Latvian Social Security
Our tax guide for freelance contractors working in Latvia
There are five social security funds: for unemployment benefits, industrial injuries and occupational diseases, disability, maternity and sickness, and old age pensions. Resident employers have to pay contributions of 24% plus 0.09% for industrial injury on the employees’ taxable income after deduction of pension contributions and life insurance premiums. The maximum income for contributions is LVL 29’600 per year. Latvian employees pay 9% of their taxable income as contributions. Permanently resident employees of non-resident employers and employees of EU or EFTA employers who are liable to pay Latvian social security according to EU regulations pay 33.09% contributions. Foreign employees of non-resident employers who are temporary residents pay 31.1% contributions. Resident employers withhold the employee contributions and pay them together with their own contributions to the authorities. Foreign employees of non-resident employers declare and pay their own contributions as of the 184th day of their stay in Latvia.