1.All employees who have reached 15 years of age employed by an employer - a domestic tax payer or other Member State tax payer, active mandatory military service soldiers, persons performing alternative service, persons taking care of a child who has not reached one and a half years of age, persons receiving unemployment benefits, unemployed disabled persons, persons receiving a maternity or sickness benefit, persons who receive child care allowance, persons whose spouse performs diplomatic and consular service in a foreign state and who stay in the relevant foreign state as a spouse of a person performing diplomatic and consular service, persons who are located in a relevant foreign state in the status of spouse of a soldier performing service duties, except in the cases where the soldier participates in an international operation, military training, manoeuvres or is on official travel, and a self-employed person shall be subject to mandatory social insurance.

2.All domestic employees who have reached 15 years of age employed at a foreign employer and foreign employees at a foreign employer shall be subject to mandatory social insurance.

3.Persons who have reached 15 years of age whose permanent place of residence is in the Republic of Latvia and who are not subject to mandatory social insurance in the Republic of Latvia may join the State social insurance voluntarily.

1. Income of employee.

2.Income of self-employed person.

3.Received reimbursement of a domestic employee at a foreign employer and a foreign employee at a foreign employer.

Basis of assessment:

1.Mandatory contributions of an employer and employee shall be all calculated employment income from which personal income tax must be deducted without deduction of the non-taxable minimum, tax concessions and eligible expenses for which the taxpayer has the right to reduce the taxable income.

2.Mandatory contributions of a self-employed person (except natural person, who is paying license fee for carrying out economic activity) shall be the freely selected income from the production of goods, performance of work, provision of services, creative and professional activity and other income (the minimum amount of the object is 2,160 LVL a year).

3.Mandatory contributions of a domestic employee at a foreign employer and a foreign employee at a foreign employer shall be the reimbursement received.

4.The minimum amount of voluntary insurance contributions is 2,160 LVL.

Deduction:

The object of mandatory contributions shall not include the contributions made in favour of an employee by an employer in private pension funds in conformity with licensed pension plans and paid amounts of life assurance (with accumulation of funds) premiums which in total do not exceed 10 percent of gross remuneration calculated for the employee in the current calendar year, and paid amounts of life (without accumulation of funds), health or accident insurance premiums which in total do not exceed five minimum salaries specified by the Cabinet in the current calendar year, if:

1.the time period of the life assurance contract (with accumulation of funds) is not shorter than five years;

2.the time period of the life (without accumulation of funds), health or accident insurance contract is not shorter than one year;

3.the provisions of the life, health and accident insurance contract provide that the insurance indemnity for a case of insurance is paid to the insured person (or the beneficiary thereof), other amounts related to the operation of the contract or its termination shall be paid to the employer, and do not provide loan issuance to the insured persons.

Payments of mandatory insurance premiums of an employer in the cases specified in regulatory enactments when an insurance contract was entered into in favour of an employee shall not be the object of mandatory contributions.

Social security contributions are payable from annual 2,160 LVL a year.