How to Calculate Gross to Net Salary in Latvia 2026
Gross salary is the salary before tax deductions — the amount stated in the employment contract. Net salary (take-home pay) is what the employee receives after all deductions.
2026 Tax Rates for Salary Calculation
- PIT: 25.5% — on income up to €105,300/year (€8,775/month)
- PIT: 33% — on income exceeding €105,300/year
- SSIC employee: 10.5% — from gross salary
- SSIC employer: 23.59% — from gross salary (on top of employer costs)
- Non-taxable minimum: €550/mo — full amount at income ≤ €500/mo; decreases linearly to zero at €1,800/mo
- Dependants: +€250/mo per dependant (child or disabled person)
- Minimum wage 2026: €780 gross
Gross → Net Calculation Formula
// 1. SSIC (employee)
SSIC = Gross × 10.5%
// 2. Non-taxable minimum (NTM)
If Gross ≤ 500: NTM = 550
If 500 < Gross < 1800: NTM = 550 − (Gross − 500) × (550 / 1300)
If Gross ≥ 1800: NTM = 0
NTM += Dependants × 250
// 3. Taxable base
Taxable = max(0, Gross − NTM)
// 4. PIT (25.5% or 33% above threshold)
PIT = Taxable × 25.5%
// 5. Net salary
Net = Gross − SSIC − PIT
SSIC = Gross × 10.5%
// 2. Non-taxable minimum (NTM)
If Gross ≤ 500: NTM = 550
If 500 < Gross < 1800: NTM = 550 − (Gross − 500) × (550 / 1300)
If Gross ≥ 1800: NTM = 0
NTM += Dependants × 250
// 3. Taxable base
Taxable = max(0, Gross − NTM)
// 4. PIT (25.5% or 33% above threshold)
PIT = Taxable × 25.5%
// 5. Net salary
Net = Gross − SSIC − PIT
Accurate Gross → Net Examples 2026 (tax book submitted, no dependants)
| Gross salary | Non-tax. min. | PIT | SSIC (emp.) | Net salary | Employer total |
|---|---|---|---|---|---|
| € 780 | € 431.54 | − € 88.86 | € 81.90 | € 609.24 | € 964.00 |
| € 1,000 | € 338.46 | − € 168.69 | € 105.00 | € 726.31 | € 1,235.90 |
| € 1,500 | € 126.92 | − € 350.13 | € 157.50 | € 992.37 | € 1,853.85 |
| € 2,000 | € 0 | − € 510.00 | € 210.00 | € 1,280.00 | € 2,471.80 |
| € 3,000 | € 0 | − € 765.00 | € 315.00 | € 1,920.00 | € 3,707.70 |
| € 5,000 | € 0 | − € 1,275.00 | € 525.00 | € 3,200.00 | € 6,179.50 |
Why the Tax Book Matters
The tax book (or its electronic version in EDS) allows the employer to apply the employee's non-taxable minimum. Without it, PIT is calculated on the full gross salary. The tax book must be registered with only one employer — the primary workplace.
What Does SSIC Cover?
The total SSIC rate is 34.09% (10.5% employee + 23.59% employer). It funds pensions, unemployment benefits, sick pay, maternity benefits and other social services.