Glossary

Self-employed person (pašnodarbinātais)

In Latvian: Pašnodarbinātais

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A self-employed person (pašnodarbinātais) is someone who pays Latvian state social insurance contributions themselves from their own income rather than through an employer. The group includes sole proprietors (IK), people registered with VID as performers of economic activity, sworn advocates, notaries, auditors and doctors in private practice.

The definition is in the Law On State Social Insurance. A self-employed person pays contributions once a quarter, by the 23rd of the month after the quarter.

If monthly income is below the minimum monthly wage (EUR 780 in 2026), they pay 10% of actual income for pension insurance. If income reaches the minimum wage, they pay contributions on a chosen contribution base of at least the minimum wage, plus 10% for pension insurance on the difference between actual income and that base.

A self-employed person is not an employee: an employer calculates and pays contributions for its staff. A member of an SIA who works in their own company is usually its employee or board member, not self-employed.

Example

Anna, a translator, is registered with VID as performing economic activity. In March she earns EUR 600, below the EUR 780 minimum wage, so for that month she pays 10% for pension insurance, or EUR 60, together with the rest of the quarter by 23 April.

Legal basis

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