Your Trusted Partner for Recruitment in Latvia

To better fulfill your recruitment needs, we at Remote People are here to help you find top talent in Latvia more effectively than recruiting on your own. Our team understands the local language, customs, and the intricacies of the Latvian talent market, giving you a significant advantage in securing the right candidates.

We know where to advertise your job openings to ensure maximum exposure and attract the best talent. Additionally, we assist in designing competitive, locally-appropriate compensation packages that not only appeal to top candidates but also help you optimize costs. 

Get in touch with us to navigate Latvia’s recruitment landscape with confidence and ease.

Key Takeaways

  1. Latvia’s economy is expected to expand by 3.8% in 2026.
  2. Latvia’s strong digital infrastructure makes it a favorable location for tech startups.
  3. In the last few years, Latvia has seen a significant increase in the number of remote workers.
  4. Companies can use recruitment agencies to connect with the best of Latvia’s 887,000-strong workforce.

Once occupied by the USSR, Latvia is now a growing independent nation with a strong economy and skilled workforce. Despite geopolitical tensions and its reliance on foreign energy supplies, Latvia’s economy has proved itself to be resilient with an estimated 1.7% increase in GDP in 2024. The country’s economy is expected to continue to expand in the coming years, with a forecasted growth in GDP of 2.4% in 2025 and 3.8% in 2026.

Latvia is one of three Baltic states and home to 1.9 million people. Despite energy prices skyrocketing following Russia’s invasion of Ukraine, Latvia’s economy and labor market have remained strong, averaging above most European countries with an employment rate of 61.5%. 

Employers looking to hire in Latvia may enlist expert recruitment agencies’ help. These agencies will use their industry expertise to help companies connect with skilled professionals who can best support their long-term goals. Top recruitment agencies will source and vet candidates, relieving companies of the administrative burden of employment.

Overview of Latvia Recruitment Industry

Latvia boasts a competitive labor market with a participation rate of 61.5% reported for quarter four of 2023. Employment amongst young people aged 15 to 24 is also relatively high compared to other European nations at 30.9%. The region of Riga including the capital Riga accounted for 88% of job vacancies with 40% of these vacancies found in the construction and real estate sector. In the first quarter of 2023, many employment opportunities were also reported in the transport and logistics sector and the manufacturing industry.

Latvian employers are predominantly seeking qualified individuals who have completed higher education and who are proficient in computer skills. A knowledge of Latvian and other foreign languages is also looked at favorably. As the economy shifts towards higher value-added activities, there has been a significant increase in high-skilled jobs

Remote work is also on the rise in Latvia, with 47.1% of workers involved in financial and insurance activities taking up remote working positions. Women account for the majority of remote workers in Latvia at 58.2%, followed by men at 41.8%. The increase in remote work is a reflection of the Latvian government’s efforts to diversify and expand the national labor force by providing flexible working arrangements, particularly for mothers and carers.

Recruit in Latvia

Latvia offers a multilingual, well-educated EU workforce with strong talent in IT, logistics, manufacturing, and financial services.

We source pre-vetted candidates across industries, handling local salary benchmarks and Latvian labor law requirements.

No local entity needed. Your team can start in days.

What are the Benefits of Recruiting in Latvia?

Latvia is home to a skilled and cost-effective labor force. The government’s promotion of STEM (science, technology, engineering, and maths) activities and institutions has cultivated a highly qualified workforce. Latvia also ranks highly in English proficiency, placing 29th in 2020 in the EF English Proficiency Index and students applying for higher education institutions in Latvia are required to achieve a B2 or higher in English. In addition to English speakers, Latvia is also home to a large population of German and Russian speakers. This multilingual culture makes expanding and recruiting in Latvia much easier.

The Baltic nation is also a prime hub for tech startups. Supported by several government incentives, many upcoming fintech, IT and AI companies are choosing Latvia as the place to grow their businesses. The country’s strong digital infrastructure and highly-developed network system has facilitated many remote employment opportunities for businesses looking to optimize the benefits provided by a tech-driven economy.

Latvia’s central European location also makes it particularly advantageous for employers. With connections to both Eastern and Western Europe, Latvia is a prime location for companies looking to trade with Russia, Scandinavia and other European countries. As Latvia is a member of the EU, Latvian businesses also enjoy access to a large talent pool of national and migrant workers.

What Legal Considerations Apply when Recruiting in Latvia?

