Net salary
In Latvian: Neto alga
Net salary (neto alga) is what an employee receives after VSAOI and IIN are withheld. In 2026 it is gross salary minus 10.5% VSAOI, minus 25.5% IIN on what remains after VSAOI, the EUR 550 non-taxable minimum and any reliefs.
The non-taxable minimum and the EUR 250 relief per dependant reduce IIN only at the workplace that holds the payroll tax book. The same gross salary therefore gives lower net pay at a second job.
If annual income exceeds EUR 105,300, the annual return charges 33% IIN on the excess, so extra tax may be due after the year ends. An unused non-taxable minimum or eligible expenses can be reclaimed in the return.
Example
Gross salary EUR 2,000, tax book filed, no dependants: VSAOI 2,000 × 10.5% = EUR 210; IIN (2,000 − 210 − 550) × 25.5% = EUR 316.20; net salary 2,000 − 210 − 316.20 = EUR 1,473.80.
How Fakts handles it
The Fakts salary calculator works out net pay from a gross amount, or the gross salary needed for a target net amount, at 2026 rates.
Legal basis
- Law on Personal Income Tax, Section 15 likumi.lv
- Law on Personal Income Tax, Section 12 likumi.lv
- Law on State Social Insurance, Section 18 likumi.lv
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.