Latvia’s Darba likums (Labour Law) sets a clear, employee-friendly floor for annual leave: every worker is entitled to at least four calendar weeks of paid rest each year. That translates to 20 working days for employees on a standard five-day week — or roughly 28 calendar days when public holidays and weekends fall within the leave period. In the Baltic and EU context, this entitlement sits comfortably above the EU Working Time Directive’s minimum of four weeks, reflecting Latvia’s commitment to worker welfare since accession in 2004. Whether you are an employer setting up payroll in Riga or an HR manager onboarding staff across the Baltics, understanding Articles 124–140 of the Darba likums is essential for compliant, fair leave management.

Key Takeaways

Statutory minimum: 4 weeks (20 working days) of paid annual leave per year under the Darba likums, Articles 124–140.
Pay during leave: employees receive their average earnings — not just base salary — for the entire leave period.
First-year pro-ration: leave is accrued and pro-rated in the first year based on months worked.
All employees covered: every employee, regardless of contract type or hours, is entitled to annual leave.
Termination payout: any accrued but unused annual leave must be paid out when employment ends — this is non-negotiable under Latvian law.

The Statutory Entitlement

Under Articles 124–140 of the Darba likums, every employee in Latvia is entitled to a minimum of 4 weeks of paid annual leave per year. For employees working a standard Monday-to-Friday schedule, this equals 20 working days. When you count the calendar days within that period — including weekends — the leave block typically spans around 28 calendar days.

Latvia meets and mirrors the EU Working Time Directive’s four-week minimum without layering on additional statutory days at the national level beyond that floor. Some collective agreements and individual contracts grant more generous entitlements, but four weeks remains the guaranteed baseline for all workers.

The entitlement accumulates across the working year. Employees who have completed a full year of service with one employer hold the full four-week entitlement. Leave may generally be taken in one continuous block or split by agreement between employer and employee, provided at least two weeks are taken consecutively where practicable — a common requirement across many EU member states.

For comparison, neighbouring Lithuania and Estonia operate under similarly structured Baltic labour codes, while Finland applies a more generous accrual model linked to working days per month worked, and Germany sets its federal minimum at 24 working days based on a six-day week.

Eligibility

All employees in Latvia are entitled to annual leave under the Darba likums. There is no minimum tenure threshold required before the right to leave arises — it begins accruing from the first day of employment.

Pro-ration in the first year: In a new employee’s first year of service, annual leave is pro-rated based on the number of months worked. An employee who has worked six months, for example, accrues approximately half of the annual entitlement. This ensures fair treatment without creating a cliff-edge where employees must wait an entire year before accessing any leave at all.

Full-time and part-time employees alike are entitled to the four-week minimum. The Darba likums does not carve out exceptions based on contract type or working hours — the entitlement is universal across the employed workforce.

Annual Leave Pay

During annual leave, employees in Latvia must receive their average earnings — not simply their base or contractual salary. This distinction matters in practice: average earnings calculations take into account variable pay components such as bonuses, overtime pay, and other regular supplements that form part of the employee’s typical remuneration.

The average earnings figure is generally calculated over a representative reference period prior to the leave, in line with the methodology set out under the Darba likums and associated regulations. Employers must ensure that the leave pay calculation reflects what the employee actually earns on average, rather than defaulting to a lower base rate. Underpaying annual leave — even innocently, by ignoring variable components — can expose employers to claims and regulatory scrutiny.

This approach is consistent with EU-wide principles established by the Court of Justice of the EU, which has consistently held that holiday pay must correspond to normal remuneration so that workers are not financially disadvantaged when they take their entitled leave.

