MINIMUM AND AVERAGE SALARY IN LATVIA

Latvia lags behind most EU countries in terms of wages. The population of this Baltic state is only 1.8 million people, and just over 965 thousand locals are economically active. Unemployment fluctuates within 6-7%. The most attractive place for employment in Latvia is considered to be the Riga region, due to which the country's economic growth is ensured and where the employment situation is quite stable.

During the last 20 years there has been a significant outflow of young and educated Latvian citizens to more developed European countries, one of the main reasons being higher wages and living standards in general. Therefore, the Republic of Latvia is interested in attracting foreign workers from abroad. For example, there is a demand for international drivers, programmers and labourers. We will talk further about what salary in Latvia in 2024.

Minimum salary in Latvia

The level of minimum wage in Latvia is regulated by several normative acts at once and in accordance with Article 61 of the local Labour Law is set by the Cabinet of Ministers of the country. No Latvian company has the right to lower the guaranteed rates to its employees. The minimum wage in Latvia in 2024 is 700 euros per month, which is 80 euros or 12.9 per cent more than in 2023. At the same time, inflation in the country for 12 months was 9.1%.

Note. The minimum wage in Latvia is regularly revised to take into account several factors, in particular the economic situation, changes in productivity, development of the labour market, unemployment rate and possibilities of the central budget.

For comparison, in neighbouring Estonia, workers receive a minimum of 820 euros, and in the third Baltic country Lithuania, the government raised the rate to 924 euros from 1 January. Among other EU members, only Bulgaria (475 euros) pays less than Latvia. And if we talk about the economic leaders of Europe, the minimum wage in Germany in 2024 is 2 151 euros per month, and in France 1 766.92 euros. That is, the rates are 3 times higher.

Average salary in Latvia

According to official data from the Latvian Central Bureau of Statistics, the average salary in Latvia in 2024 is 1,537 euros per month before taxes. At the same time, Latvians earn 1,533 euros in the private sector and 1,553 euros in the public sector. In the public administration sector, which does not include companies controlled and financed by the central and local government, the income is 1,502 euros.

Important.. Women in Latvia earn on average 16.5% less than men.

Compared to last year, the level of labour remuneration in Latvia has increased by 164 euros or 11.9%. The salaries of local employees largely depend on qualifications, experience, age, profession and specific region. For example, working in Riga provides the highest earnings, exceeding 1,700 euros before tax deductions. For the country as a whole, the net average salary in Latvia in 2024 is 1,119 euros per month.

You can calculate the average net salary in Latvia using an online calculator here. The tables below show the average monthly labour remuneration of Latvian workers in 2024 by regions and economic sectors (Official data of the Latvian Bureau of Statistics).

AVERAGE SALARY IN LATVIA BY REGION

Region	Euro per month (gross)
Riga	1,706
Riga planning region	1,505
Kurzeme	1,306
Zemgale	1,293
Vidzeme	1,242
Latgale	1,083

SALARY IN LATVIA BY SECTORS OF ECONOMY

Economic sector	Euro per month (gross)
Financial and insurance	2,678
Information and communication	2,549
Supply of electricity, gas, steam and air conditioning	1,972
Professional and scientific-technical activity	1,969
Public administration	1,810
Mining	1,703
Health care and social work	1,654
Agriculture, forestry and fishing	1,545
Water supply, sewerage and waste management	1,519
Transportation and storage	1,477
Production	1,460
Construction	1,449
Wholesale and retail trade	1,365
Administrative and support services	1,310
Art, entertainment and leisure	1,286
Education	1,247
Real estate operations	1,247
Accommodation and meals	993
Other services	1,247

Payroll taxes in Latvia

Local employees and foreigners with a residence permit in Latvia, which implies employment and continuous presence on Latvian territory for more than 183 days within 12 months, are obliged to pay taxes on income earned in any country of the world.

Non-residents (residence for less than 183 days per year) pay taxes to the Latvian budget exclusively on income earned in this country. The obligation to withhold income tax and compulsory social contributions from employees rests with the employer.

Tax rates on salaries in Latvia in 2024

Income tax – progressive rate (from 1 January 2019):

• 20% for annual income not exceeding €20,004

• 23% for annual income from €20,005 to €78,100

• 31.4% for annual income exceeding €78,100

• National Social Insurance – 34.09, including 10.5% (employee) and 23.59% (employer)

• Business risk – €0.36 (employer)

• Tax-free minimum – maximum of €250

• Tax allowance for each dependent – €250

• Pension contribution – 30.13%, including 9.45% (employee) and 20.68% (employer)

The real average salary in Latvia in 2024, i.e. after taxes and social payments, rarely exceeds 750-850 euros per month.

HIGHEST PAID OCCUPATIONS IN LATVIA

• Doctors

• Programmers

• Chief Executive Officers (CEOs)

• Lawyers

• Engineers in senior positions

• Aviation pilots

• Maritime transport and shipping professionals

• Sales managers

• Marketing and communications experts

• Energy specialists

Cost of living in Latvia

Compared to most Western European countries, living in Latvia is very cheap. To live comfortably, a single person needs 900 euros per month (excluding rent), while a family of four will need about 3,000 euros.

Basic costs in Latvia:

• Rent: 400-500 euros per month for a one-bedroom flat in the centre.

• Utility bills: 250-350 euros per month.

• Food: 150-200 euros per month per person.

• Transport: 30-40 euros per month by public transport or 100-150 euros per month by car.

• Internet/mobile phone: 30-40 euros per month.

• Clothing and leisure activities: 250-400 euros per month.

Frequently asked questions about salaries in Latvia:

1. What is the average salary in Latvia?

• Before taxes, the average salary in Latvia in 2024 is 1,904 euros per month.

2. What is the minimum wage in Latvia?

• The minimum salary in Latvia in 2024 is 1,537 euros per month (1,119 euros after taxes).

3. What is the highest earning job in Latvia?

• The highest paid professions in Latvia are programmers, doctors and CEOs of large companies.

4. Which job brings the lowest income in Latvia?

• Representatives of unskilled labour – cleaners, waiters, cook's assistants, loaders, shop assistants, maids and so on – earn the least in Latvia.

5. What is the average salary of programmers in Latvia?

• The average income of programmers in Latvia is estimated at 30,000 euros per year.

6. What is the payroll tax in Latvia?

• The income tax rate in Latvia depends on the annual income and varies from 20% (income up to 20,004 euros) to 31.4% (income over 78,100 euros).

7. What is the average salary in Riga?

• The average salary in Riga in 2024 is 1,706 euros per month.

8. What is the average median salary in Latvia?

• The average median salary in Latvia in 2024 is 1,293 euros per month.

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