Hire Employees & Contractors


Compliantly hire your distributed team members in


Person working on laptop

Hiring in


isn't so simple. Borderless can help.

To hire new employees in


, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in


while staying fully compliant with local laws and compliance.

Primary Language



Euro (€, EUR)

Payroll Frequency


Public Holidays

12 days

Employer Taxes


Cost of Living Index


Statutory Leave

20 days

Sick Leave

10 days: sick leave paid by the employer; 11 days - 26 weeks: employees receive 80% of their salary, paid by social security

Maternity Leave

112 days

Important: Risks of misclassification

In many countries like


, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

EUR 500 per month.

Overtime Pay

Overtime pay is required. Overtime is defined as hours worked outside of normal working hours. Overtime is limited to 8 hours per week for employees.

Overtime is not permitted to exceed 48 hours per month or 200 hours per year. Employees are paid a minimum supplement of 100% of their hourly or daily wage rate for additional hours worked.

Working hours are typically eight hours per day, 40 hours per week. Monday through Friday is the standard workweek.

Additional Pay

Employees are entitled to 18 months of parental leave until their child reaches the age of eight. Parental leave can be taken all at once or in installments. Parental leave can be taken by either parent.

Parental leave is paid at various rates based on the following factors:
Leave taken until the child reaches the age of one year is paid at 60% of the average salary.
Leave taken by the time the child is 1.5 years old will be calculated at 43.75% of the beneficiary's average insurance contribution salary.

Payroll Cycle

For all Borderless customers, employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Employer Costs & Taxes

  • Employer Social Security Contribution - 23.5%
  • Business risk fee per employee - €0.36

Employee Costs & Taxes

  • Up to EUR 20,004: 20%
  • EUR 20,004 - EUR 62,800: 23%
  • Above EUR 62,800: 31.4%

Employment Information

Termination Process

Terminations in Latvia can be difficult. Outside of the probation period, there is no at-will termination in Latvia, and termination must be done for just cause.

Terminations that are compliant include:

  • Employee resignation
  • By mutual consent
  • The employer acts unilaterally (causes established by Labor Law on section 101)

Notice period

The minimum notice period in Latvia is one month and can be shortened if agreed upon in the employment contract.

Probation Period

Parties to an employment contract, whether for a fixed or indefinite period, can agree on a probationary period (Section 46 and following of the Labour Law). A probationary period can last up to three months. Persons under the age of 18 are not subject to a probation period. When the contracted term of a probation period expires and the employee continues to perform the work, the probation period is considered completed (Section 47 (2) of the Labour Law).

Severance Details

In Latvia, all employees who are terminated for the following reasons are entitled to severance pay:

  • Employee lacks sufficient occupational competence to perform work.
  • Employee is unable to perform the contracted work due to a medical condition, which has been certified by a doctor.
  • Employee who previously performed the relevant work has been rehired.
  • Employees are being laid off.
  • The company is being liquidated.
  • Employee is unable to perform work due to a temporary disability.

The length of employment will determine severance pay:

  • fewer than five years of experience - one month's average earnings
  • 5 to 10 years of experience - two months of average earnings
  • 10 to 20 years of experience - three months of average earnings
  • Over 20 years of work - four months of average pay

Benefits of working in a country abroad

Borderless Benefits Packages in


When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in


Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo