Latviski English По-русски
Friday 18.08.2017 | Name days: Liene, Helēna, Elena, Ellena, Liena

Average wage growth in Latvia could be slower this year

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn Q1 2016, average monthly gross wages and salaries in the country constituted EUR 827. As compared to Q1 2015, average wages and salaries grew by 5.3 %, moreover growth rate was lower than a year ago.

Average gross wages and salaries in private sector accounted for EUR 820, in public sector – for EUR 842, while in general government sector, that includes central and local government institutions, the State Social Insurance Agency, as well as corporations controlled and financed by the central and local governments– for EUR 788. During the year, wages and salaries in private sector rose by 6.0 % and in public sector – by 4.1 %, according to data from the Central Statistical Bureau of Latvia.

In Q1 2016, average net wages and salaries constituted EUR 610, rising by 5.2 % during the year. Decline in the consumer prices of 0.4 % during the year increased purchasing power of employed population, leading to 5.6 % rise in real net wages and salaries.

As compared to the corresponding period of 2015, in Q1 2016 fund of gross wages and salaries increased by 6.1 % or EUR 104.0 million, whereas number of salaried workers (at full-time equivalent) grew only by 0.8 % or 5.5 thousand.

Rise of minimum wage from EUR 360 to EUR 370 or 2.8 % since 1 January 2016 did not have major effect on the average wage changes.

In Q1 2016, just like in the previous year, the highest average wages and salaries were recorded in financial and insurance activities, information and communication sector, energy sector.  While the lowest average wages and salaries were observed in accommodation and food service activities, other service activities, education, arts, entertainment and recreation, trade, as well as administrative and support service activities.

As compared to Q1 2015, in Q1 2016 average gross wages and salaries grew in all economic activities. During the year, more notable wage and salary increase was recorded in other service activities – of 9.2 %, agriculture, forestry and fishing – of 8.4 %, real estate activities – of 8.2 %, water supply; sewerage, waste management, and remediation activities, as well as mining and quarrying – of 7.7 %, and accommodation and food service activities – of 7.4 %.

Wage and salary rise in real estate activities and mining and quarrying was influenced by increase in wage and salary fund and drop in the number of full-time employees, while in other activities rise was recorded in both number of employees and wage and salary fund.

During the year, lower rise was observed in sectors with the highest wages and salaries in the country – financial and insurance activities, as well as information and communication sector.

As compared to Q1 the previous year, wages and salaries have risen in all Baltic States, however the lowest increase was recorded in Latvia. During the year, average gross wages and salaries in Estonia grew by 8.1 % and in Lithuania – by 6.9 %. In Q1 2016, the highest average monthly gross wages and salaries were observed in Estonia (1 091 euros), while the lowest – in Lithuania (748 euros). Minimum wage also in the other two neighbouring countries, just like in Latvia, increased since the January 1: in Lithuania from EUR 300 to EUR 350 (rise of 16.7 %) and in Estonia from EUR 390 to EUR 430 (of 10.3 %).


Leave a reply

Weather in Latvia to be warm but rainy on weekends

The sun will appear every now and then between clouds on Friday, 18 August. Still, some rain is expected, especially in the afternoon in Latvia’s eastern regions, where thunderstorms may appear. Rain is expected to reach the capital in the afternoon. Wind will draw in from the south. Air temperature will reach +21° C… +26° C, according to State Environment, Geology and Meteorology Centre.

Latvia’s export growth was moderately rapid in the first six months of 2017

Compared with the same period of 2016, Latvia experienced a moderately rapid export growth in the first six months of 2017, according to data published by Eurostat on Thursday, 17 August.

Latvia’s annual inflation in July was one of the highest in Europe

Inflation indexes in Latvia and the UK both reached 2.6% in July, which is one of the highest indexes in the European Union, according to data published by Eurostat on Thursday, 17 August.

Kirsis withdraws his candidacy in favour of Aseradens

Riga City Council member Vilnis Kirsis has decided to withdraw his candidacy from the race to become chairman of Unity in favour of a different candidate – Economy Minister Arvils Aseradens.

Rinkevics expresses Latvia’s interest in maintaining political consultations with Palestine

On Thursday, 17 August, Latvia’s Foreign Affairs Minister Edgars Rinkevics met with the leader of Palestine’s diplomatic mission in Latvia, ambassador Taissir Al Adjouri, to discuss mutual relations between Latvia and Palestine and the peace process in the Middle East.

Putin grins to the world’s seven billionth baby, Lithuania wary of border incidents

Russian President Vladimir Putin paid a visit this Wednesday to Kaliningrad, the westernmost point of Russia, but the reports about his trip in the Russian enclave and over the border in Lithuania were strikingly different.

