BDO Latvia labour market analysis 2025
BDO Latvia labour market analysis 2025
BDO Latvia’s labour market analysis for 2025 reveals an interesting balance: Lithuania currently offers the most favourable environment for employers, Estonia stands out for employees, while Latvia ranks in between the two models. The data shows that with a gross salary of €2,000, an employer’s total cost is €2,472.16 in Latvia, €2,676 in Estonia, and only €2,035.40 in Lithuania.
This means that, on average, for one employee earning €2,000 gross per month, a business in Lithuania spends €436.76 less than in Latvia and €640.60 less than in Estonia - equivalent to annual savings of €5,241.12 and €7,687.20 respectively.
In the article published by Dienas Bizness, Viesturs Briežkalns, Partner and Head of Business Services Outsourcing, highlights that Latvia’s tax calculation principles are more favourable for employees with dependents - €250 per month per dependent reduces personal income tax.
However, in practice, an employee in Latvia would need four children for their net salary to exceed what they would receive in Estonia. The article explains how these differences affect the business environment, workforce mobility, and investment decisions across the Baltics - and what it means for companies and professionals planning regional expansion.
Read the full analysis and find out where it is currently most advantageous to grow a business or career here.
This means that, on average, for one employee earning €2,000 gross per month, a business in Lithuania spends €436.76 less than in Latvia and €640.60 less than in Estonia - equivalent to annual savings of €5,241.12 and €7,687.20 respectively.
In the article published by Dienas Bizness, Viesturs Briežkalns, Partner and Head of Business Services Outsourcing, highlights that Latvia’s tax calculation principles are more favourable for employees with dependents - €250 per month per dependent reduces personal income tax.
However, in practice, an employee in Latvia would need four children for their net salary to exceed what they would receive in Estonia. The article explains how these differences affect the business environment, workforce mobility, and investment decisions across the Baltics - and what it means for companies and professionals planning regional expansion.
Read the full analysis and find out where it is currently most advantageous to grow a business or career here.