As of 1 July 2021, a minimum NSIC object of a minimal wage (for FY2021 - EUR 500) has been introduced. In case an individual earns less from all NSIC taxable income sources, the employer is responsible for making the contributions on employees’ behalf.

Individuals employed by multiple employers or Individuals who are both self-employed and employees must sum their total income to determine whether the income is within the minimum amount.

Since January 2014, income attracting NSIC has been capped. For FY2022 the cap is EUR 78,100. Annual income above EUR 78,100 is subject to another tax - Solidarity Tax (ST). ST must be paid in the same amount each month as the NSIC, applying the same tax rates. ST is returned to the employer's account every year (September of each following year), when the difference between the annual ST rate withheld by the employer and the total annual ST rate (34.09% and 25%) is returned to the account.

2021 brought a decrease in the contribution rates of NSIC. The contribution rates are summarised in this table.

NSIC should be reported and paid quarterly in the case of self-employed persons, whereas monthly contributions are required to be withheld, reported, and paid by Latvian employers.

 An additional 5% NSIC should be contributed by self-employed individuals and payers of royalties:

• The self-employed should contribute an additional 5% NSIC on the difference between their actual monthly income and NSI income (i.e. the excess).
•  A 5% NSIC is payable in addition by a payer of royalty to Latvian-resident individuals (living in Latvia).