I recently started working in a restaurant in Latvia. My hourly rate is €6.50, I worked 161 hours in August, and my gross pay was €1,046.50. But after deductions (€109.88 social contributions + €238.84 income tax), I only received €697.78.
That’s about 33% tax, which feels very high. In my previous warehouse job, I earned less per hour (€4.63), but after taxes I took home more (about €858 net),

by WorldUpdates____

15 comments

  1. 25.5% income tax + 10.5% social, this sounds about right

    Edit: this is the flat rate, only time you will not be taxed is if you earn less than €500 a month

  2. It is usually that 1/3 goes in taxes. Maybe previous job was avoiding taxes? Just a guess.

  5. 33% seems to be the rate for “any income over 105.300€”

    if you won’t earn that much you’ll probably get the tax return, but you can check up with the tax office what’s going on, perhaps you didn’t pay enough last year or somehow declared that you’re gonna earn more than 105k this year?

  6. You need to submit your payroll tax book. If you do that your neto salary should be 827.83. Note that you can submit your payroll tax book to ony one workplace, and that workplace will be where monthly non-taxable minimum will be calculated.

  7. Remember to apply for tax return next year to get atleast little back.

  8. That isn’t even the full tax. There is still an employer part, you just don’t see it.

  10. Looks about right according to calculators, but it looks like you need to do one small formality to get the best tax rate for your income bracket. Otherwise you will be overpaying tax. Overpaid tax for the previous years can be returned to you anually by filling the income declaration after March 1st of every year.

    To fix it and not overpay – You have to assign a payroll tax booklet in our tax declaration page.
    You can do it here https://eds.vid.gov.lv/login/

    And read more about it and how to do it here
    https://www.vid.gov.lv/en/services/payroll-tax-booklet

  11. Something doesn’t make sense. 4,63 per hour is 740 gross. Either you worked a lot more hours or you worked more hours and your employer didn’t pay any taxes.

  12. Thats pretty much normal tax rate here.
    Did you had night job or overhours?

  14. Looks about right. I always estimate salary by multiplying bruto times 0.7. So 1000€ bruto is 700€ neto. And if you want to know how much did your employer paid(also rough estimate) add 1/4 of bruto. So in this case around 1250€.

  15. Because you owe the country for good roads, free education, amazing health system and rail baltic

Comments are closed.