Latvia, one of the Baltic States, has been steadily increasing its minimum wage to support workers and improve living standards. Whether you are a local employee or a foreign worker planning to move to Latvia, understanding the minimum wage is essential for budgeting and career planning.

1. Current Minimum Wage in Latvia

As of January 1, 2025, the statutory minimum wage in Latvia is:

• €740 per month for a standard 40-hour workweek

• Hourly wage: approximately €4.09 per hour

This monthly minimum wage translates to roughly €8,880 per year assuming 12 monthly payments.

2. Who Receives the Minimum Wage

The minimum wage in Latvia applies to:

• Full-time employees working at least 40 hours per week

• Temporary and part-time workers (pro-rated according to hours worked)

• Employees in both public and private sectors

Certain industries may offer higher base salaries due to collective agreements, skill requirements, or labor shortages.

3. Recent Changes

• In 2024, the minimum wage was €700 per month

• The 2025 increase to €740 reflects Latvia’s commitment to improving worker welfare and aligning wages with EU standards

The increase aims to reduce income inequality and ensure workers can cover essential living costs.

4. How the Minimum Wage Is Calculated

Latvia’s minimum wage is set by the government and considers:

• Inflation rates

• Average salaries across sectors

• Cost of living

• Economic growth and productivity

Employers are legally required to pay at least the minimum wage. Failing to do so can result in penalties.

5. Impact on Workers

The minimum wage ensures:

• Coverage of basic living expenses (housing, food, utilities)

• A fair baseline for negotiating higher salaries

• Eligibility for certain social benefits tied to income

However, compared to other EU countries, Latvia’s minimum wage remains among the lowest in the European Union, highlighting the need for additional skill-based training or higher-paying sectors for better income.

6. Additional Benefits for Workers

Workers in Latvia may receive additional compensation alongside the minimum wage:

• Overtime pay

• Holiday pay

• Paid vacation (at least 20 working days annually)

• Social security contributions and healthcare coverage

These benefits significantly improve overall take-home compensation.

The minimum wage in Latvia for 2025 is €740 per month, providing a baseline for workers in the country. While it ensures basic living standards, workers often seek specialized skills, overtime, or employment in high-demand sectors to increase earnings. Knowing the minimum wage is essential for budgeting, job hunting, and planning a move to Latvia.