Minimum Wage Latvia 2026: EUR 780 Gross

EUR 780 per month gross -- that is the mandatory minimum wage in Latvia for 2026, applicable to all full-time employment contracts regardless of industry, company size, or employee nationality. No employer may pay less for a standard 40-hour work week. The figure represents an increase from previous years and carries implications that extend well beyond the payslip of minimum-wage workers.

From Gross to Net: What EUR 780 Actually Means

For an employee with their tax booklet registered and no dependents:

| Line | Amount | |------|--------| | Gross salary | EUR 780.00 | | Employee VSAOI (10.50%) | -EUR 81.90 | | Non-taxable minimum (full) | EUR 550.00 | | Taxable income | EUR 148.10 | | IIN (25.5%) | -EUR 37.77 | | Net salary | EUR 660.33 |

With one dependent child, the net rises to approximately EUR 724 (dependent relief of EUR 250 reduces the taxable base further). With two dependents, the IIN drops near zero, and net approaches EUR 698 or higher.

Without a tax booklet (second job, booklet not registered): net drops to approximately EUR 577. The difference -- about EUR 83 -- is the cost of not registering the tax booklet.

What the Employer Actually Pays

The EUR 780 on the contract is not the employer's real cost:

• Employer VSAOI: EUR 780 x 23.59% = EUR 184.00
• Total employer cost: EUR 964.00 per month
• Annual cost: EUR 11,568

For businesses employing several minimum-wage workers (retail, hospitality, agriculture), this 23.59% overhead is a significant budget item. A team of 5 minimum-wage employees costs EUR 4,820/month, not EUR 3,900.

Who Is Affected Beyond Minimum-Wage Workers

The minimum wage serves as a benchmark that ripples through the entire payroll structure:

• Penalty calculations often reference minimum wage as a multiplier
• Sick leave minimum -- employer-paid sick days cannot fall below a floor tied to minimum wage
• Social benefit eligibility thresholds reference minimum wage
• Part-time salary floors -- a half-time employee must earn at least EUR 390

When the minimum wage rises, employees earning slightly above the old minimum often expect (and sometimes contractually require) proportional increases, creating a compression effect across the lower salary bands.

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Payroll Compliance Starts With Getting the Basics Right

Whether you employ workers at minimum wage or well above it, CORVUS ACCOUNTING & TAX ensures every payslip reflects current rates, correct deductions, and timely VID reporting.

Ensure compliant payroll -- contact CORVUS →