1 July 2021, amendments to the Law on State Social Insurance enter
into force, and minimum mandatory State social insurance contributions (minimum
contributions) are implemented by these amendments.
What is the minimum object of contributions?
minimum object of contributions per quarter are three minimum monthly salaries
stipulated by the Cabinet of Ministers (the minimum monthly salary in 2021 is
500 Euro) – 1,500 Euro.
salary is less than the minimum salary of 500 Euro per month or
1,500 Euro per quarter as stipulated by the Cabinet of Ministers, the
employer (incl. self-employed and payer of micro-enterprise tax) must pay the
minimum contributions for their employees.
How is it determined whether minimum
contributions are made for the employee?
employee is working for several employers or at the same time, is both an
employee and a self-employed person, the income is summed up to determine
whether it reaches the minimum amount.
person is both an employee and a self-employed person at the same time, the
minimum contributions would have to be added only by the employer.
employee is working for several employers, and the total income of the employee
does not reach the minimum contributions, each employer will have to add a part
of contributions in proportion to the employee’s salary and in proportion to
the time during which the employee has the status of an employee with the
How will the minimum contributions be
minimum contributions that will have to be paid additionally by the employer
and the self-employed are calculated by the State Social Insurance Agency
(SSIA) within three months after the end of the quarter and shall be notified
the State Revenue Service (SRS) until the 20th date of the third month.
three months after the end of the calendar year SSIA shall recalculate the
minimum contributions taking into account the object of minimum mandatory
contributions for that year, and then shall inform SRS on overpaid minimum
contributions of the employer and the self-employed person.
notifications on minimum contributions will be sent both on quarterly and
annual basis in general, and the employer will have to make payments for each
quarter to comply with the statutory requirement on minimum contributions.
employers will receive the first information on minimum contributions on
20 December 2021 – for the third quarter of this year. Whereas, SSIA
will perform recalculation for 2021 until 23 March 2022.
send the information on calculated minimum contributions via Electronic
Declaration System (EDS).
Employer will have the duty to make the minimum contributions for the employees
until the 23rd day of the third month since the date of receipt of the notice.
The employee’s declared salary in July 2021 is 300 Euro,
in August – 300 Euro, and in September – 500 Euro. A total of
SSIA will calculate the minimum contributions per quarter until
20 December 2021. On 21 December 2021, the employer
receives in EDS information on minimum contributions calculated for the
The employer’s additional obligations: from 400 Euro
(1,500 Euro – 1,100 Euro) MSSIC 136.36 Euro (34.09 % from
The Employer must pay additional MSSIC obligations until
23 March 2022.
In which cases the minimum contributions do not
have to be paid?
contributions do not have to be made for the following employees:
a convict who is employed while serving the
a person who has reached the age entitling it
to receive the State old age pension or to whom the State old age pension has
been granted (including early pension);
a person with group I and II disability;
a person in whose salary tax book or the
spouse’s salary tax book has been registered a child under three years of age;
a person in whose salary tax book or the spouse’s
salary tax book have been registered three or more children up to 18 years of
age or up to 24 years of age, of which at least one is under seven years of
age, while the child continues comprehensive, vocational, higher, or special
a person in whose salary tax book or the
spouse’s salary tax book is register a minor child which in accordance with the
laws and regulations has been recognised as a disabled person;
a person up to 24 years of age who is studying
at a comprehensive, vocational, higher (full time studies), or special
educational institution, except the time when the relevant person has stopped
training or studies;
a person employed by an employer registered
with the Registry of Social Services Providers;
a person who is subject to social exclusion
risk and is employed by an employer with a granted social enterprise status;
person who provides a State-funded attendant (for a child up to 18 years of
age) or an assistant service, or a care service which is funded by the local
government for a child up to 18 years of age, or a care service funded within a
project of the EU policy instruments for a child up to 18 years of age.
need additional information, please contact Leinonen!
prepared by Leinonen Latvia Tax & Legal Advisory Department