Employer of Record in Latvia

For companies building teams of 10 or more across business, technical, and operational functions — not for individual hires.
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Why companies build teams in Latvia

Lundi supports compliant employment in Latvia — Riga has a growing tech sector and strong English-language environment. EU compliance plus competitive cost. Strong fit for specialist hires and small teams; for larger teams Poland or Lithuania often win on scale.

Languages

Latvian

Payroll Frequency

Monthly

Currency

EUR

Capital City

Riga

Employer Tax Rate

24.00%

Latvia has built a credible tech sector concentrated in Riga — Mintos, Printful (logistics), plus engineering operations for international tech employers. Strong English-language environment among professional roles. EU member, eurozone since 2014. Employer social contributions run ~23.59% above gross. Strong fit for specialist engineering hires, Russian/Latvian/English-trilingual roles, and cost-driven mid-size operations within EU compliance. For larger SSC and engineering teams Lundi typically also considers Poland (deeper talent pool) and Lithuania (similar Baltic environment, larger market).

Cost of Employment in Latvia

What it costs to employ someone through Lundi.

Lundi's cost is the all-in cost of the employee — gross salary plus statutory employer contributions plus customary benefits — and a Lundi management fee on top. The management fee depends on team size and scope: smaller teams pay a higher per-head rate, teams of 20+ get materially better unit economics, and Build–Operate–Transfer engagements are structured separately.

The alternative paths look like: setting up your own local entity (meaningful months of legal and accounting work, plus ongoing in-country HR, payroll, and compliance infrastructure), engaging a local recruitment agency on contingency (typically a percentage of first-year compensation, paid once, with no ongoing employment relationship), or hiring as a contractor (lower upfront cost, real misclassification risk in most jurisdictions). Lundi is faster than entity setup, structurally different from contingency recruitment, and lower-risk than contractor arrangements.

Talk to us for specific pricing.

Talk to us about Latvia

Employer Tax Costs in Latvia

In Latvia, an employer’s total social contributions total are around 24%.

Employee Income Taxes in Latvia

In Latvia, employees pay a flat rate income tax of 23%. Employees pay social security tax at a rate of around 11%. In Latvia, income levels above EUR62,800 are subject to solidarity tax, paid at the same rate as social security contributions.

Employee Probation in Latvia

The probationary period in Latvia is no more than three months.

Employee Overtime in Latvia

Normal working hours in Latvia are eight hours per day and 40 hours per week. Any overtime work over the standard hours is paid at double the rate of regular wages.Overtime work cannot exceed eight hours on average within a seven-day period, calculated in a reference period that does not exceed four months.

Employee Notice in Latvia

Employment can be terminated by either party as long as "appropriate" notice is given, which can be between 10 and 30 days.

The notice period for resignations is one month.

Termination in Latvia

Employees should be paid a severance pay according to their length of service. The breakdown is as follows:Up to five years’ service: One month’s wages5-10 years’ service: Two months’ wages10-20 years’ service: Three months’ wages20+ years’ service: Four months’ wages

How Lundi works in Latvia

Build

We scope your team and recruit the right people in-country — finance, accounting, HR/payroll, BD, ops, or IT.
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Operate

We employ the team via our local entity and run the day-to-day — payroll, compliance, HR, and performance management.
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Transfer

When you're ready, we transition the team to your own legal entity. Or stay on Lundi's infrastructure indefinitely — your choice.
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Why Companies Choose Lundi

If you need help with anything, we're here for you

Who is Lundi for?

Lundi works with companies building teams of 10 or more across business, technical, and operational functions . Not for one-off hires or individual placements.

How is this different from an EOR?

EOR platforms employ individuals for you. Lundi recruits, employs, and operates concentrated teams — including day-to-day management, HR, and an optional path to your own entity. It's the operating model for companies that have outgrown the EOR ceiling.

Still have any questions? Talk to us.