The average Latvian salary
According to data from the Central Statistical Bureau of Latvia (CSB), the average gross salary in Latvia sits between €1,500 and €2,000 per month, with steady growth in recent years. After deducting employee contributions and progressive income tax (25.5% up to €105,300/year, 33% above that), the average net salary is around €1,100 to €1,450 net per month.
In Riga, the economic capital, pay is on average 15 to 20% higher than the national average, driven by the concentration of company headquarters, financial services, and the IT sector. Outside the capital, salaries drop noticeably, particularly in rural regions.
To properly interpret these figures, it helps to compare them with the cost of living in Latvia, which is significantly lower than in Western Europe: €1,000 net in Riga buys a standard of living roughly equivalent to €1,700-1,800 net in a major Western European capital such as Paris.
The legal minimum wage
The legal minimum wage in Latvia is set by the government each year and stands at €780 gross per month in 2026. It's one of the lowest in the eurozone, but it remains consistent with local price levels.
Latvia is gradually raising this minimum year on year, driven by the EU directive on adequate minimum wages. Subject to future regulatory changes, this upward trend should continue.
Salaries by sector
Pay gaps between sectors are significant in Latvia. IT and financial services are by far the best paid, while hospitality and retail sit close to the minimum wage.
| Sector | Average gross salary / month | vs Western Europe |
|---|---|---|
| IT & Software Development | €2,500–4,000 | 40-50% cheaper |
| Finance & Accounting | €1,800–2,800 | 35-45% cheaper |
| Law & Consulting | €1,500–2,500 | 30-40% cheaper |
| Marketing & Communications | €1,200–1,800 | 35-45% cheaper |
| Administration & HR | €1,000–1,600 | 30-40% cheaper |
| Sales & Retail | €900–1,400 | 40-50% cheaper |
| Hospitality & Catering | €700–1,000 | 50-60% cheaper |
Employer social contributions in Latvia
In Latvia, the social contributions system is relatively simple. The employer contributes 23.59% of gross salary, on top of which come employee contributions (10.50%, for roughly 34% total social contributions) and progressive income tax (25.5% up to €105,300/year, 33% above that).
Worked example for an employee on €1,400 gross
- Gross salary: €1,400
- Employer contributions (23.59%): + €330, total employer cost: €1,730
- Employee contributions (10.50%): - €147
- Taxable base: around €1,253 → tax (25.5%) ~€320
- Net salary received: around €933
Indicative simulation subject to regulatory change; a Latvian accountant should confirm the exact calculation for your situation.
Compared with countries like France, where employer costs often exceed 40-45% of gross salary, the total cost of a Latvian employee is significantly lower. For a company looking to hire its first employee, that's a real competitive advantage.
How to Hire a Latvian Employee From Abroad
To legally hire in Latvia, you need a properly registered SIA in Latvia. It will be the official employer: without a local legal entity, you can't sign an employment contract under Latvian law.
- Draft an employment contract in Latvian compliant with Latvian labour law
- Register the employment relationship with the SRS (Valsts ieņēmumu dienests) before the first working day
- Set up monthly payments of social contributions and income tax
- Comply with Latvian rules on paid leave (4 weeks minimum) and notice periods
All of this can be managed remotely with the support of a local accountant or a Latvian HR firm. Start by forming your SIA in Latvia before considering any hiring.
"For tech or consulting companies, Latvia offers a pool of skilled, multilingual talent (Latvian, Russian, English) at costs well below Western Europe, within a secure EU legal framework."
The Latvian labour market
Unemployment in Latvia is below 7%. IT profiles are scarce and highly sought after — plan for salaries at the top of the range to attract the best developers. Administrative and sales profiles, on the other hand, are more readily available.