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Salary and bills are generally paid monthly, so it is very common to talk about your monthly salary.
There are three numbers to be aware of: take home aka on hand pay is what is discussed in a negiotation, before tax aka on paper pay is what appears on the contract, employer cost includes additional taxes that the employer must pay.
Here is an example:
- Take home pay: €2000 or €12.5 per hour or €24,000 per year
- Before tax pay: €2900 or €18 per hour or €34,800 per year
- Employer cost: €3587 or €22 per hour or €43,000 per year
If you offer a take home salary of €2000, you can use the constant multiplier of
1.8 to calculate the true cost since €3587/€2000=1.7935.
Effective tax rate is 100%-€2000/€3587 = 44.24%, so 45%.
Here is the cost of other monthly salaries:
A workday is typically 8 hours long or 40 hours/week or 160 hours/month.
Minimum vacation mandated by law is 20 days aka 4 weeks every year.
- Source: http://www.vgk.lv/calculator
- Official calculator https://www.vid.gov.lv/lv/algas-kalkulators
Flat tax rate of €252/month per employee.
- less than 5 year old
- less than €200k revenue
- not be paying dividents
- innovative product or service
- at least €30k early-stage venture capital funding
The so-called startup law takes effect on January 1, 2017 and it remains to be seen how it will be abused.
Under the table
Some dev shops like Scandiweb or businesses where development is a cost center like 1189.lv offer the employee a choice to get paid a smaller salary above board or more under the table. They will transfer €500 to the employee's microcompany and literally pay the rest in cash in an envelope.
Here are some unverified anecdotal data points (take home, per month)
- Developer with no experience at Accenture: €400 (min wage)
- Junior developer at Draugiem Group (Latvian Facebook): €700
- Software developer at Latvian Radio: €900
- Software developer at Visma (Norwegian outsourcing company): €1000
- US companies (like Ubiquiti Networks): €2500
These are self-reported
- cv.lv http://www.cv.lv/content/index.php?id=1378&keel=inglise
- algas.lv http://www.algas.lv/en/salaries/information-technology
In Riga city center:
- Co-working space: €125 per person
- Office: <€1000 for a small office or <€17/m2
- Office administrator salary: €600-€800
There are many co-working spaces in Riga (TechHub, The Mill, OraculeTang, Birojnīca and more) and the average price I'd say is €125 per person per month.
There are several places where you can go and work for free like the National Library of Latvia and any library at the University of Latvia.
Cost of living
Numbeo provides in my opinion a very accurate representation of averages prices in Riga.
- Minimum wage: €380 before tax (€2.375/h), €260 after tax
- Large Big Mac meal: €4.60
- Cappuccino: €2.15
- Beer: €2.50
- Lunch special on workdays: €4.60
- Apartment, 1 bedroom in city center: €350 + utilities €120
- Bus ticket: €1.15
If you make €1400+, you are top 2% if not 1% (source).