Analytics, Estonia, Financial Services, Markets and Companies, Wages

The year-over-year growth of average monthly gross wages and salaries was 7.3% in the 1st quarter of 2014, but in the recent quarters the growth has been slower.

Compared to the 1st quarter of 2014, irregular bonuses and premiums decreased by 15.6% per employee in the 1st quarter of 2015 and reduced the growth of average monthly gross wages and salaries by 0.8 percentage points. Without irregular bonuses and premiums, the average monthly gross wages and salaries increased 5.3% in the 1st quarter of 2015.

The average monthly net wages and salaries (remuneration paid to employees) were 815 euros in the 1st quarter of 2015, meaning that they have grown faster than the average monthly gross wages and salaries (5.9% growth), compared to the same period of the previous year. This is due to the decline in the income and unemployment insurance tax rates starting from 1 January 2015. 

Real wages, which take into account the influence of the change in the consumer price index, increased 5.4% in the 1st quarter of 2015 compared to the 1st quarter of 2014. The acceleration of the growth of real wages was influenced by the continued decrease in consumer prices in the 1st quarter of 2015. Compared to the same quarter of the previous year, real wages increased for the fifteenth quarter in succession.

The average hourly gross wages and salaries were 6.37 euros and increased 5.8% compared to the 1st quarter of 2014.

Compared to the same quarter of the previous year, the average monthly and hourly gross wages and salaries grew the most in real estate activities (by 14.4% and 15.0%, respectively). The average monthly gross wages and salaries did not increase in six economic activities: 1) mining and quarrying; 2) electricity, gas, steam and air conditioning supply; 3) construction; 4) transportation and storage; 5) professional, scientific and technical activities; and 6) administrative and support service activities.

The average monthly gross wages and salaries were 992 euros in January, 984 euros in February and 1,053 euros in March.

According to the Wages and Salaries Statistics Survey, the average number of employees recalculated in full-time units was 1.5% greater in the 1st quarter of 2015 than in the 1st quarter of 2014. The biggest increase in the number of employees occurred in financial and insurance activities (10.6%).

In the 1st quarter of 2015, the average monthly labour costs per employee were 1,361 euros and the hourly labour costs were 9.01 euros. Compared to the 1st quarter of 2014, the average monthly labour costs per employee increased by 4.3% and the average hourly labour costs by 5.3%. The largest increase in monthly and hourly labour costs occurred in real estate activities (by 13.8% and 13.7%, respectively).

Statistics Estonia conducts the Wages and Salaries Statistics Survey on the basis of an international methodology since 1992. In 2015, the sample includes 12,074 enterprises, institutions and organisations. The average monthly gross wages and salaries have been given in full time units to enable a comparison of different wages and salaries, irrespective of the length of working time. Calculations of the monthly gross wages and salaries are based on payments for actually worked time and remuneration for time not worked. The hourly gross wages and salaries do not include remuneration for time not worked (holiday leave pay, benefits, etc.). In short-term statistics, the average gross wages and salaries are measured as a component of labour costs. Labour costs include gross wages and salaries, employer’s contributions and employer’s imputed social contributions to employees.

Average monthly gross wages and salaries and their change compared to the same quarter of the previous year, 1st quarter 2010 – 1st quarter 2015