Labour Related Incentives

Labour related incentives

Labour-related incentives play a significant role in finding the best personnel and training them. Labour related incentives are particularly important for businesses in labour-intensive industries. There are two agencies in Latvia offering labour-related incentive programmes. State Employment Agency administers programmes related to pre-hiring incentives and Investment and Development Agency of Latvia provides support for training organized in partnerships.

Vacancy registration and employee selection

Program is administered by State Employment Agency.

State Employment Agency offers:

  • Free of charge vacancy registration and employee search utilising the largest CV/Vacancy data base and provides access to the EU database EURES
  • Support in finding suitable candidates
  • Assistance in the first step of selecting the potential employees.

Training of the unemployed at employer’s request

Program is administered by State Employment Agency.

State Employment Agency offers training of the unemployed at the employer’s request for professions in high demand.

Employer shall undertake to employ the trained person(s) for at least 6 months after the training has been completed.

No limit on the number of the unemployed participating in the training.

Maximum eligible costs for the training of one unemployed depend on the programme and qualification; it varies from 355-1547 EUR.

Application procedure:

  1. The employer submits a request to The State Employment Agency;
  2. The Agency organizes and covers the costs for the training of unemployed;
  3. The Agency organizes selection of the unemployed (employer shall participate in the selection process);
  4. The training can commence.
Measures for specified groups of persons

Program is administered by State Employment Agency.

State Employment Agency offers:

  • A grant of a 50 % of monthly salary to employers who employ unemployed persons from vulnerable groups (EU structural fund co-financed program):
    • grant can not exceed the national minimum monthly salary
    • grant is paid for a maximum of six months.
  • A monthly grant to employers who employ disabled unemployed persons (state co-financed program):
    • grant of 100 % of national minimum monthly salary for each disabled person employed
    • a one-time grant for the acquisition of the equipment and facilities to adapt the workplaces for the disabled unemployed persons
    • the costs of the services of the sign language interpreter, companions, occupational therapists
    • grant is paid maximum for a two year period.

Eligible employers:

  • Companies (except hospitals and certain education institutions)
  • Self-employed persons
  • Association and foundations (except political parties).

Duration – from 6 to 24 months.

Support for training organized in partnership

Program is administered by the Investment and Development Agency of Latvia (LIAA). Financial grants are available within the EU Structural Funds program, "Support for employees’ training in partnership".

Training is organized in partnership with the sector associations. Employers contact the corresponding industry associations to register for available trainings and to arrange customized traning. There are 15 participating industry associations.

Eligible costs:

  • Trainers’ salary incl. social tax
  • Salary of employees for the time they are involved in training program (the costs shall not exceed the total amount of all other eligible costs)
  • Study material costs (printed, audio, video) for materials which remain property of employees after training
  • Rent of equipment and premises for training
  • Consultation costs related to the pre-training measurement of employees’ skills
  • Certification and examination costs
  • Business trip expenses for the trainer and employees (per diem, hotel costs, transportation costs) according with limits specified in respective regulations of the Cabinet of Ministers, costs for visas and work permissions
  • Translators and interpreters services costs.

For more information on the labor related incentives email LIAA’s Investment Promotion Division.