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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
- Senior software developer at a local mid-size (for Latvia) company, 3-5y: €1500
- 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).
Where to find developers
If you are looking to hire a developer in Riga, here are some ideas.
There are several meetups taking place in Riga. In my experience, the content is hit or miss but you can use them to pitch your company. Sponsoring a meetup will cost about €250 (for room and beer) and you'll get a banner with your company logo, a couple of words at the beginning to pitch your company and tell them who you are looking for.
One less conventional way to get developers' attention is to get Facebook Ads targeted at them. If they don't have AdBlock installed, they'll see your add and if they are interested (a small challange perhaps) you may get their attention. Facebook Ads are very cheap in Latvia, even less than €0.20 per click.
Another way is to offer scholarships or stipends to very good students. A one-off payment of €1000 or €500 in exchange for them writing their Bachelor's thesis on a topic of your choice. Obviously, the students will be busy writing their thesis, but the universities will give you some publicity this way.
Lastly, you can place an ad on LinkedIn or in the worst case on cv.lv