This market and benchmark insight report for Latvia prepared by Asinta’s employee benefits consulting Partner in the country, MAI CEE, is an easy way to begin benchmarking employee benefits in Latvia for 2021. The information is easy to understand and gives you a solid footing to help you move forward in your decisions about the benefits you want to offer employees there.
Inside the report, you’ll find details about benchmarking employee benefits in Latvia for 2021 including:
- Statutory Benefits
- Insured Benefits
- Fringe Benefits and Perks
- Plan Setup
The following is an excerpt.
There is a three-tier pension system in Latvia, and the 2nd level deserves the most attention because employers need to pick their pension fund. Commissions, yield, and risk combinations will matter depending on an employee’s age.
1st tier: State compulsory unfunded pension scheme, all persons making social insurance contributions.
2nd tier: State-funded pension scheme, which will eventually be mandatory for all citizens but currently applies to individuals born later than 1971. The participants pick an appropriate investment plan for their age (if you have more than 10 years until your pension, it is worth considering a slightly riskier investment plan).
3rd tier: Private voluntary pension scheme, through which every individual can contribute additional savings for their pension in private pension funds.
The retirement age in Latvia used to be 62 years but is now increasing by 3 months until 2025 when it will be 65 years (for persons with social contributions no less than 15 years).
Other Helpful Information