As of 2024, salaries for foreign workers in Latvia must match the industry average, not the national average. This is especially relevant for the construction sector. Let’s break down what it means for employers and workers.

What Has Changed?

Previously, employers hiring foreign workers had to offer at least the national average gross salary — in 2024, that’s €1,548/month. But starting July 1, 2024, new regulations require that foreign workers be paid the average salary in the respective industry.

This applies to all positions where foreigners are employed based on a residence permit for employment.

Why Is This Important?

Switching to industry-based salaries addresses several key issues:

  • Promotes fair working conditions for both locals and foreigners;
  • Prevents wage dumping and unfair competition;
  • Encourages hiring qualified workers;
  • Helps companies plan realistic payroll budgets based on sector standards.

How It Works in Practice

Employers must now refer to official statistics for their industry average salaries.

Example 1: Construction

Previously, a €1,200 salary might have been enough. Now, if the average wage in the construction sector is €1,500, this is the minimum that must be paid. In some collective agreements, €930 may be allowed — but only under specific conditions.

Example 2: Manufacturing

The average wage is about €1,100–1,300. Employers must meet this level for foreign hires.

Example 3: IT and Finance

Average salaries in ICT exceed €2,300, and in banking — over €2,500. Foreign specialists in these sectors must now be offered competitive pay.

Required Minimum Subsistence

In addition to salary requirements, Latvia defines a minimum monthly subsistence level for residence permits — €700/month in 2024. However, for employment purposes, the industry salary is what counts.

See details here:
🔗 PMLP on required income

What This Means for Employers

  • You must check the average wage for your sector before inviting a foreign worker;
  • The salary in the application must be justified with data;
  • Minimum national wage is no longer sufficient in many industries;
  • Review your recruitment and pay strategy to attract skilled workers.

Conclusion

This change is a step toward a more transparent, fair, and attractive labor market in Latvia. It may raise short-term costs but contributes to long-term competitiveness and professional workforce quality.

HR Line EU can help you understand the new rules, prepare documents, and consult you on recruiting or working in Latvia under the updated salary system.