Graduations celebrated, time for work: A guide to student employment during summer break

Although the first month of summer is already coming to an end, the biggest influx of students into the labor market is expected right now. Graduates of grades 9 and 12 have just passed their exams, celebrated their graduations, and are ready to take their first steps in a professional environment.

Employing students during the summer is an excellent opportunity for businesses to secure extra hands for seasonal work, while young people gain their first practical experience. However, for the cooperation to be successful and legal, employers, parents, and the youth themselves must be aware of specific Labor Law and tax regulations.

1. At what age can one start working, and what are the restrictions?

In Latvian regulatory framework, there is a strict distinction between two concept groups: children (up to 15 years of age) and adolescents (from 15 to 18 years of age). As stipulated by Section 37 of the Labor Law, different conditions apply to the employment of these two groups. Meanwhile, Section 132 of the Labor Law regulates the exact working hours and limitations for children and adolescents.

Children aged 13 to 15:

• Right to work: Only from the age of 13, upon receiving the written consent of one parent (or legal guardian);
• Type of work: May only perform light work that is not harmful to their health, safety, and development (e.g., weeding, berry picking, landscaping, stocking shelves at retail locations);
• Working hours during break: In accordance with Section 132 of the Labor Law – no longer than 4 hours per day and 20 hours per week.

Adolescents aged 15 to 18:

• Right to work: May enter into an employment contract independently; however, until reaching the age of 18, a mandatory medical examination is required before starting work;
• Type of work: Must not be employed in jobs associated with increased risk to safety, morality, or health;
• Working hours during break: In accordance with Section 132 of the Labor Law – no longer than 7 hours per day and 35 hours per week.

⚠️ Important for both groups: It is prohibited to employ individuals under the age of 18 during the night (for adolescents, the prohibition is from 22:00 to 6:00) and for overtime work.

2. What does employing a student mean for an employer?

Companies can choose to employ students on their own or utilize state support mechanisms.

One of the most popular tools is the State Employment Agency (NVA) program "Student Summer Employment," designed for young people aged 15 to 20. Under this program, employers receive state co-financing (a grant) for the student's salary and the supervisor's remuneration. Current information regarding applications and vacant positions can be found on the official NVA website.

Regardless of whether you work through the NVA or sign a standard employment contract, it must be remembered that for full-time hours worked per month, a student is entitled to a salary that is not less than the national minimum wage. Furthermore, upon termination of employment, compensation for unused vacation days must be paid.

3. Tax matters: What should parents and students know?

When starting employment, it is crucial to sort out tax matters in a timely manner within the State Revenue Service (VID) Electronic Declaration System (EDS). Incorrectly specified data can affect both the net amount received by the student and the parents' tax allowances.

Key tax aspects:

• Salary tax booklet: Before starting work, the student must mark the employer as their primary place of income in their VID EDS profile. This allows the non-taxable minimum to be applied to the salary, resulting in a higher net payout.
• Dependent tax allowance: If the child (up to 19 years of age) works only during the summer break (from June 1 to August 31) and continues their studies in the autumn, parents do not need to remove the child from their dependents. The parent fully retains the tax allowance for a dependent person.
• Social contributions: If the student is under 15 years old, mandatory state social insurance contributions (VSAOI) are not made at all. From the age of 15, contributions are made according to the general procedure.

To access detailed tables and calculation examples of how much a student will receive "in hand" (net) under different tax regimes, we invite you to review VID's useful information on employment during summer break (available only in Latvian).

Summary

Summer work is a mutually beneficial arrangement: the company gains a motivated employee, while the young person acquires valuable skills and their first capital. The ultimate key to success is transparency, clearly defined responsibilities in the employment contract, and providing a safe working environment.

Wishing a successful and productive summer work season to both young specialists and employers!