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

In the 2^nd quarter of 2014 average monthly gross wages and salaries in Latvia, compared to the 2^nd quarter of 2013, increased by 6.4% from 716 euros to 762 euros. In its turn in the 1^stquarter of this year annual increase of the remuneration was 7.5%* (from 689 to 740 euros).

In private sector wages and salaries rose slightly faster – by 7.2% annually, but in public sector – by 5.3%. In the 2^nd quarter of 2014 average gross wages and salaries in private sectorcomprised 736 euros, but in public – 810 euros. In general government sector wages and salaries grew by 5.7% from 698 euros to 738 euros.

The average number of salaried employees in the country recalculated at full-time units, which is applied for calculation of average wages and salaries, in the 2^nd quarter of this year compared to the 2^nd quarter of 2013 rose only by 0.9% or 6.6 thsd, while gross wages fund grew by 7.4%.  

Changes in average monthly gross wages and salaries by sector (euros)

In the 2^nd quarter of 2014 average monthly net wages and salaries comprised 557 euros, and over a year they rose more rapidly than wages and salaries before taxes – by 8.4%. It can be explained with the decrease of employee social security contribution rate from 11.0% to 10.5%, as well as with the increase of non-taxable amount of personal income tax (non-taxable minimum and deduction for dependents) from January 1 of this year.

In the 2^nd quarter of 2014 the real increase of annual net wages and salaries, considering rise of consumer prices of 0.7%, constituted 7.6%.

Compared to the 1^st quarter of this year, gross wages and salaries grew by 2.9%, in private sector – by 1.6%, but in public – by 5.2%.

Average monthly gross wages and salaries by sector (euros)

Data source: Central Statistical Bureau of Latvia

Still the highest level of average wages and salaries was in financial and insurance activities sector, information and communication services, energy sector and public administration. But the lowest average wages and salaries were observed in accommodation, food and other service activities sectors, education, art, entertainment and recreation sectors and trade.

In the 2^nd quarter of 2014, compared to the same period of the previous year, average gross wages and salaries rose more rapidly in real estate activities sector – by 11.0%, in financial and insurance activities sector – by 9.8%, in accommodation and food service activities sector – by 9.7%, in administrative and support service activities sector – by 9.5%, as well as in mining and quarrying – by 9.0%.

In real estate activities sector wage and salary fund grew more rapidly – by 11.2%, while the number of employees recalculated at full-time units increased slightly –  by less than one%. In its turn, already since the economic crisis, financial and insurance sector is experiencing gradual reduction of the number of employees, while changes of wage and salary fund maintained positive trend. Over a year the largest decrease in the number of full-time salaried employees was also observed in manufacturing, education and other service activities sectors.

Changes in average monthly gross wages and salaries

Data source: Central Statistical Bureau of Latvia

More information on wages and salaries in Latvia is available in the CSB database.

Explanations

Data source: sample survey of individual merchants, commercial companies, State and local government institutions, foundations, associations and funds as well as administrative data sources.

Public sector is central and local government institutions and their commercial companies, companies with central or local government capital participation 50% and over, as well as foundations, associations, 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 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 of average monthly wages and salaries are calculated as rounded values, i.e., considering the value in cents/santims.

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.

* Data are revised.