Published: 02.03.2020.
Updated: 10.07.2025.

In Latvia, the structure of the state, the scope of its powers, and the protection of human rights are defined by the Constitution of the Republic of Latvia. Latvia is a democratic parliamentary republic, where sovereign power belongs to the people of Latvia.

Legislative power is vested in the parliament — the Saeima, which consists of 100 members elected for a four-year term. Elections to the Saeima are general, equal, direct, secret, and proportional. All citizens of Latvia who are at least 18 years old on election day have the right to vote. Latvia has a multi-party system, and parliamentary seats are distributed according to the principle of proportional representation.

The head of state is the President, who is elected by the Saeima for a four-year term. The President represents Latvia internationally, appoints Latvian diplomats, receives foreign representatives, signs laws or may send them back to the Saeima for reconsideration, and may also propose new laws.

Executive power is exercised by the Prime Minister and the Cabinet of Ministers. The Cabinet of Ministers is formed by the person invited by the President to do so. The Prime Minister and Cabinet must receive a vote of confidence from the Saeima and are accountable to it.

Judicial authority in Latvia is exercised by district (city) courts, regional courts, and the Supreme Court. Judges are independent and subject only to the law. In addition, the Constitutional Court reviews the compliance of laws and other legal acts with the Constitution.

The police in Latvia include both state and municipal police forces and function as an armed, organized law enforcement body.

The main labour market institution is the State Employment Agency, which promotes employment opportunities for jobseekers and helps employers find suitable employees.

All income received from paid work on which personal income tax must be withheld is subject to social insurance contributions.
The current rate of social insurance contributions is 34.09 % of the employee’s income (if the employee is covered by all forms of social insurance), of which 23.59 % is paid by the employer and 10.5 % by the employee.

In 2025, the maximum monthly non-taxable minimum is €510 per month.

  • Monthly income up to which maximum non-taxable minimum is applied: €510 per month.
  • Monthly income up to which non-taxable minimum will gradually reduce: €1,800 per month.

Non-taxable minimum for a pensioner in 2025: €1,000 per month.

Amount of tax relief for a dependent in 2025: €3,000 per year (€250 per month).

The standard of living in Latvia remains lower than in more economically developed European countries. The average wage is still less competitive compared to the EU average.

In the first quarter of 2025, the average gross monthly wage in Latvia is approximately EUR 1,655 before tax. Wages continue to vary significantly by region — the highest average wages are found in Riga and the Pierīga region, while the lowest average wages are in the Latgale region in Eastern Latvia.

Average consumer prices in Latvia are generally comparable to those in other EU countries; however, some goods and services — such as energy, housing, and fuel — can be relatively more expensive when compared to local incomes.

In cities, most people live in large apartment blocks, while the rural population primarily resides in private houses.

A notable feature of the Latvian apartment market is the significant price difference between Riga, certain towns and parishes near Riga, and other parts of the country.

If you wish to rent a flat or a house, you can check advertisements in the press, online portals, or through estate agencies. Various listings are also available on social media platforms, including offers for rental or sale of homes.

You may also contact your local authority to inquire about housing owned by the municipality available for rent; however, such housing is generally offered only in small towns and villages.

The rental agreement should be in writing and cover all key aspects such as the price, duration, terms of use, repair responsibilities, pets, and more. According to Latvian law, rental agreements may be signed for up to 10 years, as indefinite agreements are not permitted.

On average, renting an apartment in the capital city usually costs between EUR 400 and 850 per month, excluding utilities such as water, electricity, gas, internet, and phone. Rental prices depend on the size, condition, and location of the apartment. Landlords may also request a security deposit or advance payment.

Healthcare services in Latvia are provided by state, municipal, and private medical institutions. State-funded healthcare services can only be accessed at medical institutions that have contracts with the National Health Service.

Information about available healthcare services and patient payments can be obtained from the respective treatment centres, the National Health Service website (www.vmnvd.gov.lv), regional health funds, or by calling the free hotline for residents of Latvia at 00 371 80001234, or 00 371 67045005 for calls from abroad.

The language of instruction at state and local-authority educational institutions in Latvia is Latvian. However, education in other languages is available through private educational institutions as well as ethnic minority education programmes.

The Latvian educational system comprises six levels:

  1. Preschool education
  2. Primary education
  3. Lower secondary education
  4. Upper secondary education
  5. Post-secondary (non-tertiary) education
  6. Tertiary education and postgraduate studies

Preschool education is available to children from 1.5 years of age, with mandatory preparation for primary school starting at age 5. Primary and secondary education are compulsory up to the age of 16. Latvia offers both general and vocational secondary education programmes. Tertiary education is provided by universities, academies and higher education institutions offering bachelor’s, master’s, and doctoral degrees. 

