Latvia Salary Calculator 2026
See your salary after tax in Latvia – convert gross to net or net to gross, and check the full cost to your employer.
Taxes 2026
Non-taxable minimum
Key figures 2026
How take-home pay is worked out in Latvia
The amount in a Latvian employment contract is the gross salary. Before paying you, the employer withholds two things – the employee's state social security contributions (VSAOI) and personal income tax (IIN) – and pays both to the State Revenue Service (VID). What is left is your take-home pay ("alga uz rokas").
VSAOI: 10.5% of salary
The employee's VSAOI funds pensions, sickness, maternity and unemployment benefits, and is withheld from the whole salary. If annual income goes above the VSAOI ceiling of 105,300 €, the excess is subject to a 25% solidarity tax instead, and VID refunds the overpaid difference the following year.
IIN and the non-taxable minimum
IIN is charged on what remains after VSAOI, less the non-taxable minimum. The minimum is no longer income-tested: it is 550 € a month for every employee and 1,000 € for pensioners, and each dependant adds a further 250 € relief. To get them, you need to hand your payroll tax book ("algas nodokļa grāmatiņa") to your main employer.
The payroll tax rate is 25.5% however much you earn – that is what the employer withholds each month, and what this calculator uses. Progression works on an annual basis: the part of annual income above 105,300 € is taxed at 33%, settled through the annual income tax return, and income above 200,000 € a year pays an additional 3%.
What the employer pays on top
On top of the gross salary the employer pays its own share of VSAOI, 23.59%. Together with the employee's 10.5% that makes the full 34.09% rate. It does not reduce your pay, but it is what determines how much you cost the company overall.
Worked example: 1,900 € gross
- VSAOI 10.5%: 199.50 €
- IIN: (1,900 − 199.50 − 550) × 25.5% = 293.38 €
- Take-home pay: 1,407.12 €
- Employer VSAOI 23.59%: 448.21 € – total cost 2,348.21 €
The minimum wage (780 €) gives 660.33 € take-home and costs the employer 964.00 €.
What the calculator leaves out
The calculation assumes the payroll tax book has been submitted and there are no dependants. It does not cover dependant or disability reliefs, the reduced VSAOI rates for pensioners, the minimum mandatory contributions of 2,340 € per quarter, the annual 33% recalculation and solidarity tax, or eligible expenses (such as education or medical costs) on which part of the IIN can be reclaimed in the annual return.
Frequently asked questions
How is take-home pay calculated from gross in Latvia?
Employee social security contributions (VSAOI) of 10.5% and personal income tax (IIN) of 25.5% are deducted from the gross salary, with IIN charged on gross minus VSAOI and the non-taxable minimum. Net pay = gross − VSAOI − IIN. Use the calculator above for an exact figure.
What is the non-taxable minimum in 2026?
In 2026 there is a flat non-taxable minimum of 550 € a month for all employees, regardless of income. For pensioners it is 1,000 €, and each dependant adds a further 250 € relief.
When does the 33% IIN rate apply?
Every month the employer withholds 25.5% payroll tax, whatever the size of the salary. The 33% rate applies to the part of annual income above 105,300 € and is charged through the annual income tax return; income above 200,000 € a year pays an additional 3% on top.
How much VSAOI does an employee pay in 2026?
Employees pay 10.5% VSAOI, withheld from the gross salary. The employer pays another 23.59% on top, 34.09% in total. Annual income above 105,300 € is subject to a 25% solidarity tax.
What is the minimum wage in 2026?
The minimum monthly wage in 2026 is 780 € gross, which comes to roughly 660 € take-home after VSAOI and IIN.