Glossary

Minimum monthly wage

In Latvian: Minimālā mēneša darba alga

Taxes Updated

The minimum monthly wage (minimālā mēneša darba alga) is the lowest gross salary that may be paid in Latvia for normal working hours. In 2026 it is EUR 780 a month, and the Cabinet of Ministers sets the amount.

The Labour Law says minimum pay may not be lower than the state minimum, and the Cabinet of Ministers sets both the minimum monthly wage and how the minimum hourly rate is calculated.

The minimum wage anchors several tax rules. If an employee earns less than three minimum wages in a quarter (EUR 2,340 in 2026), the employer pays VSAOI on the difference from its own funds, with exceptions set in the law.

For a company board member with employee status, the VSAOI base is at least the minimum wage. The self-employed pay full VSAOI on income that reaches the minimum wage and 10% pension contributions on anything lower.

Example

An employee on the minimum wage of EUR 780 in 2026, with the tax book filed and no dependants: VSAOI 780 × 10.5% = EUR 81.90, IIN (780 − 81.90 − 550) × 25.5% = EUR 37.77, net pay EUR 660.33. The employer VSAOI is 780 × 23.59% = EUR 184.00.

Legal basis

This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.