Rivermate is a global employment solutions company that provides Employer of Record services in Latvia.As an employer of record, we help you hire employees and run payroll services in Latvia, allowing you to avoid the necessity of first establishing a branch office or subsidiary in Latvia.It is not necessary to establish an entity in order to hire an employee. We can hire your employee in any country with a few mouse clicks. Using our Employer of Record solution, you can have full compliance, benefits, and automated payments.If you wish to hire a remote team in Latvia or individually hire remote employees in Latvia, Rivermate’s global employer of record services will make sure that the process will be as seamless as possible for you.Send us a message so we can talk about how Rivermate’s Employer of Record Latvia services can best help your company!
Latvia has made various market-oriented reforms to stabilize the nation's economy since its independence in 1991. The Latvian economy has done well as a result of consistent and upward development in domestic consumption, as well as foreign investment. As a member of the EU since 2004, and of the Eurozone since 2014, the nation has received significant European assistance.The country's modest, open economy is mostly reliant on exports. A large portion of the country's population works in transportation, wood processing, agricultural and food goods, industrial manufacture, and electronics.
Latvia's cost of living is $860, which is 1.09 times less costly than the global average. Latvia rated 87th out of 197 nations in terms of cost of living and 35th in terms of quality of life.In Latvia, the average after-tax earnings is $936, which is enough to meet living costs for 1.1 months.
Latvia is one of the Eurozone's low-cost nations. It is less expensive than other Eurozone nations such as Germany or the Netherlands. However, the cost of living is affected by a variety of variables, including location (capital, nearby cities, or town), industry prominent in that region, lifestyle, and so on. Latvia has low food and beverage prices. Cities have a higher cost of living than villages and rural locations. In the country, a single person's monthly cost is expected to be about $1,376.
Latvia's ports, trains, and highways maintain the nation well-connected with Europe and the rest of the globe; 25 million clients in the Baltic area close to Latvia may be reached within 48 hours. Logistics is one of the cornerstones of the Latvian economy due to the well-connected transportation infrastructure.Latvia's key sectors have begun to increase their investments in chemicals, textiles, food processing, green technology, and equipment manufacturing.Construction, metallurgy, industrial food processing, and mechanical engineering are all part of the industrial sector. The country is well-known for producing radios, refrigerators, medications, railroad equipment, wood, and steel by-products.To address the skills gap in information technology and international companies, skill training programs for IT capabilities, language knowledge, and communication skills have been launched.Latvia's average Internet speed is 113.73 Mbps. Latvia has an average download speed of 128.35 Mbps and an upload speed of 127.54 Mbps.To enhance the economy and employment market, the government is promoting foreign investment in service areas.
One of the most important considerations for any firm looking to acquire new employees is the cost per hiring. And, if you want to employ in a foreign nation, you must do extensive research and analysis on the cost of living, availability of essential talents, and so on in order to determine the appropriate remuneration for the ideal applicant. Furthermore, hiring costs are the total of all costs connected with filling a job, including advertising costs, recruiting event costs, recruitment software fees, onboarding costs, training costs, travel costs, administrative costs, and perks.
The employment ties in Latvia are governed by the Constitution of the Republic of Latvia. Working process rules are made up of international law principles, the Republic of Latvia's constitution, and a few additional laws and regulations.The legal structure has shifted more toward employee-friendly rules and standards.The applicable rules are simple, yet the authorities have considerable authority.The primary laws governing employer-employee relationships in Latvia are:- the Labour Law- the Labour Protection Law- the Labour Disputes Law - the Law On Strikes - the State Labour Inspection Law- the Law On the Protection of Employees in the Event of Insolvency of Employer - the Law On Trade Unions - the Law On Employers' Organisations and their Associations - the Support for Unemployed Persons and Persons Seeking Employment Law - the Law On Informing Employees of European Community-scale Commercial Companies and European Community-scale Groups of Commercial Companies and Consulting Such Employees
The work market in Latvia is vibrant, and highly trained people are in great demand. IT capabilities, as well as language and communication abilities, are in great demand in the labor market. Communication skills, knowledge of the state language and Russian, planning and time management, computer hardware expertise, and programming abilities are the most in demand. Artificial intelligence and huge data programming expertise and abilities are also in great demand in the IT business.Major industries hiring the most in Latvia include:- Chemicals- Food processing- Technology- Transport- Banking - TextilesIn the capital city of etcrecruitment-relatedRiga, there are several work options. Many multinational corporations have bases in Riga, which is attracting many IT companies due to cheaper taxes and wages. Riga, being one of the Baltic States' primary economic and financial capitals, employs half of all Latvians. This city has the greatest potential in the following fields:- Banks- Airlines- Marine transportation- Broadcasting & entertainment- Automobiles- IT and Telecommunications- Pharmaceuticals- Food and beverage manufacturingOther notable cities in Latvia with many career prospects include Liepaja, Ventspils, and Sigulda. These cities provide career opportunities in:- Sales- Trade- Client service- Transportation services- Industrial machinery- Logistics- Ecommerce- Tourism, - ConstructionJurmala is the nation's talent center. There are several prospects for qualified workers in computer hardware and software, as well as telecommunications services.
Latvia's GDP growth rate has been positive since 2011, and it was the highest among European nations in 2019. The COVID-19 pandemic, like the rest of the globe, has harmed economic development, with GDP falling to -3.6% in 2020. With the post-pandemic global recovery, foreign investment and domestic consumption are likely to pick up in the next months, with the GDP recovering up to 3.9% in 2021 and 5.2% in 2022.
The employment market is active and has adequate capacity to support the working-age population of the country. Unfortunately, the COVID-19 situation has resulted in an increase in the number of jobless people. According to the IMF, the unemployment rate will fall to 7.2% in 2021. To counterbalance the consequences of the COVID-19 crisis and strengthen the employment market, the government has implemented temporary stimulus measures.
Full-time employees in Latvia must make at least 430 EUR a month, while teenagers and employees who are subject to specific risks should make at least 2.03 EUR an hour. Latvia compensation laws define “special risk” as environmental risks that can impact the safety and health of an employee.
