Employer of record in Latvia: costs and rules
We may earn a commission when you sign up through some links on this page. Commissions never change our scores or the order of our lists. How we make money.
Latvia charges employers 23.59% of gross pay as their share of mandatory state social insurance contributions (VSAOI), collected by the State Revenue Service; an EOR adds a fee that runs from $199 (Payoneer Workforce Management, formerly Skuad) to Oyster's $699 a month (checked October 2026). The rule US companies trip over is probation: the Labor Law allows at most 3 months, and only 1 month on a fixed-term contract of up to 6 months, so a 90-day trial on a short project contract is not available.
An employer of record in Latvia is a Latvian-registered company that employs your hire under the Latvian Labor Law, withholds and pays VSAOI and income tax to the State Revenue Service, and keeps the payroll records, while you decide what the person works on.
- Employer cost on a sample salary
- 23.59%on top of gross pay
- Minimum annual leave
- At least 4 calendar weeks a…
- Currency
- EUR
On this page
Latvian rules a US employer should know first
Latvia keeps payroll simple on the contribution side and strict on contract terms.
One contribution, split two ways
VSAOI totals 34.09% of gross pay: 23.59% from the employer and 10.50% withheld from the employee, according to the State Social Insurance Agency (VSAA). One percentage point of the total funds healthcare.
A ceiling, then a different tax
Contributions apply up to a maximum contribution object of EUR 105,300 a year in 2026, the same as 2025. Pay above that is not free of charge: it falls under the solidarity tax administered by the State Revenue Service. For a senior hire near or above the ceiling, ask your EOR how it bills that part.
Probation by contract type
Section 46 of the Labor Law caps probation at 3 months, or up to 6 months under a trade union collective agreement. Fixed-term contracts get less: 1 month for contracts up to 6 months and 2 months for contracts up to 1 year.
Leave and pay floor
Employees get at least 4 calendar weeks of paid leave a year, not counting public holidays. The pay floor for 2026 is EUR 780 monthly, implied by the VSAA's minimum contribution object of 12 x EUR 780 = EUR 9,360.
Our Labor Law reading stopped at section 76, so dismissal notice, redundancy pay, the holiday list, pay dates and the per-employee business risk state fee remain unverified by us. Have the EOR spell each out and compare it with the law on likumi.lv.
Employment costs and rules in Latvia
| Item | Latvia |
|---|---|
| Employer social contributions | 23.59% |
| What the employer pays | State social insurance (VSAOI) employer 23.59% (employee 10.50%, total 34.09%, of which 1 point funds healthcare). Business risk state fee per employee not confirmed today |
| Caps and ceilings | Maximum contribution object EUR 105,300 a year in 2026 (same as 2025). Pay above the cap is subject to the solidarity tax (administered by the State Revenue Service) |
| Employee contributions | 10.50% |
| Minimum wage | EUR 780 a month (implied by the State Social Insurance Agency 2026 minimum object of 12 x EUR 780 = EUR 9,360) |
| Annual leave | At least 4 calendar weeks a year, not counting public holidays (Labor Law) |
| Probation | 3 months (up to 6 months under a trade union collective agreement); 1 month for fixed-term contracts up to 6 months, 2 months for up to 1 year (Labor Law section 46) |
| Sample salary used | EUR 34,000 a year |
| Employer cost on that salary | 23.59% |
Checked October 16, 2026. Source type: official. Sources are listed at the end of this page.
What an EOR charges to employ someone in Latvia
| Provider | EOR fee per employee per month | Deposit | Entity model (provider claim) |
|---|---|---|---|
| Payoneer Workforce Management | from $199 | None listed | Claims owned entities across APAC, MEA, Europe and the Americas |
| Pebl | $399 | Not listed | About 90% of employees on Pebl-owned entities |
| Playroll | from $399 | One month's salary per employee, refundable | No clear owned-entity claim |
| Rivermate | $319 to $639 | Not stated | Claims 38 owned entities |
| Multiplier | $459 (annual) or $499 (monthly) | Sized from costs, fees and notice period (method published, no fixed amount) | Claims owned entities in 160+ countries |
| Rippling EOR | Quote only (third-party reference: $499) | Not listed | Claims Rippling entities; no partner mention |
| Deel | $599 | Not stated by Deel | Claims owned entities in 130+ countries |
| Remote | from $599 | Waived for startups; otherwise not stated | Claims 100% owned entities in 90+ countries |
| Atlas | from $599 | Not published | Claims owned entities in 160+ countries |
| Papaya Global | from $650 | Refundable deposit, amount not stated | Uses in-country partners |
| Oyster | $699 | At least one month of total service cost, refundable (per its terms) | Owned entities and partners |
| Globalization Partners (G-P) | Quote only | Not stated | Information page claims 100+ wholly owned entities |
Source: each provider’s pricing page, checked October 16, 2026. Fees are the provider’s charge on top of salary and the employer contributions above. Some providers adjust prices by country.
