Employer of Record (EOR) in Latvia

Hire in Latvia in days, with no entity and no exposure to getting Darba likums compliance wrong. We place you with the right vetted EOR partner, at pricing you will not get going direct, and stay on your side for the life of the relationship.

  • Independent advice
  • Vetted partners
  • Operational in days

What an Employer of Record does for you in Latvia

An Employer of Record is a company that legally employs your Latvian staff on your behalf. You choose the person and direct their work day to day. The EOR is the legal employer on paper, which is what lets you build a team in Latvia without forming your own company.

In practice the EOR partner takes on everything that needs a Latvian legal entity and local expertise: a compliant employment contract under the Darba likums, monthly payroll withholding of income tax and the VSAOI state social insurance contribution, statutory filings to the State Revenue Service (VID) and the State Social Insurance Agency (VSAA), statutory benefits and leave, and compliant onboarding and lawful exits with the correct statutory notice, since Latvia is not at-will. You get a working team in days. The EOR carries the legal and compliance weight; you carry the commercial relationship. The only question worth spending time on is which partner is genuinely strong in Latvia, and that is the question we answer for you.

01

Legal employer, on paper

A compliant Latvian employment contract under the Darba likums, with all statutory terms correct from day one.

02

Compliant from day one

Monthly payroll, income tax withholding, and the VSAOI social insurance contribution, with statutory filings made to the State Revenue Service (VID) and the State Social Insurance Agency (VSAA).

03

No entity required

Statutory benefits, annual leave, notice and severance under the Darba likums, and lawful onboarding and exits. You get a working team in days; the EOR carries the legal weight.

How it works: four steps to a compliant hire

From first call to a compliant Latvian hire at work, usually in days.

01 — Scope & quote

We map the role, salary, and start date, and come back with a clear all-in monthly cost. No guesswork, no hidden extras.

02 — Compliant contract

Your employment contract is drafted to Latvian standards by the partner, and we sanity-check the terms and pricing before you sign. Compliant from day one.

03 — Onboard in days

A correct Latvian contract is issued under the Darba likums, with all statutory terms from day one. Your hire can start in days.

04 — Payroll & compliance run

Income tax and the VSAOI contribution calculated and withheld, payslips issued, statutory filings made to the State Revenue Service (VID) and the State Social Insurance Agency (VSAA). You direct the work; the compliance just runs.

What EOR in Latvia costs

Two parts: the statutory cost of employing someone, and the EOR partner fee. In Latvia the statutory employer cost is one clean number, not a set of schemes to add up, so it is unusually easy to make transparent before you commit.

Employer social insurance

23.59% of gross salary, the full employer share of the VSAOI mandatory state social insurance contribution, collected by a single agency (VSAA) rather than split across separate pension, health, and unemployment schemes. Predictable and fully costed before you commit.

Minimum wage (2026)

EUR 780 per month gross (about EUR 4.50 per hour) for full-time work, effective 1 January 2026, one national rate with no regional variation.

Income tax (employee)

Progressive personal income tax at 25.5% up to EUR 105,300 of annual income, 33% above that, plus a 3% solidarity surcharge on the portion above EUR 200,000. Withheld monthly at source from the employee’s pay. Borne by the employee, not added to your cost.

EOR partner fee

A transparent per-employee monthly fee. We benchmark across our vetted network, typically 15 to 25% below going direct, and renegotiate for you at renewal.

Why run it through Bradford Jacobs

We know which EOR partners are genuinely strong in Latvia, and how each prices its service. We place you with the right one, at pricing you will not get going direct, and stay on your side for the life of the relationship.

Independent, not a single provider

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

Pricing you can’t get direct

Latvia’s employer cost is a single clean rate, which makes it tempting to assume the whole engagement is equally simple to price. The corporate-tax timing and the recent income-tax reform are where a generic quote goes wrong. We benchmark across our partner network for rates typically 15 to 25% below going direct, and renegotiate on your behalf at renewal.

  • 15-25% below direct
  • Network benchmarking
  • Renegotiated for you

Straight to the top when it matters

When something needs resolving, and in global employment it sometimes does, you come to us. We escalate directly, past the helpdesk, to people who can actually move it.

