bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 24.01.2017 | Name days: Krišs, Eglons, Ksenija
LatviaLatvia

Average wage growth in Latvia remains slow

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn Q3 2016, the average monthly gross wages and salaries in the country amounted to EUR 847. Compared to Q3 2015, average wages and salaries have grown by EUR 18 or 2.2 %, indicating a lower annual increase than in the 2nd quarter of the present year (3.3 %).

Average monthly gross wages and salaries in the private sector accounted for EUR 828 and for EUR 885 in the public sector, while the average wages and salaries in the general government sector that includes state and local government institutions, State Social Insurance Agency and enterprises controlled and financed by the central and local governments amounted to 840 euros. Over the year, wages and salaries in the private sector grew at a faster pace than those in the public sector – 2.3 % and 1.9 %, respectively, according to the latest information from the Central Statistical Bureau of Latvia.

In Q3 2016, the average net wages and salaries in the country comprised EUR 622, having grown by 1.7 % in comparison to Q3 the previous year. As the consumer prices increased by 0.2 %, real net wages and salaries grew by 1.5 %.

In Q3 2016, the largest average wages and salaries were recorded in the sector of financial and insurance activities, information and communication, and energy. In turn, the lowest average wages and salaries were observed in the sector of accommodation and food service activities and other service activities, as well as in the education sector.

Compared to Q3 2015, average monthly gross wages and salaries grew in all sectors except for professional, scientific and technical activities (a drop of 2.2 %), real estate activities (a drop of 1.7 %), transportation and storage (a drop of 1.5 %) and other service activities (a drop of 1.2 %) in Q3 2016. The sector of other service activities includes the activities of public, political and other membership organisations, repair of personal and household goods, as well as washing and dry-cleaning services, hairdressing and other beauty treatment, funeral and related activities and other service activities.  There was also a slight drop in the average wages and salaries in the energy sector (of 0.1 %).

The drop in the average wages and salaries in the sectors of professional, scientific and technical activities, transportation and storage, and energy were affected by a reduction in the volume of irregular bonuses and premiums, as well as an increase in the number of employees, which was more rapid than the increase in the wage and salary fund. The other mentioned sectors witnessed a drop in regular wages and salaries, as well as irregular bonuses, while the number of employees grew.

Of all the sectors that witnessed an increase in wages and salaries over the year, the greatest growth was recorded in the sectors of accommodation and food service activities (of 5.5 %), financial and insurance activities (of 5.0 %), and in agriculture (of 4.7 %).

Compared to Q3 2015, in Q3 2016 wages and salaries have grown in all Baltic states, however, Latvia indicated the lowest increase. Over the year, the average gross wages and salaries in Estonia and Lithuania grew by 7.1 % and 7.9 %, respectively. The highest gross wages and salaries in Q3 2016 were recorded in Estonia (1,119 euros), while the lowest – in Lithuania (793 euros). Latvian employees receive the lowest wages and salaries after the payment of taxes – in Q3 the present year the average monthly net wages and salaries accounted for 73 % of the calculated gross wages and salaries. This respective ratio was 78 % in Lithuania and 81 % in Estonia.

Just as in Latvia, minimum wages have also increased in both neighbour states over the year. In Estonia the minimum wage increased from EUR 390 to EUR 430 starting with 1 January of the present year (an increase of 10.3 %), whereas in Lithuania it reached EUR 380 on 1 July of the present year (an increase of 26.7 % in comparison to the minimum wage of EUR 300 present on 1 January 2015). The minimum wage in Latvia increased from EUR 360 to EUR 370 on 1 January of the present year (by 2.8 %).

Ref: 102.109.109.6791


Leave a reply

Survey: 83% of residents are dissatisfied with government’s work

Residents expressed the biggest amount of disappointment with the government’s work, which received sharp criticisms last November. Previously, the government’s work assessment declined by seven points. Scepticism became only sharper in December, dropping by 11 points, according to data from Baltic International Bank’s Latvian Barometer.

EM: construction businessmen will have to submit data to registry once a year

On Tuesday, 24 January, Latvian Cabinet of Ministers approved amendments to rules that govern construction businesses registration. Those amendments provide for expansion of information submitted to Construction Information System to secure information accessibility...

New cargo transshipment record at Klaipeda port

Last year, Klaipeda port registered a new record cargo transshipment-wise, becoming the leader among Baltic States, according to data published by the port.

Kozlovskis: bombing threats in Latvia on a rise

Recent bombing threats have impacted the work of shopping centres and other businesses in Latvia, said Interior Affairs Minister Rihards Kozlovskis in an interview to 900 seconds programme of LNT.

Kenny to be proposed for post at RJA after learning Latvian language

The newly-elected rector of Riga Graduate School of Law Mel Kenny will be proposed for approval in the Cabinet of Ministers after he achieves the necessary Latvian language knowledge level appropriate for the post.

Economist: residents’ expectations will reduce real estate price rise

The value of SEB Housing Price Index, which is the difference between the number of people who predict apartment price rise and those who predict price decline, declined to 36.5 points at the end of 2016.

