Latvia Severance & Redundancy Pay Calculator
Calculate statutory severance pay (Atlaišanas pabalsts) under Section 112 of the Labor Law: graduated tiers (1 to 4 months' salary) based on length of service, and 1-month notice in EUR.
⚖️ Darba attiecību un algas dati (Severance Input)
📊 Atlaišanas pabalsta aprēķins (Severance Assessment)
| Aprēķina pozīcija (Statutory Line) | Likuma norma | Summa (EUR €) |
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❓ Biežāk uzdotie juridiskie jautājumi (FAQ)
How is statutory severance pay structured under the Latvian Labor Law?
Under Section 112 of the Latvian Labor Law (Darba likums), when an employer terminates an employment contract due to redundancy (darbinieku skaita samazināšana) or company liquidation, severance pay is graduated strictly by service tenure: 1 month's average earnings for tenure under 5 years; 2 months' earnings for 5 to 10 years; 3 months' earnings for 10 to 20 years; and 4 months' average earnings for tenure exceeding 20 years.
What is the mandatory notice period before dismissal in Latvia?
Under Section 103, an employer terminating a worker due to staff redundancy or enterprise liquidation must provide written notice not less than one (1) month in advance.
How is average earnings calculated for severance pay in Latvia?
Under Section 75, average monthly earnings are derived from the employee's gross earnings over the preceding six (6) calendar months, dividing by actual days worked and multiplying by average monthly working days (typically 21.75 days).
Is severance pay subject to payroll taxes (VSAOI and IIN)?
Yes. Severance pay in Latvia is considered employment income and is subject to standard mandatory state social insurance contributions (VSAOI 10.5% employee / 23.59% employer) and personal income tax (IIN 20%/23%).
Is severance pay owed if an employee resigns voluntarily?
Generally no. Severance pay is required only when termination is initiated by the employer (without employee fault) or when an employee terminates employment for an important reason involving moral or safety violations by the employer (Section 100(5)).
Engr. Muhammad Shahzad
Verified Baltic Statutory Systems & Fiscal SpecialistChartered Systems Engineer and Public Finance Modeler. Specializing in Baltic labor standards (Latvian Labor Law), State Social Insurance Agency (VSAA) architectures, Enterprise Income Tax (UIN 20/80 distribution model), and State Revenue Service (VID) tax schedules under Republic of Latvia statutes.