Payroll

How we work

Step 1: Free consultation. We review your headcount, contract types and pay schedule, then send a fixed quote and a takeover plan within one business day.

Step 2: Onboarding. We collect employee data, employment contracts and vacation balances, check each employee's electronic tax book (non-taxable minimum, dependents) and set up authorised access to the VID EDS system. Onboarding typically takes 3–5 business days.

Step 3: Monthly payroll cycle. You send timesheets and change notices by an agreed date. We run gross-to-net calculations — 10.50% employee VSAOI, 25.5% IIN, allowances — issue payslips to employees, file the employer's report (darba devēja ziņojums) in VID EDS by the 17th, and deliver a ready-to-import payment file for your bank so salaries and taxes go out by the 23rd. How the numbers work is explained in our payroll guide for Latvia.

Step 4: Absences and changes. Sick leave (employer-paid days, handover to VID from day 10), vacation pay based on average earnings, parental leave, and dismissal settlements with unused vacation compensation — all calculated and documented as part of the net salary calculation.

Step 5: Year-end. We prepare annual income statements for every employee and reconcile the year's VSAOI and IIN with VID data.

What determines the price of payroll services in Latvia

Most payroll companies in Latvia price per employee per month, with minimum monthly fees on top. At CORVUS, payroll is built into a single monthly accounting fee, so you are not billed separately for every payslip:

The exact fee depends on headcount, staff turnover and complexity (shift work, bonuses, expatriates) — see our pricing page. Estimate the total cost of each hire — gross salary plus 23.59% employer VSAOI — with our employer cost calculator or the employer cost breakdown.

FAQ

How much do payroll services cost in Latvia?

Standalone payroll in Latvia is commonly priced per employee — a per-payslip fee plus a monthly minimum, so costs grow with every hire. CORVUS includes payroll in the overall accounting package: EUR 150/mo for a new company with 1–2 employees, EUR 200–600/mo for a small business, EUR 700–900/mo for a medium one. For payroll-only engagements we quote a fixed monthly fee after a free consultation.

What does the employer report to VID every month?

Every employer in Latvia files the darba devēja ziņojums (employer's report) in VID EDS by the 17th of the following month. It lists each employee's gross pay, VSAOI contributions (23.59% employer + 10.50% employee) and withheld IIN. Payment of the taxes is due by the 23rd. We prepare and file the report, monitor deadline changes, and reconcile it with your accounting so VID data always matches your books.

Can you take over payroll mid-year?

Yes — mid-year handovers are routine for us. We import year-to-date earnings, IIN and VSAOI data from your previous accountant or payroll company, carry over vacation accruals and sick-leave history, and verify tax book settings. The first month is checked against prior calculations, so employees notice no difference.

Do you provide payroll support in English and Russian?

Yes. Our team works in Latvian, Russian and English. Payslips, contract templates and management reports can be prepared bilingually, and your foreign employees or head office can contact us directly in English. International teams we also support through the Russell Bedford International network.

How do you keep salary data confidential?

Salary data is among the most sensitive information a company holds. We process it under GDPR with a signed data processing agreement: access is limited to your assigned payroll accountant, payslips go individually to each employee, and data moves through secure channels rather than open email. Salary information is never disclosed to anyone in your company beyond the persons you authorise.