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

In the private sector wages and salaries rose faster – by 8.5% annually, but in the public sector – by 5.6%. In the 3rd quarter of 2014 the average gross wages and salaries in the private sector amounted to EUR 753, and in the public sector – EUR 819. In the general government sector wages and salaries grew by 6.8% from EUR 715 to EUR 763.

The average number of salaried employees in the country recalculated at full-time units, which is applied for the calculation of the average wages and salaries, in the 3rd quarter of this year compared to the 3rd quarter of 2013 did not change, while gross wage and salary fund grew by 7.4%.  

Changes in the average monthly gross wages and salaries by sector, EUR

In the 3^rd quarter of 2014 the average monthly net wages and salaries accounted for EUR 566, and over the year they rose more rapidly than wages and salaries before taxes – by 8.7%. 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 1 January 2014.

In the 3^rd quarter of 2014 the real increase of annual net wages and salaries, taking into account the rise of consumer prices of 0.8%, was 7.8%.

Compared to the 2^nd quarter of this year, gross wages and salaries grew by 1.7% (in the private sector by 2.4%, and in the public sector by 0.6%).

Compared to the corresponding period of the previous year in the 3^rd quarter of 2014 the average gross wages and salaries grew most rapidly in professional, scientific and technical activities – by 10.9%, in construction sector – by 10.7%, in administrative and support service activities sector – by 10.6%, in real estate activities – by 10.4%, and in agriculture, forestry and fishing – by 10.0%.

Over the year wage and salary fund in professional, scientific and technical activities, in construction, and real estate activities showed an increase, while the number of employees recalculated at full-time units decreased. In turn, in agriculture, forestry and fishing, as well as in administrative and support service activities sector the fund grew more rapidly than the number of employees.

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

Changes in the average monthly gross wages and salaries

Data source: Central Statistical Bureau of Latvia

The compiled statistical information about the Baltic States shows that in the 3^rd quarter of 2014 the largest monthly gross wages and salaries were registered in Estonia – EUR 977, but the lowest in Lithuania – EUR 697. Over the year the most rapid growth in the average gross wages and salaries was observed in Latvia (7.4%), followed by Estonia (5.0%), and Lithuania (4.3%).

Among the Baltic States the labour taxes are still the highest in Latvia. Net wages and salaries in Latvia account for 73% of the average gross wages and salaries, while in Lithuania for 78%, and in Estonia – 80%.

Average gross monthly wages and salaries in the Baltic States, EUR

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.

The public sector includes 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 the average monthly wages and salaries are calculated as rounded values, i.e., taking into account the value in cents.