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Social security in Latvia 2026
Employees contribute 10.5% of gross pay up to EUR 105,300 a year; above the ceiling, contributions morph into a solidarity tax at a combined 25% (employer and employee together), so high pay never escapes entirely.
The self-employed pay 31.07% on at least the EUR 780 monthly minimum wage, dropping to a 10% pension-only charge on low or excess income.
At a glance
- top rate
- 10.5% employee-side (within the ceiling)
- entry band
- Minimum base: EUR 780/month (EUR 2,340/quarter)
- tax year basis
- Monthly through payroll
- filing deadline
- Withheld by the employer; self-employed report quarterly
- residency basis
- Employment or self-employment in Latvia; foreign employees after 183 days
- regime flag
- Ceiling EUR 105,300; solidarity tax 25% combined above it
Rates
Contribution rates (2026)
| Rate | Base | Applies to |
|---|---|---|
| 10.5% | Gross pay up to EUR 105,300/year | Employees of Latvian employers |
| 34.09% | Same base | Employees of non-resident or other European Economic Area (EEA) employers who assume the full burden themselves |
| 31.07% | Declared income, minimum EUR 780/month | Self-employed — full coverage |
| 10% | Actual income | Self-employed earning under EUR 780/month (pension insurance only), and on income above the chosen base |
| 25% combined | Income above EUR 105,300 | Solidarity tax — replaces contributions above the ceiling, deductible for income tax |
Thresholds & allowances
- Contribution ceilingEUR 105,300 (2026)
Shared threshold with the 33% income-tax band
- Minimum baseEUR 780/month
Employers top up contributions when actual pay falls below EUR 2,340 a quarter; exemptions for pensioners and category I/II disabled
- Micro-enterprise ownersCovered by the 25% turnover tax
The micro-enterprise tax replaces the owner's contributions entirely
- DeductibilityFull
Contributions and solidarity tax reduce taxable income
Residency
Residency trigger
Latvian employment brings withholding from age 15; foreign employees of foreign employers join after 183 days of presence and pay their own contributions monthly.
Non-resident treatment
European Union coordination rules and posting certificates can keep temporarily posted workers in their home schemes; unpaid company directors can still owe contributions under conditions.
Notes
- The employer's share is about 23.59% — outside this page's scope.
- The solidarity tax quietly restores a full burden above the ceiling: combined with the 33% band, top salaries face roughly 58% marginal all-in.
- Royalty recipients and farm-produce sellers make pension contributions once a year for the whole year.
- Employer-paid pension and insurance premiums stay outside the contribution base within the exemption limits.
FAQ
What does an employee pay in Latvia?
10.5% of gross pay up to EUR 105,300 a year — above that the solidarity tax (25% combined employer-employee) takes over, itself deductible from taxable income.
What is the minimum for the self-employed?
Contributions of 31.07% on at least EUR 780 a month when income reaches the minimum wage — below that, a 10% pension-only charge on actual income.
Figures: tax year 2026, compiled from public sources. Not tax advice.