What a EUR 34,000 Latvian salary costs
For Latvia we price a EUR 34,000 salary (EUR 2,833.33 monthly), less than a third of the EUR 105,300 ceiling.
| Item | Per month | Per year |
|---|---|---|
| Gross salary | EUR 2,833.33 | EUR 34,000.00 |
| Employer VSAOI, 23.59% | EUR 668.38 | EUR 8,020.60 |
| Employer cost before the EOR fee | EUR 3,501.72 | EUR 42,020.60 |
| EOR fee (billed in USD) | $599 | $7,188 |
VSAOI rate and cap: VSAA and State Revenue Service. Fee: Deel and Remote $599 list price, Oct 16, 2026. Checked Oct 2026.
VSAOI works out at EUR 8,020.60 (23.59% of 34,000). Providers bill the fee in dollars: $7,188 a year at $599, $4,788 at $399 (Pebl, Playroll) or $8,388 at $699 (Oyster). At the ECB reference rate of 1.1253 dollars per euro (October 16, 2026), $7,188 is EUR 6,387.63, so the $599 case totals EUR 48,408.23 a year. The employee keeps their gross pay minus 10.50% VSAOI (EUR 3,570 a year) and income tax.
A minimum-wage hire at EUR 780 a month costs the employer EUR 964.00 a month before the fee (780 x 1.2359). Budget separately for a deposit (Oyster's terms: no less than a month of total service cost; Playroll: a month of salary) and for the spread on converting dollars. For other salaries, try the cost calculator for international hires.
Next door the split is reversed: Lithuania's employer share is 1.77% because the employee carries 19.5%, so gross salaries are not comparable across the border.
Latvian contractors and when they become employees
A Latvian contractor saves you the 23.59% VSAOI and the EOR fee. That saving disappears, with back contributions, if a full-time, supervised role is treated as employment. Keep contractors for defined projects, run through contractor platforms or a contractor of record that shoulders the classification question.
How the providers compare for Latvia
Score order, out of 100: Multiplier 79, Oyster 64, Remote 62, Playroll 60, Pebl 57, Deel 54 (scoring method). Multiplier asks $499 on monthly billing and says it hires through entities it owns everywhere; Oyster's $699 includes onboarding and offboarding at no extra charge. There is no public Latvian price list from anyone, and Multiplier admits around 11% of countries cost more, so request a Latvian quote.
Because a short fixed-term probation is easy to overrun, ask how the provider drafts probation and fixed-term clauses. Background on each: Deel, Remote, Oyster and the best EOR list.
A Latvian SIA versus paying an EOR
A team of four on a $599 EOR plan pays $28,752 a year in fees. A Latvian company needs State Revenue Service registration and a payroll provider. Our EOR or entity guide sets out the break-even questions.
Frequently asked questions
What is the Latvian employer VSAOI rate for 2026?
Does Latvian VSAOI stop at a ceiling?
What is the longest probation allowed in Latvia?
How much is Latvia's 2026 minimum wage?
How much annual leave do Latvian employees get?
Sources (12)
- Pebl: Pebl EOR pricing (checked Oct 16, 2026)
- Playroll: Playroll pricing (checked Oct 16, 2026)
- Multiplier: Multiplier pricing (checked Oct 16, 2026)
- Deel: Deel pricing (checked Oct 16, 2026)
- Remote: Remote pricing (checked Oct 16, 2026)
- Oyster: Oyster pricing (checked Oct 16, 2026)
- Payoneer Workforce Management (formerly Skuad): Skuad pricing (checked Oct 16, 2026)
- Oyster: Oyster terms of service (EOR deposit) (checked Oct 16, 2026)
- European Central Bank: Euro foreign exchange reference rates (rate for Oct 16, 2026)
- vsaa.gov.lv/en/contributions-0 (checked October 16, 2026)
- vid.gov.lv/en/mandatory-state-social-insurance-contributions (checked October 16, 2026)
- likumi.lv/ta/en/en/id/26019-labour-law (checked October 16, 2026)
This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.