Latvia Amends Taxable Base Cap for 2018 Social Security Contributions

The Latvian Cabinet of Ministers has issued a regulation amending the taxable base cap for social security contributions. According to the regulation, the annual taxable base (income) cap per employee for social security contributions is increased from EUR 52,400 to EUR 55,000 effective 1 January 2018.

The current employer portion of social security contributions in Latvia is 23.59% calculated on the employee's gross salary up to the cap, and the employee portion is 10.5%. From 2018, the con…