SES: approximately 2 m3 oil leak took place in Plavini HES

A 2 m3 oil leak from a written-off high power transformer has taken place in the territory of Plavini hydroelectric station. This leak has caused pollution and a threat to the environment, as reported by State Environmental Service representative Maruta Buklevica.

LPCS: average milk procurement price has grown provisionally

The average milk procurement price in Latvia grew in December by 7.6% in comparison with November. In comparison with December 2015, the price grew by 38.5%, according to provisional data from Central Union of Latvian milk manufacturers.

VIDEO: an «open» meeting of Ventspils University College Senate held behind closed doors

On 19 January 2017, a meeting of Ventspils University Senate was held. Without prior informing of society, this meeting was attended by infamous Ventspils resident Aivars Lembergs and 1st deputy chairman of Ventspils City Council for matters of infrastructure and the so-called curator of the education institution Janis Vitolins.

EM: a model is chosen to make gas trade process less complicated

A model has been chosen to make the gas trade process less complicated and more comprehensible for consumers. All interactions with customers will be performed by the trader – one contract, one receipt and one customer service, leaving technical matters to the transmission system’s operator, as BNN was informed by Economy Ministry.

Reirs: ME system is good, but only in relation to the people that need it

Estonia’s experience shows that there can be significantly larger minimal wages and significantly lower unemployment level than what is found in Latvia, Diena was told by Welfare Minister Janis Reirs.

LBLA: businesses in Latvia find it difficult to produce biological food

There is still a disproportion between production and processing volumes of biological agriculture products in Latvia. Companies produce more than they process. This is why it is important to develop processing, believes board member of Latvian Biological Agricultural Association and Aloja Starkelsen Janis Garancs.

PHOTO: women’s solidarity march in Riga

On Saturday, 21 January, voluntary women’s solidarity events under a single title – Sister march – were organized around the world. In Riga, the event gathered at least 200 people.

De facto: NA opposes businessmen’s efforts to change requirements for guest workers

Business organizations want the government to review requirements for attraction of guest workers, because it is nearly impossible to find workers in many fields. But the proposal’s viewing in the government has come to a halt because of arguments against it from the National Alliance, as reported by De Factor programme of LTV.

Kudors: Baltics should arm themselves with strategic patience

In relations with Russia, Baltics should arm themselves with strategic patience in the next several years, as stated in Latvia’s Foreign Policy Institute’s compilation on Latvia’s external and security policy.

Little precipitation is expected in Latvia this week; frost expected

On Monday, 23 January, weather in Latvia will be dictated by a small low atmospheric pressure area. With that, some precipitation is expected in many parts of Latvia: mostly rain and wet snow. Wind will draw in from the south-west and air temperature will stay within 0° C… +4° C, as reported by Environmental, Geology and Meteorology Centre.

Week in Lithuania. CIA declassifies document on Lithuania’s post-WWII guerrillas

A report about guerrilla fighting against the Soviet occupation after World War II is among hundreds of thousands of declassified documents published online by the United States Central Intelligence Agency.

People no longer believe in their own country, because they associate it with people who make decisions

The biggest threat to Latvia is the fact that society, including state officials, is afraid. People are afraid of change, afraid of voicing their thoughts (thoughts that often do not comply with the politically correct stance), afraid of being misunderstood. Fear makes it harder to develop. It limits people’s internal freedom. Such is the opinion Inga Antane, president of Baltic Association – Transport and Logistics and sworn attorney of Triniti law firm, explained in her interview to Atbalsts.

Expert: «Lithuania’s renewed National Security Strategy is a «hodgepodge»

This week, the Lithuanian Parliament has overwhelmingly approved a renewed National Security Strategy, laying out 14 major hazards and risk factors to national security.

Industry: advertisements contribute the entire economy of the European Union

Every euro invested in advertisement has seven times the influence on a country’s GDP. Every one euro brings seven euros in return to the country’s GDP, as emphasized by Latvian Advertising Association, noting that advertisement sector contributes to employment in all of the European Union.

Six deputies applied with administrative penalties in Saeima’s autumn session

According to information provided to the parliament, six deputies were applied with administrative penalties during Saeima’s autumn session.

Slower economic growth for Estonia forecast – at 2.2% - for 2017

The economic growth of Estonia in 2017 will be slower than previously expected, Swedbank economists have announced lowering their previous economic forecast for the Baltic country by 0.2% to 2.2%.

Latvian and Lithuanian authorities dismantle two criminal groups

Latvian State Revenue Service’s Finance Police has successfully apprehended two organized crime groups that caused significant damage to the state budget in 2015 and 2016 by realizing different VAT fraud schemes.

Estonia to drop special pensions, push forward sweeping pension reforms

The Estonian government has decided to drop special pensions and to push forward with plans regarding other significant changes in the pension system, including tying the retirement age to the average life expectancy.

KNAB performs inspection about Jakrins’ approval in the board of Rīgas satiksme

Corruption Prevention and Combating Bureau intends to inspect if the approval of acting head of Riga City Council’s Transport Department Emils Jakrins in the management board of Rīgas satiksme had any signs of breach of good management principles.