Latvia is a small but beautiful country, rich in cultural heritage and vibrant traditions. It offers many interesting tourist attractions, ranging from historical sites to pristine natural landscapes.

Riga, the capital city, is considered the cultural metropolis of Latvia. It has the largest concentration of scientific, cultural, and entertainment venues in the country, including world-class museums, concert halls, theatres, and art galleries. The historic centre of Riga is a UNESCO World Heritage site, famous for its unique Art Nouveau architecture and medieval Old Town.

Throughout the year, Latvia hosts numerous cultural festivals, music events, and traditional celebrations such as the Song and Dance Festival, Jāņi (Midsummer), and various seasonal fairs that bring together communities and visitors alike. The country’s diverse cultural scene reflects both its rich history and contemporary European influences.

In Latvia, civil unions are registered by Registry Offices, which are monitored by the Ministry of Justice.

Registry Offices register civil acts – marriages, births, deaths; changes of first names, surnames or nationality; additions, corrections or renewals of civil status certificates; issue documents affirming family status for marriages in foreign countries, copies of birth, death and marriage certificates, as well as archival information.

Latvia has a well-developed network of highways that connect the country with all of its neighbouring states, enabling convenient road transit in every direction.

Regular bus routes operate between all major cities and towns, providing reliable intercity transport. In addition, Latvia has an extensive railway network offering passenger train services to many destinations across the country.

Latvia is served by several airports, the largest of which is Riga International Airport. Located approximately 10 km from the city centre, it is the main air travel hub in the Baltic region and offers direct flights to numerous European and international destinations.

Regular ferry services connect the ports of Riga, Liepaja, and Ventspils with several cities in Sweden and Germany, facilitating both passenger and cargo transport across the Baltic Sea.

In Latvia, you can enter into employment once you have reached the age of 15. Employment relationships must be established through a written contract, which is signed by both the employer and the employee. The contract is prepared in two identical copies—one retained by the employee and the other by the employer.

The Labour Law provides for two main types of employment contracts:

  • An indefinite (open-ended) employment contract, which does not specify an end date and is considered the default form of employment.
  • A fixed-term employment contract, which is concluded for a specified period or until completion of certain tasks or projects.

An employment contract must include essential information such as:

  • The job title and duties
  • The place of work
  • The start date of employment
  • The duration (if fixed-term)
  • The amount and payment procedure of wages
  • Working hours and rest periods
  • Provisions regarding termination notice

A probation period may be included in the contract to assess the employee’s suitability for the position. The maximum duration of a probation period is three months. If no probation period is specified in the employment contract, it is deemed to have been concluded without one.

Important: A probation period cannot be applied to employees younger than 18 years of age.

In addition to standard contracts, special regulations apply to:

  • Seasonal work
  • Temporary agency work
  • Apprenticeships and internships
  • Employment under collective agreements

Employers are required to register employment relationships with the State Revenue Service before the employee starts work and to ensure compliance with all applicable labour protection and social insurance regulations.  

Work hours cannot exceed 8 hours/day, 40 hours/week. Employees have a five-day workweek. If a five-day workweek is impossible do to the nature of the work, employers can set a six-day workweek after discussing it with the representatives of the employee. The working day for a six-day workweek cannot be longer than 7 hours. The working day must end earlier in Saturdays. The length of working hours in Saturdays must be set in collective agreements, in-house working regulations or employment contracts.

Overtime is allowed if the employer and the employee have a written agreement. Overtime cannot exceed 8 hours in a seven-day period. An employee that works overtime or in public holidays receives extra payment of no less than 100% of the usual.

In the private sector, an employee and an employer agree on the salary before any work begins. Remuneration for employees in state and local government authorities is determined by the Law on Remuneration of Officials and Employees of State and Local Government Authorities.

Salaries usually depend on the employee’s profession, skills, experience, and the company’s industry. The highest wages in Latvia are typically found in the information and communication technology (ICT) and financial services sectors, as well as for specialists and managers in manufacturing and export-oriented companies.

In Q1 2025, the average gross monthly wage in Latvia is approximately EUR 1,655 before taxes (compared to EUR 1,277 in 2021).

