Professional Employer Organization (PEO) in Latvia

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Employ contractors and employees in 160+ countries
Employ and pay
global talent

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Global PEO in Latvia

As a startup or a small business, you might not have the time — or the resources — to deal with the headaches that come with international HR. But you do want to tap into a global market and get the best possible talent for your company, right?

If you’re looking to expand globally, Latvia is an excellent place to start. The small Baltic country, with less than two million residents, is home to a highly-skilled workforce with access to top-level infrastructure, plus it has some of the fastest internet speeds in the world.

The country is also 18th in the world on the Economic Freedom Index as of 2022. It’s uniquely placed in the northeast of Europe, on the Baltic Sea, close to both Central Asia and Western Europe.

Traditionally, hiring in Latvia, or anywhere remotely for that matter, can be notoriously tricky… unless you work with a PEO, that is. 

At Skuad, we make it incredibly painless and straightforward to hire, onboard, and employ new recruits –– no matter where they’re based. Let’s take a look at how you can make your first hire in Latvia.

What is a PEO?

A Professional Employer Organization (PEO) exists to help small and medium businesses expand and hire around the world. A PEO takes care of HR responsibilities and onboarding, allowing companies to hire outside their geographical home base.

A PEO will manage payroll, comply with local tax laws, source and distribute employee benefits packages, and ensure that you’re meeting all the relevant local requirements where your employees are based.

Taking on all of this in-house can be time-consuming and expensive, so PEOs exist to make the process far more streamlined –– both for you and your employees. 

By partnering with a PEO, you can bring on employees all around the world, including in Latvia! Your PEO provider will take on the burden of keeping everything running smoothly: fulfilling local requirements while making sure your employees are paid correctly and on time.

If it sounds like PEO services would be a great fit for your business, drop us a line! A friendly member at Skuad will be happy to answer any questions you may have.

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What are the benefits of using a PEO provider in Latvia?

Working with a PEO to hire in Latvia can open your business up to a lot of new opportunities. Let’s quickly go through the benefits. 

Hire from the best of the Latvian and global talent pool

Of course, when you’re recruiting new employees for your organization, you’re going to want to hire the absolute best candidates possible. But what happens when those perfect applicants are on the other side of the planet?

You shouldn’t let distance stand in your way of growing your company! Normally, hiring employees in Latvia — and the rest of the world — is a tricky process. You need to deal with new labor and tax laws, and also make sure your employees are being rewarded properly.

Latvia is a fast-growing economy with a highly skilled and motivated workforce, and using a PEO means you can tap into the talent pool of Latvian workers who are looking to work for a global company like yours. 

Become a globally competitive employer

What’s a sign of a good business? When highly-skilled employees, from all over the world, want to work for you. It can be hard to know the salary and benefits to offer applicants to position yourself ahead of your competitors when hiring internationally.

A PEO that operates in Latvia will have an understanding of the benefits employees are legally entitled to… and also what more you can add on to attract the most qualified candidates.

Save on unnecessary costs

Expanding your business to hire in Latvia without the help of a PEO service would be a massive undertaking –– with a massive bill. Hiring internationally is such a big expense that even most larger corporations choose to partner with PEOs instead of navigating it alone.

You’d have to hire in-house HR staff to liaise with your Latvian team, and manage their onboarding and payroll. Of course, you’d also need to work with local lawyers who understand Latvian labor and taxation laws to ensure you’re meeting all the statutory employment requirements.

Learn more about how Skuad’s PEO services can help save your business money by booking a demo today.

Gain in-depth insights into new global markets

Considering expanding your organization into Europe? Hiring an employee on the ground, so to speak, is a great opportunity for getting a real insight into the local market. No amount of data analysis can compare to first-hand knowledge.

Avoid setting up your own legal entity in Latvia

Say you don’t want to partner with a PEO but you still want to hire in Latvia. The only other way would be to set up your own legal entity in the country. It sounds simple, but the reality is that it takes months of hard work and a whole team of lawyers to help complete the process.

It’s also very costly –– you should only really consider it if you’re planning to establish a whole team in Latvia.

Working with a PEO to onboard and manage workers in Latvia is a much simpler option, which you can get started right away. No need to wait around for months while the paperwork gets approved! Most PEOs will already have their own legal entity set up in Latvia, which you can then use to hire employees on your behalf. 

Become culturally aware

As a global company, you can’t underestimate the necessity of being aware and sensitive to other cultures. We’re very set in the ways we do business, but that definitely changes based on where you are in the world!

Did you know that Latvia has a strong paid maternity leave mandate — 112 days — and that employees with kids are given preference when choosing annual leave? Working with a PEO makes it a lot easier to keep track of the local laws, and will fill you in whenever necessary. 

Ensure that your business complies with statutory requirements in Latvia

Every country has its own legal requirements when it comes to employees –– and it can get pretty tricky trying to keep track of them all.

But confusion is just the tip of the iceberg. If you, as a company, fail to comply with statutory labor requirements, you could be facing fines or even business bans. It’s essential that you get it right!

Here are some of the specifics that are required for employees in Latvia:


  • Workers are paid in the local currency, the Euro.
  • Probationary periods of up to three months are permitted, after which employees must receive a month’s written notice before termination. 

Tax and contributions

Employers are required to withhold wages for income taxes, at the following rates:

  • 20%: 0 - EUR 20,004.
  • 23%: EUR 20,004 - EUR 62,800 
  • 31.4%: EUR 62,800 and above

On top of that, a social security contribution of 23.59% is required from employers and 10.5% from employees.

Employees are paid monthly. 

Paid leave

  • Employees are entitled to at least 4 weeks of paid annual leave.
  • Employees with children under three years old get preference for annual leave days.
  • Latvians have 12 public holidays each year and the day before a holiday is often reduced by an hour. 
  • The sick leave policy is ten days per year. The second and third days should be paid at 75% of regular wages, and the 4th through 10th days at 80%.
  • Female employees are generally entitled to 112 days of maternity leave, which are usually taken as 56 before birth and 56 after.

Learn more about how Skuad’s PEO services can help your business to grow by booking a demo today.

What does it cost to build a team in Latvia?

Company Incorporation in Latvia

Your first option is to incorporate your company in Latvia –– and at first glance, the cost is pretty low. The fee is €470, plus a €500 yearly fee for a physical address in-country. But your outgoings can spiral very quickly. Don’t forget that you’ll also need comprehensive legal support to navigate the laws surrounding business licenses and hiring, which could cost thousands of euros in fees.

Or, instead, you could partner with PEO services in Latvia instead.

PEO in Latvia

Pricing for PEO packages varies between providers based on their offered services. With Skuad you can get started for free and cancel at any time with no charge!

Our PEO service starts at just $19 per month, for onboarding and managing employees, no matter where they’re based in the world.

We also offer more comprehensive Employer of Record services that include managing payroll, benefits, and compliance, for as low as $199 a month –– a very reasonable cost compared to the price of company incorporation.

Want to book in for a demo?

If you’re ready to start onboarding and paying employees in Latvia, book in for a demo of Skuad’s global PEO solution right away!

Employ contractors and employees in 160+ countries

Get started

Employ contractors and employees in 160+ countries

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Building a remote team?

Employ exceptional talent, anywhere, anytime!

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