Riga Startups

Calculators

Startup law relief

What the flat payroll charge saves against ordinary payroll tax, what it costs the employee, and whether your company can have it at all.

Startup law calculator

Rates, thresholds and periods from the ledger of the startup law guide.

The flat charge is the same whatever this is, so the relief is nil at EUR 1,560.00 and grows above it.

Used for the liability below, which is what you would owe if the right were lost.

Ordinary contributions, 34.09%
EUR 1,022.70
Fixed payment on EUR 1,560.00
EUR 531.80
Saved each month, per employee
EUR 490.90
Across 3 employees, a year
EUR 17,672.40
Income tax the employee stops paying, 25.5%
EUR 765.00

The charge does not move with the salary, so the relief is nil at EUR 1,560.00 and grows with every euro above it. It is worth most on the senior hires a young company finds hardest to afford, which is the point of it.

What the employee gives up

Benefits accrue on
EUR 1,560.00, not EUR 3,000.00
Their own pension top-up, 10% of the gap
EUR 144.00

Sickness, unemployment and pension all follow what was contributed, so a senior person accrues at the rate of somebody earning far less. They also lose the non-taxable minimum, dependant allowances and expense deductions on this income. The law makes you put the arrangement in the employment contract for this reason.

If the right were lost today

Owed within a month, for 6 months in the programme
EUR 22,606.20

Losing the right mid-period means recalculating every tax for the whole support period under ordinary rules, with late payment interest on top, crediting the fixed payments already made. It grows with every month in the programme, and it is not on anybody’s balance sheet.

Every rate above is read from the ledger in The Latvian Startup Law, Honestly, last checked 8 September 2026. That guide carries what a calculator cannot: who each rule does not apply to, what changes above a threshold, when a declaration is required, and what the figure is not.