VSAOI Rates 2026: Employer 23.59% + Employee 10.50%
April 2, 2026
Total social insurance contributions in Latvia for 2026: 34.09% of gross salary. Split between employer (23.59%) and employee (10.50%), these contributions represent the single largest payroll-related cost beyond the salary itself. For every EUR 1,000 in gross wages, the employer actually pays EUR 1,235.90, and the employee takes home EUR 1,000 minus EUR 105 minus income tax.
No caps apply. Unlike Germany or the Netherlands, where social contributions stop at a ceiling, Latvia charges VSAOI on the full gross salary without limit.
What the 34.09% Funds
The contributions finance the full spectrum of Latvian social insurance:
| Insurance Type | Included |
|---|---|
| State pension (1st and 2nd pillar) | Yes |
| Disability insurance | Yes |
| Maternity and paternity benefits | Yes |
| Sickness benefits (from day 10) | Yes |
| Unemployment insurance | Yes |
| Workplace accident insurance | Yes |
| Parental benefits | Yes |
The split is not arbitrary -- the employer's larger share (23.59%) reflects the principle that social protection is primarily an employer obligation under Latvian law. The employee's 10.50% contributes directly to their pension account and unemployment insurance eligibility.
Practical Impact at Common Salary Levels
| Gross Salary | Employee VSAOI (10.50%) | Employer VSAOI (23.59%) | Total VSAOI |
|---|---|---|---|
| EUR 780 | EUR 81.90 | EUR 184.00 | EUR 265.90 |
| EUR 1,500 | EUR 157.50 | EUR 353.85 | EUR 511.35 |
| EUR 2,500 | EUR 262.50 | EUR 589.75 | EUR 852.25 |
| EUR 5,000 | EUR 525.00 | EUR 1,179.50 | EUR 1,704.50 |
At EUR 5,000 gross, the combined VSAOI reaches EUR 1,704.50 per month -- EUR 20,454 per year. For a 10-person team at this salary level, that is over EUR 200,000 annually in social contributions alone.
(Special reduced rates exist for certain categories: self-employed persons, micro-enterprise employees, and employees with disabilities. These are exceptions to the standard 34.09% and require specific registration with VID. See our pillar guide on payroll for details.)
VSAOI Calculations as Part of Full Payroll Service
CORVUS ACCOUNTING & TAX calculates, reports, and remits VSAOI contributions monthly for employers across Latvia. Accurate rates, on-time payments, zero VID penalties.
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