Global Payroll Services in Latvia

Already have a Latvian entity, or running payroll across several countries? We place you with a vetted Latvian payroll partner who keeps VSAOI and income tax filings exactly right, and gets the corporate-tax-on-distribution timing correct with your finance team, while you stay the legal employer and we stay on your side.

  • Independent advice
  • Vetted partners
  • Multi-country ready

What running payroll in Latvia involves

If you already employ people through your own Latvian entity, you stay the legal employer, but you still have to run payroll correctly every month: income tax and the VSAOI social insurance contribution to the State Revenue Service (VID) and the State Social Insurance Agency (VSAA). The mechanics are simpler than many EU markets, one contribution, one agency, but that simplicity is exactly why mistakes get noticed fast. This is where a specialist payroll partner earns its place: you keep the employment relationship, they keep the mechanics right every cycle.

01

You stay the employer

You stay the legal employer of your Latvian staff. The payroll partner runs the monthly mechanics; you keep the employment relationship.

02

Accurate every cycle

Income tax and the VSAOI social insurance contribution calculated and withheld correctly, payslips issued, and statutory filings made on schedule, every month.

03

Multi-country consolidation

Run payroll across several markets under one partner and one process, rather than a different vendor and standard in every country.

How managed Latvian payroll works, step by step

From onboarding your employee data to filing and reconciliation.

01 — Scope & onboard

We map your entity, headcount, and where you employ people, place you with the right vetted Latvian payroll partner, and onboard your employee data.

02 — Set up calculations

Income tax, the VSAOI contribution, and any statutory benefits configured correctly to current Latvian rules, so every payslip is right from the first run.

03 — Run monthly payroll

Salaries calculated, income tax and the VSAOI contribution withheld, payslips issued, and people paid on schedule, every cycle.

04 — File & reconcile

Statutory filings to the State Revenue Service (VID) and the State Social Insurance Agency (VSAA) made on time, with annual reconciliation handled for you.

What payroll in Latvia costs

Your statutory employer costs, plus a payroll partner fee. Latvia’s employer burden is one clean rate rather than several schemes to add up; the value of the partner is accuracy on the corporate-tax and income-tax reform detail, in a system where mistakes are visible and penalised.

Employer social insurance

23.59% of gross salary, the full employer share of the VSAOI mandatory state social insurance contribution, collected by the single State Social Insurance Agency (VSAA) rather than several separate schemes.

Minimum wage (2026)

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

Income tax (employee)

25.5% up to EUR 105,300 of annual income, 33% above that, plus a 3% solidarity surcharge above EUR 200,000, calculated and filed correctly on every payslip.

Payroll partner fee

A transparent per-employee or per-payslip fee. We benchmark across our vetted network, typically 15 to 25% below going direct.

Why run it through Bradford Jacobs

One partner, many countries

If you run payroll across several markets, we consolidate it through vetted partners under one point of contact, not a different vendor and a different standard in every country.

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

Pricing you can’t get direct

Latvia’s payroll mechanics are simple on the employer-cost side, one contribution, one agency, which makes an under-priced quote easy to miss until the corporate-tax or income-tax-reform detail is wrong on a filing. We benchmark across our payroll network for rates typically 15 to 25% below going direct, and renegotiate for you at renewal.

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

The detail VID and VSAA never miss

The VSAOI withholding, the progressive income-tax bands introduced in the recent reform, and the corporate-tax timing on any dividend distribution. We place you with partners who get the specifics right, and we stay on your side if anything needs escalating.

  • Direct escalation
  • No support queues
  • Named account contact

20+ years and the local detail

Two decades running compliant payroll across global markets, the deadlines, the filings, the year-end detail that exposes risk.

  • Two decades of payroll
  • Deadlines & filings
  • Year-end handled

Built to scale across markets

Run payroll in one country or twenty through one partner and one process. As you add markets, the standard does not fragment, you keep a single point of contact and consistent compliance everywhere.

  • One process everywhere
  • Single point of contact
  • Consistent compliance

The corporate-tax timing VID and VSAA never miss

These are the ones that catch foreign employers, and the reason a specialist partner pays for itself.

Tax & deduction rates

Misapplying the progressive income-tax bands introduced in the recent reform. Treating corporate tax as a flat annual charge rather than a tax that only falls due on distribution. Missing a statutory benefit or leave entitlement. Each is easy to get wrong alone and visible to VID and VSAA when you do.

Filings, deadlines & reporting

Late remittance to VSAA or VID, where penalties and interest apply automatically. None of these are hard for a specialist; all are easy to get wrong alone. That is the whole case for getting your Latvian payroll partner right.

What managed payroll covers

One transparent fee covers the full monthly payroll cycle. No hidden extras.

Tax, social insurance & VSAOI filings

Compliant Latvian payroll processed monthly, with income tax and the VSAOI contribution correct every run.

Payroll & filings

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

Statutory benefits

All statutory benefits administered: annual leave, sick pay, maternity and paternity benefit coordination with VSAA, notice and severance.

Compliance & support

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

Your questions answered

Straight answers on running compliant payroll in Latvia.

Do I need a Latvian entity to use payroll services?

Yes. Payroll outsourcing assumes you are the legal employer, which usually means you have a Latvian entity. If you have no entity and do not want one yet, you need an EOR instead, where the partner is the legal employer. We will confirm which applies to you.

Income tax calculation and remittance, the VSAOI employer and employee contribution, statutory benefits and leave, payslips, and all statutory filings to the State Revenue Service (VID) and the State Social Insurance Agency (VSAA). You keep the employment relationship; they keep it compliant and on time.

Personal income tax moved to a genuinely progressive structure: 25.5% up to EUR 105,300 of annual income and 33% above it, with a 3% solidarity surcharge above EUR 200,000, replacing the older flat-rate framing many employers still assume applies. A good payroll partner reconfigures every payslip calculation for the current bands automatically, one of the most common payroll mistakes when a reform changes the structure rather than just a rate.

One clean number: 23.59% of gross salary, the employer share of the VSAOI social insurance contribution, with no separate schemes to add on top. Add the transparent payroll partner fee and you have your all-in cost.

Yes, and it is one of the main reasons companies come to us. One point of contact and a consistent process across markets, rather than a separate provider and a different standard in every country.

Yes. When you incorporate and become the legal employer, we move your people from the EOR arrangement onto your own compliant Latvian payroll, and manage the handover so nothing is missed.

Need compliant payroll in Latvia?

Tell us your entity setup and headcount and we will come back with the right partner and pricing you will not get direct, usually within a day. One process, every country you operate in.

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 payroll.