Offering competitive perks and compensation is one of the secrets to keeping exceptional workers. The legislative minimums for Latvia must be included in every company’s benefits management strategy. To distinguish themselves from other companies, they might also provide extra advantages. The Labor Code and other national laws in Latvia define the standards for remuneration. Although the amounts that workers get may vary depending on the industry they work in, the provisions of any relevant collective agreements, and corporate policies. For instance, while it is not necessary, employers may pay the 13th month’s income as an annual bonus.
Mandatory employee benefits in Latvia
Certain mandatory employee benefits must be offered to workers by businesses in Latvia by law. The Latvian Labor Law establishes and governs these benefits:
Yearly leave
There is a right to paid yearly leave for every employee. This break cannot be less than 4 weeks in the calendar year, excluding holidays. Employees may use this time to rest, unwind, and attend to personal concerns. The annual leave may be taken in installments, as agreed upon between the company and the employee. However, one leave must last for a full two weeks. Except in situations when an employment relationship is ended and an employee has not yet utilized all of their paid yearly breaks, cash compensation for annual leave is forbidden.
Sick leave
Employees are entitled to paid sick days from their employers and social insurance system illness benefits while they are ill. They are often qualified for 10 paid sick days from the company. The employee is paid 75% of normal earnings for the second and third days, and 80% of regular wages for the fourth through tenth days. The state’s Social Insurance Agency covers 80% of the employee’s normal income from the eleventh day through the first 26 weeks.
Maternity leave
In Latvia, female workers have the right to maternity leave both during and after delivery. Maternity leave lasts for 126 calendar days, with the option of beginning it 70 days before the anticipated due date. Pregnancy and childbirth-related leave are not included in the calculation of paid annual breaks. In theory, a woman on maternity leave keeps her job. If this isn’t feasible, the employer must offer the woman a job that is comparable or equal to her current one, with comparable working conditions and terms of employment. The amount of the maternity leave payment is based on the employee’s typical annual salary.
Paternity leave
After the birth of their kid, male workers in Latvia are entitled to paternity leave. Ten calendar days are allotted for paternity break, which must be used within two months of the baby’s birth. The amount of the paternity leave payment is based on the employee’s typical annual salary.
Parental leave
Latvia offers both parents parental time to take care of their kid in addition to maternity and paternity leave. Parental leave lasts for a year in total, which the parents may divide equally. Employees get a parental benefit from the state during parental leave, which is a portion of their typical salary.
Study leave
The terms of the collective bargaining agreement or employment contract may provide for paid or unpaid study leave for employees who are simultaneously enrolled in school at any institution. Employees who are writing and defending theses or taking state examinations are given paid study leave for a minimum of 20 working days annually. Employees who get lump sum compensation may take study leave with or without the average wage.
Public holidays
There are various official holidays observed in Latvia, and workers are entitled to paid time off on all of these occasions. Each year, there are a different number of public holidays, although they often include occasions like Christmas, New Year’s Day, Good Friday, Easter Monday, Independence Day, and Labor Day.
Health insurance
In Latvia, employers are obligated to provide their staff with health insurance coverage. Numerous medical services, including doctor visits, hospital stays, and drug costs, are covered by health insurance. The premiums are normally covered by the company, and the employee’s family is also covered.
Safety at work
In Latvia, employers are required to provide a secure and healthy workplace for their workers. This entails doing risk analyses, supplying essential safety gear, and putting policies in place to avoid workplace accidents and occupational illnesses.
Compensation packages for employees in Latvia
Compensation plans for employees in Latvia are made to ensure their well-being and work satisfaction while attracting and retaining bright personnel. Competitive base pay and performance-based incentives are standard components of these packages of benefits. Additionally, non-cash perks like health insurance, retirement benefits, and chances for professional growth are often provided to workers. Work-life balance is further improved and employee well-being is supported via flexible working options and employee assistance programs. These extensive pay packages are a reflection of how highly Latvian employers value and honor their workforce.
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