The minimum monthly wage is set by the state. As of 1 January 2025, the minimum wage was increased to EUR 740 per month for full-time work (40 hours per week). The minimum hourly rate is calculated according to the actual number of hours worked in the month.

Employees have the right to be paid at least twice a month, unless there is a mutual agreement between the employer and employee that allows payment once a month.

The employer is responsible for withholding and paying social security contributions for the employee.

Tax rates for employees

Compulsory state social security contributions are 10.5% (employee’s part) and 23.59% (employer’s part).

The non-taxable minimum amount depends on income, and a person must declare their income and entitlements in order to receive any overpaid tax back.

Non‑Taxable Minimum

  • Unified fixed allowance: €510 per month for all employees
  • Phasing out: Full allowance applies up to €500/month income; reduces between €500–€1,800/month

The non-taxable minimum for dependents is EUR 250 per month per dependent.

Every employee is entitled to annual paid leave. This leave cannot be shorter than four full calendar weeks, excluding public holidays.

If the employee and employer agree, annual leave may be divided into parts. However, at least one part must be no shorter than two uninterrupted calendar weeks.

In addition to annual leave, employees are entitled to other types of leave, including:

  • Maternity leave: Granted before and after childbirth, typically lasting 112 calendar days in total, with state-paid benefits.
  • Paternity leave: Ten calendar days granted within two months after the child’s birth.
  • Parental leave: Up to 1.5 years per child, which can be used by either parent or shared, with state-paid benefits.
  • Sick leave: Granted upon presentation of a doctor’s certificate, with compensation according to statutory rules.

Additional leave entitlements may apply depending on employment contracts, collective agreements, or special circumstances.

Employment relationships in Latvia may be terminated only in accordance with the procedures stipulated by the Labour Law. Employment can end in the following cases:

  • By mutual agreement of both parties
  • Upon expiry of a fixed-term employment contract
  • By request of a third party, if legally permitted
  • With notice of termination given by either the employee or the employer

Employment may also be terminated when the employee retires and begins to receive:

  • An old-age pension
  • An early old-age pension
  • A service pension

Termination procedures, notice periods, and severance conditions are regulated by law to protect both employee and employer rights. 

If you wish to be self-employed in Latvia, you must register with the State Revenue Service (SRS) as a taxpayer. An application must be submitted indicating your type of commercial activity, along with copies of documents proving your necessary skills or qualifications. Registration is free of charge, and the certificate is usually issued within 10 working days.

A self-employed person can choose how to pay taxes on their income:

  • Income tax from commercial activity — taxed at the standard progressive personal income tax rates (25.5% on annual income up to €105,300 and 33% on income above that; solidarity tax may apply over €200,000).
  • Patent fee — available for specific small-scale commercial activities (fixed annual or monthly fee depending on the type of activity, income must not exceed the set threshold, usually around €15,000 per year).
  • Micro-enterprise tax (MET) — if eligible, taxed at 25% on turnover up to €25,000 per year and 40% on turnover exceeding €25,000.

To receive social protection, you must register voluntarily with the State Social Insurance Agency (VSAA) and pay social security contributions yourself.

In 2025, the self-employed are obliged to pay mandatory social security contributions at a rate of 31.07% of income (same as previous years, unless simplified regimes apply).

The EU regulations on the coordination of social security systems (No. 883/2004 and No. 987/2009) guarantee that persons who move to another EU country do not lose their rights to social security.

It should be kept in mind that each EU country has its own national legislation and EU regulations are used to coordinate them.

The principles for creation and operation of the social security system in Latvia, the main social rights and responsibilities and the conditions for their implementation are established in the law „On Social Security”.

 The general organizational and financial principles of state social security are established in the law „On State Social Insurance”.

The government policy on social insurance and state social allowances is implemented by State Social Insurance Agency. It also administrates state pension schemes. 

Law on State Social Allowances establishes the types of social allowance, who have rights to state social allowances, the conditions for granting them, the procedure of granting and paying as well as the procedure for appeals concerning decisions on social allowances.

Social services and social assistance are available to citizens and aliens of Latvia, citizens of other countries and stateless persons who have received a personal code and who are residents of Latvia except persons who have received a temporary residence permit. 

Additional information on social security rights is available in the website of the European Commission: http://ec.europa.eu/social/main.jsp?catId=1117&langId=en.

A useful tool for comparison of social security systems of different EU countries: http://www.missoc.org/MISSOC/INFORMATIONBASE/COMPARATIVETABLES/MISSOCDATABASE/comparativeTableSearch.jsp