VSAOI

VSAOI (State Mandatory Social Insurance Contributions) are compulsory social contributions paid to the state by both the employer and the employee. These contributions provide a person with social protection: pensions, sickness benefits, unemployment benefits, maternity and parental benefits, and other social payments.

VSAOI form the foundation of Latvia’s social insurance system and directly affect the future social rights of every working person.

What is included in VSAOI

Mandatory social contributions are distributed across several areas of social insurance:

  • pension insurance;
  • sickness insurance;
  • maternity and parental insurance;
  • insurance for workplace accidents and occupational diseases;
  • unemployment insurance;
  • survivor insurance.

Part of the contributions is paid by the employer, and part is withheld from the employee’s gross salary.

How VSAOI are calculated

VSAOI are charged on the gross salary and calculated based on fixed rates set by the state.

The total rate consists of two parts:

  • employer contributions — the larger part;
  • employee contributions — withheld from salary.

Depending on the type of employment (employee, self-employed, author contract), VSAOI rates may vary.

How VSAOI affect social protection

The amount of paid VSAOI determines what social guarantees and at what level a person will be eligible for. Contributions affect:

  • the amount of the future pension;
  • the amount of sickness benefits;
  • maternity and childbirth benefits;
  • parental benefits;
  • unemployment benefits;
  • compensation for workplace accidents.

The higher the official salary and the longer the contribution period, the greater the social protection.

VSAOI calculation example

For example, an employee has a gross salary of 1400 EUR.

The applicable VSAOI rate is applied to this amount. Result:

  • a portion of the contributions is withheld from the employee’s salary,
  • the larger part is paid by the employer,
  • the remaining amount after VSAOI and IIN deductions = net salary.

VSAOI reduce the amount received "in hand" but ensure social protection.

Where VSAOI data is used

Information about paid VSAOI is used in important life situations:

  • when granting a pension;
  • when calculating sickness and other social benefits;
  • when determining eligibility for unemployment benefits;
  • in workplace accident insurance;
  • in creditworthiness assessment (income stability);
  • in labour market statistics.

How to check your VSAOI

You can check social contribution data:

  • in EDS (Electronic Declaration System);
  • in the VSAA online system;
  • via the portal Latvija.gov.lv.

How to calculate VSAOI automatically

To understand how VSAOI affect your salary, the easiest way is to use the salary calculator on this website.

It automatically takes into account:

  • VSAOI rates;
  • the non-taxable minimum;
  • dependents;
  • IIN rates;
  • social benefits.

The calculator instantly shows the VSAOI amount and the final net salary.