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Minimum wageChecked 15.10.2026

Minimum wage in Latvia in 2027

820 euros a month. On 8 October 2026 the National Tripartite Cooperation Council backed the Finance Ministry's proposal to raise the minimum wage by 40 euros, as planned, rather than the 55 euros the formula would give. The Cabinet still has to adopt it by regulation.

In force in 2026
780 EUR
Backed for 2027
820 EUR
The formula would give
835 EUR
Cabinet regulation
not adopted yet
Figures

What 820 euros means in pay

The calculation is for the minimum wage in full-time work: an employee whose payroll book is with this employer, no dependants, standard status. The 2027 columns use the 570 euro tax-free allowance, which is already law.

Gross pay20262027, backed2027, formula
Gross pay780,00 EUR820,00 EUR835,00 EUR
Social contributions, employee 10.50%81,9086,1087,68
Income tax37,7741,7945,22
Net, take-home660,33692,11702,11
Social contributions, employer 23.59%184,00193,44196,98
Cost of the job964,001013,441031,98
Cost difference from 2026+49,44+67,97

The arithmetic comes from the same module as the 2027 salary calculator, tested against the transitional provisions of the law.

Calculate your own pay
How it is set

How the minimum wage is set

The Cabinet of Ministers sets the minimum monthly wage in Latvia. The basis is section 61(2) of the Labour Law, and the method of calculation and review is in Cabinet Regulations No. 656 (24 November 2015) and No. 730 (19 November 2024).

In the Ministry of Welfare's report the minimum wage has to equal 46% of the average gross wage calculated by the Central Statistical Bureau over the latest 12 months available. The average gross wage in 2025 was 1815 euros, so 834.9 euros, rounded to 835. That is 55 euros, or 7%, more than this year.

The government's 2024 medium-term plan had 820 euros for 2027. That is 45.2% of the previous year's average wage, which is less than the formula asks for. The Free Trade Union Confederation of Latvia called for at least 835 euros, while the Finance Ministry and the Employers' Confederation of Latvia asked to keep to the plan: a faster rise would raise wage costs for municipalities and businesses, and bring skilled workers' pay closer to the minimum. On 8 October the tripartite council backed 820 euros.

Timing

When 820 euros becomes binding

The Cabinet of Ministers sets the minimum wage, so the tripartite council's backing is not yet law. 820 euros becomes binding when the Cabinet amends Regulation No. 656, normally in November. This page will note it the same day.

Last checked on 15 October 2026: the Cabinet regulation has not been adopted yet.

Meaning

What it means for you

If you earn more than the minimum

The minimum wage does not change tax rates or reliefs. Your 2027 net pay can be worked out today, because the 570 euro allowance and the rates are already in law.
Salary calculator 2027

If you are an employer

The lowest salary costs 40 euros more in 2027, plus 23.59% employer contributions on top of that. The calculator shows which salary fits your budget.
Cost of an employee
Questions

Common questions about the minimum wage

What is the minimum wage in Latvia in 2026?

780 euros a month from 1 January 2026. The Cabinet of Ministers sets the minimum monthly wage under section 61(2) of the Labour Law.

What will the minimum wage be in 2027?

820 euros a month. On 8 October 2026 the National Tripartite Cooperation Council backed the Finance Ministry's proposal to raise the minimum wage by 40 euros, as the government's 2024 plan set out, rather than to the 835 euros the Ministry of Welfare's formula gives. The Cabinet of Ministers sets the minimum wage, so 820 euros still has to be adopted by regulation, normally in November (checked on 15 October 2026).

How is the minimum wage calculated?

In the ministry's report the minimum wage has to equal 46% of the average gross wage calculated by the Central Statistical Bureau over the latest 12 months available. The average gross wage in 2025 was 1815 euros, so 834.9 euros, rounded to 835. That is 55 euros, or 7%, more than this year. For 2027 the formula was not followed: the tripartite council backed the planned 820 euros.

How much is take-home pay on the 2027 minimum wage?

On the 820 euros the tripartite council backed, take-home pay is 692.11 euros a month. On the formula's 835 euros it would be 702.11 euros. This year 780 euros leaves 660.33 euros. The calculation is for the standard status, with the payroll book at this employer and no dependants, and the 570 euro tax-free allowance that is already law for 2027.

What does the minimum wage cost an employer?

Employer social contributions of 23.59% are added to the gross pay. At 820 euros an employee costs 1,013.44 euros a month; at the formula's 835 euros it would be 1,031.98 euros. This year, at 780 euros, the cost is 964.00 euros.

Does the minimum wage affect my net pay if I earn more?

No. The minimum wage only sets the lowest lawful gross pay for full-time work, not tax rates or reliefs. If your pay is above it, your 2027 net pay can be worked out today: the 570 euro allowance and the rates are already in law.

Sources

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