Everything about social contributions, the mandatory funded pension and voluntary retirement savings for the self-employed in Latvia.
Back to pension hubLegal retirement age (since 2025)
Pension contribution rate
Redirected to Pillar 2
Minimum pension / month
In Latvia, self-employed pensions (pasnodarbinatao persona) are managed by VSAA (Valsts socialas apdrosinasanas agentura). The system rests on 3 pillars: the mandatory state pension (1st pillar), the mandatory funded pension (2nd pillar, 6% of contributions), and voluntary savings (3rd pillar, private pension funds).
Every self-employed person in Latvia must pay mandatory social insurance contributions. The total rate is approximately 31.07%, of which ~24.09% funds the pension. Contributions are calculated on declared income, with a minimum based on the minimum wage (EUR 700/month in 2024).
Self-employed persons pay the full social contributions (employer + employee share), calculated on declared income. The minimum is proportional to the national minimum wage.
Reference minimum wage: EUR 700/month (2024). With 15 minimum years of contributions, the minimum pension is approximately EUR 171/month.
6% of total social contributions are redirected to licensed pension plans managed by asset management companies. For persons born after 1971, this pillar is mandatory. The capital is invested and paid out as an annuity or lump sum at retirement.
Self-employed persons can subscribe to private pension funds (privatie pensiju fondi). Contributions are tax-deductible up to 10% of gross annual income, providing a significant tax advantage.
Contributing on the legal minimum yields a very low pension (~EUR 171/month). Increase your declared base to improve your 1st pillar pension.
Compare management fees and performance of licensed asset managers to maximise the return on your funded pension.
The tax deduction of up to 10% of gross income makes Pillar 3 a highly effective tool for tax optimisation and retirement planning.
A minimum of 15 years is required for the old-age pension. Regularly check your record with VSAA.
BoostPro AI analyses your situation and proposes a personalised contribution and savings strategy.
Start a free diagnosticThe pension contribution rate is approximately 24.09% of declared income. The total social insurance rate is about 31.07%, covering pension, sickness, maternity and unemployment.
Pillar 2 is the mandatory funded pension (valsts fondeta pensija). 6% of social contributions are redirected to pension plans managed by licensed asset managers. It is mandatory for persons born after 1971.
The minimum old-age pension (vecuma pensija) is approximately EUR 171 per month for persons with at least 15 years of contributions. It is periodically indexed.
Yes, contributions to private pension funds (Pillar 3) are deductible up to 10% of gross annual income, reducing personal income tax.
The legal retirement age in Latvia is 65 since 2025. There is no distinction between men and women. A minimum of 15 years of contributions is required.
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