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 (regular): 10.50% — from gross salary
- SSIC employee (old-age pensioner): 9.25%
- SSIC employee (disabled / service pension): 9.76%
- SSIC employer (regular): 23.59% — additional on top of gross
- Fixed non-taxable minimum: €550/mo — full amount for all income levels (new law 2026); pensioners: €500/mo
- Dependants: +€250/mo per dependant
- Business risk state duty: €0.36/mo — paid by employer
- Minimum wage 2026: €780 gross
Gross → Net Calculation Formula
// 1. SSIC (employee) — rate depends on employee category
SSIC = Gross × 10.50% (regular) / 9.25% (pensioner) / 9.76% (disabled)
// 2. Fixed non-taxable minimum (NTM) — only with tax book
With tax book, regular: NTM = 550 (fixed for all income levels)
With tax book, old-age pensioner: NTM = 500 (fixed)
Without tax book: NTM = 0
(+ Dependants × 250 + disability/repressed relief)
// 3. Taxable base
Taxable = max(0, Gross − SSIC − NTM − Dependants×250 − Reliefs)
// 4. PIT (25.5% or 33% above threshold)
PIT = Taxable × 25.5%
// 5. Net salary
Net = Gross − SSIC − PIT
SSIC = Gross × 10.50% (regular) / 9.25% (pensioner) / 9.76% (disabled)
// 2. Fixed non-taxable minimum (NTM) — only with tax book
With tax book, regular: NTM = 550 (fixed for all income levels)
With tax book, old-age pensioner: NTM = 500 (fixed)
Without tax book: NTM = 0
(+ Dependants × 250 + disability/repressed relief)
// 3. Taxable base
Taxable = max(0, Gross − SSIC − NTM − Dependants×250 − Reliefs)
// 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, no dependants, regular employee)
| Gross salary | Non-tax. min. | SSIC (emp.) | Taxable | PIT | Net salary | Employer total |
|---|---|---|---|---|---|---|
| € 780 | € 550 | € 81.90 | € 148.10 | − € 37.77 | € 660.33 | € 964.36 |
| € 1,000 | € 550 | € 105.00 | € 345.00 | − € 87.98 | € 807.02 | € 1,236.26 |
| € 1,500 | € 550 | € 157.50 | € 792.50 | − € 202.09 | € 1,140.41 | € 1,854.21 |
| € 2,000 | € 550 | € 210.00 | € 1,240.00 | − € 316.20 | € 1,473.80 | € 2,472.16 |
| € 3,000 | € 550 | € 315.00 | € 2,135.00 | − € 544.43 | € 2,140.57 | € 3,708.06 |
| € 5,000 | € 550 | € 525.00 | € 3,925.00 | − € 1,000.88 | € 3,474.12 | € 6,179.86 |
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 minus SSIC only. The tax book must be registered with only one employer — the primary workplace.
What Does SSIC Cover?
The total SSIC rate for a regular employee is 34.09% (10.50% employee + 23.59% employer). It funds pensions, unemployment benefits, sick pay, maternity benefits and other social services.