In Q2 2015 the average monthly gross wages and salaries in the country accounted for EUR 815. Compared to Q2 the previous year, they have increased by 6.9%, slightly overtaking annual increase rate of 6.3% in Q1 2015.
In private sector the average monthly wages and salaries amounted to EUR 792, in public sector – EUR 857, and in general government sector – EUR 795. In the private sector, wages and salaries rose by 7.8% annually, and in public sector – by 5.3%, according to information from the Central Statistical Bureau of Latvia.
Compared to Q2 the last year, in Q2 this year gross wages fund rose by 6.8% or EUR 114.0 million, the number of salaried employees in the country recalculated in normal (full-time) units decreased by 0.2 thousand.
In Q2 2015, the average monthly net wages and salaries accounted for EUR 600, and over the year they rose more rapidly than wages and salaries before taxes – by 7.5%. It can be explained with reduction of Personal Income Tax from 24% to 23% as of 1 January 2015. Since the beginning of this year also the minimum wage in the country has changed – from EUR 320 to EUR 360 (increase of 12.5%), which affected changes in the average wages and salaries.
In Q2 this year the real increase of annual net wages and salaries, considering rise of consumer prices of 0.8%, constituted 6.6%. For the third year running low level of inflation does not affect real wages significantly, and thus it had no significant effect on purchasing power of the working population, too.
In Q2 2015 the largest average wages and salaries were 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, trade as well as in real estate activities.
In Q2 this year, compared to Q2 2014, average gross wages rose in all sectors. The most rapid growth was recorded in information and communication services sector – of 9.7% annually, in real estate activities sector – of 9.3%, in accommodation and food services sector – of 9.0% and in trade – of 8.9%.
Over the year wages fund in real estate activities grew, while the number of employees recalculated in normal (full-time) units decreased. In turn, in the remaining above-mentioned sectors wages fund grew more rapidly than the number of employees.
Reduction in the number of full-time employees was also observed in manufacturing, construction, energy, water supply, sewerage, waste management and remediation activities, agriculture and mining.