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Payroll Calculator

Calculate net pay, deductions and employer costs. Supports Latvia & configurable rates.

About the Payroll Calculator

Converting a gross salary into what an employee actually takes home — and what it actually costs the employer once social contributions are added — involves several moving pieces: income tax, employee social security, and separately, employer social security contributions on top. This calculator breaks all of that down clearly using Latvia's current rate structure, or your own custom rates if you're calculating for a different country.

The result includes both a payslip-style breakdown for the employee and a summary of the total cost to the employer, which is often significantly higher than the gross salary alone.

How to use it

  1. Select a rate profile (Latvia, or Custom for your own rates)
  2. Enter the gross monthly salary
  3. If using custom rates, fill in your income tax, employee, and employer social security percentages
  4. Review the net pay breakdown and total employer cost

Frequently Asked Questions

Why is the employer's total cost higher than the gross salary?

Because employer-side social security contributions are paid on top of the gross salary, not deducted from it. In Latvia, for example, the employer pays an additional 23.59% on top of gross salary.

Are these figures exact for tax filing purposes?

This is an estimate based on standard rates. Actual take-home pay can vary due to personal tax allowances, benefits, and other individual circumstances — always confirm with an accountant or payroll professional for official calculations.

Can I use this for countries other than Latvia?

Yes — select "Custom Rates" and enter the income tax and social security percentages that apply in your country.