Purchasing power of employees in Estonia and Latvia grew last year as the increase in wages exceeded the inflation rate. But real income of Lithuanian employees kept decreasing already the third year in turn, according to the latest SEB Baltic household finance report.

Despite the increase in gross wage, the high inflation had a considerable impact on real wage. Compared to 2010, real wage in Latvia grew 0.1% year-on-year showing increase by 0.6% in the last quarter of 2011. But in Estonia real wage grew by 2.1% in the last quarter of 2011 demonstrating growth already the second quarter in turn and thus terminating the 11-quarter-long decrease in Estonian real wages.

But in Lithuania the real wage of employees kept decreasing already the twelfth quarter in turn – comparing the last quarter of 2011 to the same period in 2010, wages shrunk by 1.5%.

«In last two years the highest increase in wages among all Baltic states was in Estonia – in the last quarter of 2011, compared to the same period in 2010, gross wage in Estonia grew by 6.3%, in Latvia – 4.5%, and in Lithuania – 2.5%. The average gross wage in Estonia is by 28% higher than in Latvia and by 37% higher than in Lithuania. The average gross wage in Latvia is by 7% higher than in Lithuania, however due to the high tax burden the net income in Latvia is still the lowest among the Baltic states. In the last quarter of 2011, the average monthly wage in Lithuania reached 489 euro, but in Latvia – 481 euro,» said SEB Bank socio-economy expert Edmunds Rudzitis.

In the last quarter of 2011 the average gross wage in Latvia was 676 euro, in Lithuania – 630 euro, but in Estonia – 865 euro.

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