Employer cost in Latvia at different salaries
| Salary level | Gross salary | Employer SSC | Total employer cost |
|---|---|---|---|
| 67% of AW | 14,285 EUR | 23.6% | 17,659 EUR |
| 100% of AW | 21,321 EUR | 23.6% | 26,355 EUR |
| 167% of AW | 35,606 EUR | 23.6% | 44,010 EUR |
Worked example
The OECD average wage in Latvia for 2025 is 21,321 EUR (about $42,975 in US-dollar purchasing power). On top of that salary the employer pays social security contributions of 23.6%, or 5,034 EUR. That brings the statutory total to 26,355 EUR a year (2,196 EUR a month), or 13 EUR per hour at 2,080 hours. In 2024 the rate at the average wage was 23.6%, so it was essentially unchanged. The rate stays at about 23.6% even at 167% of the average wage, so it scales with pay.
Latvia ranks #12 of 38 OECD countries for employer contributions at the average wage (OECD average: 16.6%). Employer contributions are a substantial extra cost to budget for.
Sources: OECD Taxing Wages 2025, comparative indicators (single worker, no children; average wage as defined by the OECD for each country) and OECD, Non-tax compulsory payments as an additional burden on labour income in 2025 (Tables 5 and 6) for mandatory pension and insurance payments that are not classed as taxes, such as Australian superannuation. Model estimates: voluntary benefits, local caps and sector-specific schemes are not included.
Related
Frequently asked questions
How much does an employee cost in Latvia?
At the OECD average wage of 21,321 EUR, about 26,355 EUR a year including 23.6% employer social security (2025).
What are employer social security contributions in Latvia?
About 23.6% of gross pay at the average wage, 23.6% at 67% and 23.6% at 167% of it (OECD model).