Employer Obligations

Latvian employers have three core statutory obligations with respect to annual leave:

Grant four weeks of paid annual leave per year. Employers cannot deny or unreasonably defer annual leave. The timing of leave is typically agreed between employer and employee, but the employer must facilitate the entitlement within the working year.
Pay the employee’s average earnings during annual leave. As outlined above, leave pay must reflect average earnings — including variable components — not just the base wage. Payment must be made before or at the time the leave period begins, consistent with standard payroll practice.
Pay for unused annual leave on termination of employment. When an employment relationship ends — whether through resignation, redundancy, or dismissal — any accrued but untaken annual leave must be paid out in full as part of the final settlement. This is a statutory requirement under the Darba likums and cannot be waived by agreement.

Can't keep up with employee's
leave emails? Track your employee's leave with Leave Balance

Try our demo Sign Up

Common Pitfalls

Even straightforward leave regimes generate compliance errors. The most common issues Latvian employers encounter include:

Not paying out unused leave on termination. This is the most frequent compliance failure. Some employers treat unused leave as forfeited when an employee leaves — under the Darba likums, this is unlawful. Accrued leave must be paid out regardless of the reason for termination or the length of notice given.
Calculating leave pay on base salary only. Using the contractual base rate rather than average earnings shortchanges employees and creates retrospective liability. Always use the correct average earnings methodology, particularly where staff receive performance bonuses, shift allowances, or regular overtime.
Failing to pro-rate correctly in the first year. New starters are sometimes either denied leave entirely for their first year (unlawful) or granted the full annual entitlement before it has fully accrued (operationally risky). A correct month-by-month accrual system avoids both problems.
Not keeping adequate leave records. Latvian labour law requires employers to maintain records of working time and leave. Poor record-keeping makes it difficult to demonstrate compliance and complicates final settlement calculations on termination.

Frequently Asked Questions

How many days of annual leave are employees entitled to in Latvia?

Employees in Latvia are entitled to at least 4 weeks (20 working days) of paid annual leave per year under the Darba likums (Labour Law), Articles 124–140. For a standard five-day working week, this equates to approximately 28 calendar days including weekends.

When do employees start accruing annual leave in Latvia?

Annual leave accrues from the first day of employment. In the first year, entitlement is pro-rated based on the number of months worked, so there is no qualifying period before accrual begins.

How is annual leave pay calculated in Latvia?

Leave pay in Latvia must be based on the employee’s average earnings, not just their base salary. This means variable pay components — such as bonuses and regular overtime — are included in the calculation, ensuring employees receive normal remuneration during leave.

Can an employer refuse to let an employee take annual leave?

No. Employers in Latvia are required to grant employees their statutory annual leave. While the timing of leave can be agreed between both parties, employers cannot simply deny or indefinitely defer the entitlement.

What happens to unused annual leave when employment ends?

All accrued but unused annual leave must be paid out to the employee as part of their final settlement when employment terminates. This applies regardless of the reason for termination and cannot be waived by agreement — it is a statutory obligation under the Darba likums.

Does Latvia offer more than four weeks for certain employees?

The Darba likums sets four weeks as the statutory minimum for all employees. Collective agreements or individual employment contracts may grant additional leave beyond this floor. Certain categories of workers — such as those in hazardous conditions or employees with disabilities — may be entitled to supplementary leave under separate regulations.

How Leave Balance Helps

Managing annual leave compliance across the Baltics — or across multiple jurisdictions — requires more than a shared spreadsheet. Leave Balance gives HR teams and employers a single platform to configure country-specific leave policies, enforce correct accrual rules from day one, and generate the records needed to demonstrate compliance.

With Leave Balance, you can:

Set up Latvia-specific leave policies with correct accrual rates and pro-ration rules for new starters.
Track leave balances in real time so that nothing accrues unnoticed until a costly termination payout surprises you.
Run reports that show who has untaken leave before your financial year closes.
Integrate with Slack or Microsoft Teams so employees can request and managers can approve leave without leaving their existing tools.

At a flat rate of $10 per month (or AUD $29/month) with unlimited employees, Leave Balance is built for the small and mid-sized businesses that need compliant leave management without per-seat pricing that scales against them.