Salary calculator

Information related to salary calculation for 2026

Mandatory state social insurance contributions

Mandatory state social insurance contributions (VSAOI) are applied to employment income. The basic¹ rate is:

• employee's share – 10.5 %;
• employer's share – 23.59 %.

A reduced VSAOI rate applies to pensioners:

• employee's share – 9.25 %;
• employer's share – 20.77 %.

The allocation of VSAOI rates among the types of state social insurance is determined by Cabinet of Ministers Regulation No. 786. ²

The maximum amount of the VSAOI contribution object is EUR 105,300. ³

If annual income exceeds EUR 105,300, the solidarity tax applies to the excess amount. ⁴ The solidarity tax rate is 25%. ⁵

The employer applies VSAOI to salary. The State Social Insurance Agency calculates the solidarity tax and performs a reconciliation, refunding the difference between the VSAOI amount and the solidarity tax amount. ⁶

Personal income tax

The employer applies a personal income tax (IIN) rate of 25.5% to monthly salary. ⁷ Only where an employee is subject to the social insurance system of another country and their income exceeds the applicable maximum threshold, a 33% rate is applied to the excess amount for the month.

If annual income exceeds EUR 105,300, the 33% IIN rate applies to the excess amount. ⁸

If annual income exceeds EUR 200,000, an additional 3% rate applies to the portion of income exceeding EUR 200,000. ⁹

State fee for business risk

The state fee for business risk is EUR 0.36 per month for each employee. ¹⁰

Non-taxable minimum and tax allowance for a dependent

The non-taxable minimum is EUR 550 per month. ¹¹

The tax allowance for each person dependent on the employee is EUR 250 per month. ¹²

The employer applies the non-taxable minimum and tax allowances if the employee has submitted their tax booklet to the employer. The employer can check in EDS whether the employee has submitted the tax booklet and can also see the applicable non-taxable minimum and the number of dependants of the employee. ¹³

Sources

1. Law “On State Social Insurance”, Section 18. likumi.lv
2. Cabinet of Ministers Regulation No. 786 of 17 December 2020 “Regulations Regarding the Distribution of the State Mandatory Social Insurance Contribution Rate by Types of State Social Insurance”, Paragraph 3. likumi.lv
3. Law “On State Social Insurance”, Section 14. likumi.lv
4. Solidarity Tax Law, Parts 3 and 16 of Section 3. likumi.lv
5. Solidarity Tax Law, Section 6¹. likumi.lv
6. Solidarity Tax Law, Section 7. likumi.lv
7. Law “On Personal Income Tax”, Section 15. likumi.lv
8. Law “On State Social Insurance”, Section 14. likumi.lv
9. Law “On Personal Income Tax”, Section 15¹. likumi.lv
10. Cabinet of Ministers Regulation No. 651 of 4 November 2025 “Regulations Regarding the State Fee for Business Risk in 2026”, Paragraph 2. likumi.lv
11. Law “On Personal Income Tax”, Paragraph 19⁷. likumi.lv
12. Law “On Personal Income Tax”, Section 13. likumi.lv
13. State Revenue Service EDS – information on the tax booklet. EDS

• The minimum wage within the normal working time is - 430 euro per month.
• To calculate the minimum hourly rate, you need to divide 430 euros by the number of working hours in the corresponding month (for example, 8 hours a day multiplied by the number of working days in a month).
• Personal income tax rate, in general, depends on the amount of income. If the wage does not exceed 1667 euros per month, then the tax rate is 20%. If the amount of wages exceeds 1167 euros per month, then to the amount exceeding 1667 euros, must apply the rate 23%. If an employer has not received a tax book of an employee, then 23% rate applies regardless of the amount of wages. In some cases, the rate is 31.4%.
• The general rate of mandatory payments of state social insurance is 35.09%. From wages must withhold 11%.
• The allowance for dependents is 200 euros per month for each dependent.
• The maximum amount of the non-taxable minimum is 200 euros per month.