Analytics, Financial Services, Markets and Companies, Wages

In public sector during this period wages and salaries grew by 6.4% (from LVL 446 to 474), but in private sector – by 0.6% (from LVL 421* to 423).

Average monthly gross wages and salaries by sectors (LVL)

The increase in public sector was caused by the irregular benefits paid in the state and local government businesses, as well as by the growth of the wage and salary level in local governments and institutions under their supervision.Rise of wages and salaries in local government sector, mainly, was caused by the growth of wages and salaries in education sector – by 11.0%, as well as in public administration – by 4.6%.

Compared to the 1^st quarter, average gross wages and salaries in the 2^nd quarter of this year in country totally witnessed the most notable rise in electricity, gas, steam and air conditioning supply – 10.9%, in education – 9.8%, in transport and storage – 5.1%, in water supply; sewerage, waste management, and remediation activities – 4.9%, as well as in human health and social work activities – 4.7%.

Average monthly gross wages and salaries by kind of economic activity

Compared to the 2^nd quarter of 2009, average gross wages and salaries in country in the 2^nd quarter of this year decreased by 6.3% (from LVL 474 to 444). Net wages and salaries during this time period reduced more rapidly – by 11.0% (from LVL 355 to LVL 316), and it may be explained with the fact that starting from January 1, 2010 population income tax rate grew from 23% to 26%, as well as on July 1, 2009 amount of monthly basic allowance reduced from LVL 90 to LVL 35.

Compared to the 2^nd quarter of previous year, monthly average gross wages and salaries in public sector in the 2^nd quarter of this year diminished by 11.5% (from LVL 536 to 474), of which in general government sector – by 14.3% (from LVL 509 to 436). In private sector they reduced by 2.7% (from LVL 435 to 423).

Number of employees, recalculated at full time units used to calculate monthly average wages and salaries, in the 2^nd quarter of this year, if compared to the 1^st quarter, has increased by 8.6 thousand or by 1.4%, but fund of wages and salaries – by LVL 34.9 million or by 4.3%. During the year number of employees has diminished by 99.2 thousand or by 13.6%, but fund of wages and salaries – by LVL 197.8 million or by 19.0%.

More information on wages and salaries in Latvia is available in CSB data base.

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Explanations

Public sector is central and local government commercial companies, as well as companies with central or local government capital participation 50% and over, foundations, associations and funds, and their commercial companies. Data on foundations, associations and funds and their commercial activities are not included in information.

According to the European System of Accounts (ESA 95) the general government sector includes central and local government budgetary institutions, the social security fund and enterprises controlled and financed by central and local governments.

* Data are revised.