The Cabinet of Ministers of Latvia has adopted a regulation amending the ceiling of the taxable base cap for social security contributions. Under this Regulation, the annual taxable base (income) cap per employee for social security contributions is increased from EUR 52 400 to EUR 55 000 from 1 January 2018.
The share of employers in the current social security contributions in Latvia is 23.59%, calculated on the basis of gross wages and salaries of employees to the maximum limit, and the share of employees is 10.5%. From 2018 onwards, each investment will increase by 0.5% to 24.09% and 11.0% respectively.