Survey: red considered the safest colour for a car

Most Latvian drivers consider red to be the safest colour for a car. The most popular, however, is black, according to results of a survey by Virši-A fuel trader.

airBaltic’s number of carried passengers reaches a record in second consecutive month

Latvian airBaltic airline carried 393,312 passengers in July 2017, which is 21% more than the same period last year. The number of passengers carried by airBaltic remains the highest it has ever been in the airline’s history, BNN was informed by the company.

Brivais vilnis: nearly all fish processing companies are experiencing losses

Currently nearly all fish processing companies in Latvia are experiencing major or minor losses, says Brivais vilnis chairman Arnols Babris.

American helicopters to perform low-altitude flights within Latvia’s airspace

U.S. Air Force Brigade’s Task Force Phoenix helicopters, which are stationed in Latvia as part of Atlantic Resolve operation, will be performing low-altitude flights from 16:00 to 18:00 from Lielvarde to Dobele on Friday, 18 August.

Healthcare Ministry’s state secretary Karlis Ketners may be replaced

Latvian Healthcare Ministry may replace its state secretary Karlis Ketners. It is possible he will be transferred to work at Finance Ministry, as reported by LTV.

Suspects in Europe's insecticide egg scandal before Dutch court

In the Netherlands, two men have been in court in relation to the scandal of eggs containing banned insecticide that has caused an EU-wide health scare and cost millions of euros of damages.

Indian national with fake documents apprehended on Latvian border

An Indian citizen travelling from Moscow on a bus was caught at Terehovo border control point in Latvia for presenting officers a fake EU family member’s resident card. No criminal process was launched. The person returned to the country he was travelling from.

Latvijas dzelzceļš will not have to pay dividends from last year’s profits

The government decided on Wednesday, 16 August, that Latvijas dzelzceļš will not have to pay dividends from last year’s profits, which were EUR 880,998.

Latvian citizenship provided to 103 people

The Cabinet of Ministers has issued an order to provide Latvian citizenship to 103 people through naturalization.

Estonian Inbank's profits reach EUR 5.7 million in six months

Estonian financial services' provided Inbank made a profit of 5.7 million euros in the first half of 2017, which is a 429.4% increase compared to the respective period in 2016.

Agriculture Ministry invites residents to sign up for measures to support fisheries

From 21 August onward, Rural Support Service plans to start accepting applications for projects to receive support from European Maritime and Fisheries Fund’s action plan for development of fisheries in 2014-2020 as part of projects Innovation, Productive Investments in Aquaculture and Fishing and Aquaculture project processing.

Estonia seeks to improve reputation of state as employer

As the Estonian Ministry of Finance wishes to boost the reputation and brand of the Baltic country's public sector, it has announced a procurement tender aimed at preparing an action plan for reaching these goals.

Warning: there may be short-term problems with Swedbank internet banking functionality

Because of Swedbank’s planned IT modernization work scheduled for the night to Thursday, 17 August, there may be short term problems with payment card and internet banking functionality, the bank warns.

Aseradens: neither Usakovs nor Lembergs should be allowed to become prime minister

If he became chairman of Unity, Economy Minister Arvils Aseradens would mobilize democratic forces to prevent the possibility of either Aivars Lembergs or Nils Usakovs becoming prime ministers, Aseradens said in an interview to 900 seconds programme of LNT.

Caksa believes increasing wages for doctors would improve politicians’ credibility

The planned wage increase in healthcare could be the first step towards improving politicians’ credibility, says Healthcare Minister Anda Caksa.

Bill Gates donates USD 4.6 billion, reduces shares in Microsoft

The co-founder of the U.S. computer software firm Microsoft, Bill Gates, has allocated to charity 4.6 billion U.S. dollars (3.9 billion euros), which is the philanthropist's highest donation since the year 2000.

LOSP proposes using electronic packing slip system to reduce fraud

An electronic packing slip system for goods would be invaluable for agricultural goods, because it would help push out and reduce VAT fraud, says Latvian Agricultural Organisation Cooperation Council.

Latvia and Russia agree on exchange of additional 3,000 universal permits for cargoes

Latvia and Russia will exchange 7,000 universal permits for international cargo transports in 2017. This will be the largest universal permit volume in the past 15 years, as reported by Road Directorate.

Sierra Leone hit by tragic mudslide

A tragic mudslide has taken place in Sierra Leone, where flooding in the capital Freetown caused a mudslide, in which nearly 400 people have been have died.