The Latvian Labor Law (Darba Likums) governs labor relations and working conditions in Latvia.

Working Hours

The standard working week in Latvia is 40 hours per week, typically split into five days of eight hours per day. Work exceeding the standard hours is classed as overtime and should be compensated at a rate of 1.5 times the employee’s regular hourly wage. Work performed on national holidays or weekends may be compensated at a higher rate. Overtime should not exceed 200 hours per year and a total of eight hours per week.

Wages

The minimum wage in Latvia is updated by the government periodically. As of January 1, 2026, the national minimum wage is €780 per month.

Employee Benefits

Workers are entitled to a minimum of 20 days of paid annual leave. From the fourth day of sickness, employees may claim state benefits.

Pregnant employees may take 20 weeks of maternity leave paid in full. Fathers may additionally take 10 days of paternity leave, provided the leave is taken within two months of the child’s birth.

Employment contracts beyond a month must be provided in writing and written in either Latvian or English. Contracts may be set for a determined or indefinite period and must specify the requirements of the job, work hours and salary and pay schedule. Employment contracts may also determine a set probation period, provided this does not exceed three months.

Social Security

Employers and employees are required to contribute to the national social security system at a total rate of 35.09%. Of this contribution, the employee will contribute 10.5% of their gross salary, and the employer will contribute 24.59%. Social

Security contributions fund pension insurance, sickness insurance, unemployment insurance, health insurance, and accident insurance. In the case of accident insurance, employers must contribute the entire 0.8%. All social security contributions must be withheld from the employee’s salary and remitted to the State Revenue Service (VID).

Income Tax

Latvia applies progressive personal income tax, with rates of 25.5% and 33%, a 20% corporate income tax on distributed profits, and a standard VAT rate of 21%.

What are the Downsides of Recruiting in Latvia?

In 2023, the Central Statistical Bureau data showed that Latvia’s population had declined by 11.1 thousand since the previous year. The population is also aging meaning that labor shortages could increase in the coming years. Whilst this problem has been diverted in previous years thanks to immigrants outnumbering emigrants, the immobilisation of Ukrainian and other Eastern European workers following Russia’s invasion of Ukraine, has exacerbated the issue.

How to Choose a Recruitment Agency in Latvia

Hiring in Latvia requires more than finding the right candidate. Recruitment agencies operating in the country must have a solid grasp of Latvian labor law, including working conditions, employer obligations, social security contributions, and mandatory benefits. This legal fluency is what separates a reliable partner from one that creates compliance risk down the line.

Latvia offers a genuinely competitive talent market. Protected under EU employment law, the country has a highly educated, bilingual workforce with particular strength in STEM and technology fields. A government focus on digital infrastructure, favorable tax policies, and openness to flexible work arrangements have made Latvia an attractive destination for both employers and skilled professionals. For companies hiring in the tech sector especially, the opportunity is significant.

With a workforce of approximately 887,000, Latvia punches well above its size. A local recruitment agency helps employers tap into this pool efficiently, handling the administrative and compliance workload so hiring teams can focus on building the right team rather than navigating paperwork.

Review Client Testimonials and Track Record

Companies may additionally benefit from reviewing the agency’s client testimonials. First account experiences from previous employers who have worked with the agency will help companies to evaluate the standard and reliability of the service provided. The agency should have a good track record of connecting clients with professionals who can support their organizational goals.

Assess Pricing Transparency and Total Costs

It is crucial that employers consider the affordability of the service provided when choosing a recruitment agency. Companies must ensure that they are aware of all applicable costs, including those relating to extra services. Employers may wish to prioritise companies with transparent pricing structures to ensure that there are no hidden costs or fees when using the agency.

Choose Services Aligned to Your Hiring Needs

Recruitment agencies can offer a variety of services with some specialising in specific industries and other offering an executive search service to help companies connect with senior professionals. When choosing an agency, companies must consider their specific hiring needs and select a service that can best support their needs.

Recruit Top Talent Across Europe with Our Recruitment Expertise

Navigating the complexities of hiring and workforce management across different countries can be challenging. Partnering with a reliable recruitment agency ensures you stay compliant with local labor laws, streamline the hiring process, and secure top talent. Learn how Remote People can help you recruit in the following countries:

Ready to expand your team in Latvia? Remote People’s recruitment services offer tailored solutions to meet your hiring needs. Contact us today to discuss how we can help your business grow in Latvia.