Analytics, Baltic, Financial Services, Latvia, Markets and Companies, Wages

Average gross wages and salaries in private sector accounted for 820 euros, in public sector – for 842 euros, while in general government sector, that includes central and local government institutions, the State Social Insurance Agency, as well as corporations controlled and financed by the central and local governments – for 788 euros. During the year, wages and salaries in private sector rose by 6.0% and in public sector – by 4.1%.

In the 1st quarter of 2016, average net wages and salaries constituted 610 euros, rising by 5.2% during the year. Decline in the consumer prices of 0.4% during the year increased purchasing power of employed population, leading to 5.6% rise in real net wages and salaries.

Changes in average monthly wages and salaries by sector, euros

As compared to the corresponding period of 2015, in the 1st quarter of 2016 fund of gross wages and salaries increased by 6.1% or 104.0 million euros, whereas number of salaried workers (at full-time equivalent) grew only by 0.8% or 5.5 thousand.

Rise of minimum wage from 360 to 370 euros or 2.8% since the 1 January 2016 did not have major effect on the average wage changes.

In the 1st quarter of 2016, just like in the previous year, the highest average wages and salaries were recorded in financial and insurance activities, information and communication sector, energy sector.  While the lowest average wages and salaries were observed in accommodation and food service activities, other service activities, education, arts, entertainment and recreation, trade, as well as administrative and support service activities.

As compared to the 1st quarter of 2015, in the 1st quarter of 2016 average gross wages and salaries grew in all economic activities. During the year, more notable wage and salary increase was recorded in other service activities – of 9.2%, agriculture, forestry and fishing – of 8.4%, real estate activities – of 8.2%, water supply; sewerage, waste management, and remediation activities, as well as mining and quarrying – of 7.7%, and accommodation and food service activities – of 7.4%.

Wage and salary rise in real estate activities and mining and quarrying was influenced by increase in wage and salary fund and drop in the number of full-time employees, while in other activities rise was recorded in both number of employees and wage and salary fund.

During the year, lower rise was observed in sectors with the highest wages and salaries in the country – financial and insurance activities, as well as information and communication sector. While slightly lower rise was recorded in education and professional, scientific and technical activities.

Average monthly gross wages and salaries in the 1st quarter of 2015 and 2016 and changes thereof

As compared to the 1st quarter of the previous year, wages and salaries have risen in all Baltic States, however the lowest increase was recorded in Latvia. During the year, average gross wages and salaries in Estonia grew by 8.1% and in Lithuania – by 6.9%. In the 1st quarter of 2016, the highest average monthly gross wages and salaries were observed in Estonia (1 091 euros), while the lowest – in Lithuania (748 euros). Minimum wage also in the other two neighbouring countries, just like in Latvia, increased since the January 1: in Lithuania from 300 to 350 euros (rise of 16.7%) and in Estonia from 390 to 430 euros (of 10.3%).

Changes in average gross monthly wages and salaries in the Baltic States, euros (% over the corresponding period of the previous year)

More information on wages and salaries in Latvia is available in the CSB website section Wages and Salaries – Key Indicators. Data on wages and salaries in 2015 and 1st quarter of 2016 are published in the database section Wages and Salaries (Short term statistical data and Annual statistical data).

Methodological explanations

Data source used to acquire information on wages and salaries is a sample survey of individual merchants, commercial companies, State and local government institutions, foundations, associations and funds as well as administrative data sources.

Public sector in the CSB wage and salary estimates covers central and local government institutions and commercial companies, commercial companies with central or local government capital participation 50% and over, except foundations, associations and funds, and commercial companies thereof.

According to the European System of Accounts, the general government sector includes central and local government institutions, the social security fund, enterprises controlled and financed by the central and local governments.

Changes in average monthly wages and salaries are calculated as rounded values, i.e., not considering the value in eurocents.

When calculating average monthly wages and salaries, the number of salaried employees is re-calculated into full-time units, thus eliminating the differences in salaries paid for various workloads.