  • Direct escalation
  • No support queues
  • Named account contact

Two decades across markets

Two decades placing and managing EOR arrangements across global markets, with the local knowledge of the Darba likums, the VSAOI contribution, and Latvian termination rules that keeps you compliant.

  • EOR specialists
  • Darba likums expertise
  • Risk removed

Built for conversion to your own entity

Most companies use EOR for 12 to 24 months, then move to their own Latvian SIA. We plan that crossover and manage the transition when the economics justify it.

  • EOR to entity path
  • Transition managed
  • Crossover planning

Why an EOR is the fastest compliant way into Latvia

Two things slow foreign employers down in Latvia: the time to incorporate and register with the State Revenue Service, and the risk of getting the Darba likums’s notice, severance, and dismissal rules wrong. An EOR removes both.

Working time, leave & contracts

Compliance handled under one national Darba likums. Latvian employment law sets statutory notice bands running from 3 days in probation to 1 month depending on the dismissal ground, service-banded severance, and mandatory annual leave of at least 4 calendar weeks. An EOR carries all of it correctly from day one, so a wrong assumption never becomes a liability.

Operational in days, not weeks

Registering a Latvian entity typically takes one to two weeks once documents are ready, and you cannot legally employ anyone until the registration and tax registration complete. An EOR removes that wait entirely: a compliant Latvian contract is issued and your hire starts in days. You prove the market first, then incorporate later only if the headcount justifies it. This is the real value of EOR in Latvia: speed into a eurozone market, with the compliance and the corporate-tax timing carried by an expert.

Everything your Latvian EOR covers

One transparent monthly fee per employee covers all of this. No hidden extras.

Compliant Latvian contract

A compliant Latvian employment contract under the Darba likums, issued and maintained for you.

Payroll & VSAOI

Monthly payroll run, with income tax and the VSAOI social insurance contribution calculated, withheld, and filed correctly each month.

Statutory benefits

All statutory benefits administered: paid annual leave (minimum 4 calendar weeks), public holidays, maternity benefit (140 calendar days, VSAA-paid) and paternity benefit (10 working days, VSAA-paid), and statutory notice on exit, since Latvia is not at-will. The employee’s own VSAOI social insurance contribution runs at 10.50% of gross salary, deducted from pay, not billed to you.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on how Employer of Record works in Latvia.

Is my hire employed by Bradford Jacobs or by me?

Legally, your hire is employed by the Latvian EOR partner we place you with, which is what keeps you compliant without an entity. Day to day they work for you: you set the work, the goals, the relationship. You get the team; the partner carries the legal weight.

Usually within days once the role and salary are agreed, with a compliant Latvian contract from day one. Compare that to the one to two weeks a Latvian entity registration can take, during which you cannot legally employ anyone through that entity.

23.59% of gross salary, the full employer VSAOI social insurance contribution, in one clean rate rather than several schemes to add up. Add the transparent EOR partner fee and you have your all-in cost.

Yes, when done properly. The EOR is a real Latvian legal employer meeting all Darba likums, VSAOI, and tax obligations. The risk is using an under-resourced partner, which is exactly why we place you with vetted partners and stay on your side for the life of the relationship.

The compliant contract, monthly payroll (income tax and the VSAOI withholding), employer contributions, statutory benefits and leave administration, and ongoing HR compliance. We give you one all-in monthly figure up front, with nothing added later.

Yes, and most companies do once the headcount and permanence justify it. We manage the transition from EOR to your own Latvian SIA, and can support the incorporation itself. Most use EOR for 12 to 24 months first.

Ready to hire in Latvia?

Tell us the role and we will come back with a compliant, all-in monthly cost and the right partner, usually within a day. No entity, no lock-in, no pitch, just the fastest compliant way to get your person working in Latvia.

Tax and labour data verified July 2026 (State Revenue Service (VID), State Social Insurance Agency (VSAA), Register of Enterprises). Figures change; we confirm the current position when we scope your hire.