teams’ payroll calculator helps businesses estimate salaries and employment costs in Latvia and over 85 countries worldwide. Whether you're assessing the cost of hiring employees or managing payroll for your team, our tool provides accurate calculations to support informed decision-making.
The process is simple—select Latvia as the country of employment, choose the employment type, and enter salary details. The calculator will instantly generate a detailed breakdown of net and gross salaries, offering insights into tax liabilities, health and pension contributions, and other mandatory deductions, ensuring compliance and streamlined payroll management.
We've noticed that you are interested in Payroll in Latvia!
Please fill up your email address and get free access to your salary breakdown and a localised work contract template.
How does a salary calculator for Latvia work?
With our payroll calculator tailored for Latvia, businesses can easily estimate employee net salaries while ensuring compliance with local tax regulations and mandatory contributions.
Simply enter the employee’s gross salary, and the calculator will automatically deduct both employer and employee contributions, including personal income tax.
After applying all statutory deductions, the calculator provides a clear breakdown of the net salary—helping businesses accurately assess payroll costs and streamline salary management in Latvia
What is the salary cost in Latvia?
The total cost of salary in Latvia includes elements like contributions by both the employee and employer and an income tax rate.
The gross salary is the amount before these deductions are made and serves as the base for all further calculations. Employers must contribute 23.59% for social tax, while employees’ portion for social tax is 10.5%. In addition to this, employees are also subject to a personal income tax, which is calculated progressively based on the individual’s annual income.
How much tax do you pay in Latvia?
Employees in Latvia must pay personal income tax which is calculated progressively, depending on the total annual income of the individual. The income tax in Latvia is currently calculated as follows:
-Income up to €20,004: Tax rate of 20%.
-Income from €20,005 to €78,100: Tax rate of 23%.
-Income over €78,101: Tax rate of 31%.
*Please note that these rates can vary based on legislative changes.
What are the mandatory employee benefits in Latvia?
Employed individuals in Latvia are entitled to a variety of employment benefits, mostly covered by the social tax deducted from their salaries. The social tax budget in Latvia provides rights for healthcare, old age pension, disability pension, unemployment benefits, and paid leave such as annual leave, maternity/paternity leave, sick leave, and others.
Are there any other benefits or additional expenses?
Besides the mandatory benefits provided by social tax payments, some employers in Latvia incur additional costs for providing extra benefits for their employees.
These benefits can include private health insurance for services that aren’t covered in public healthcare, professional development opportunities like paid training, courses, and mentoring, financial incentives like travel/meal allowances, bonuses, and private pension schemes, and life or accident insurance to protect employees from unexpected events. Such benefits are typically provided to enhance the satisfaction of the current employees and attract talent into the organisation.
What is the difference between gross and net in the Latvia salary calculator?
The terms gross and net salary in Latvia are different in reference to the stages of the individual’s income before and after taxes and deductions.
The gross salary is the total salary amount that is agreed upon between the employer and the employee before any taxes, social security contributions, and deductions are made. The gross salary includes all taxable income components, such as the base salary, bonuses, and other allowances.
On the other hand, the net salary is the amount the employee receives after all mandatory deductions are made from the gross salary. In simple terms, the net salary is the actual amount the employee takes home for personal use, while the gross salary is the total cost of employment.
How can Native Teams help with employment, salary and taxes in Latvia?
Native Teams offers an all-in-one solution for businesses managing employment, payroll, and tax compliance in Latvia. Our platform simplifies salary processing, tax obligations, social security contributions, and employee benefits administration—ensuring full compliance with Latvian labour laws.
With the support of our expert tax and legal team, businesses can efficiently handle administrative tasks, navigate compliance requirements, and focus on growth while ensuring all legal obligations are met seamlessly.
