In Q3 2015 the average monthly gross wages and salaries in the country accounted for 829 euros. As compared to Q3 2014 they increased by 7.3%, which is a more rapid growth than in the 1st quarter (6.2%) and second quarter (6.4%).
In private sector there was a greater increase (of 8.3% over the year); in public sector the growth was 5.4%. In private sector the average monthly wages and salaries amounted to 811 euros, in public sector – 863 euros, and in general government sector – 815 euros, according to the latest information from the Central Statistical Bureau of Latvia.
Compared to the corresponding period of 2014, in Q3 2015 gross wages fund rose by 8.0% or 136.8 million euros, the number of salaried employees in the country recalculated in full-time units increased by only 0.7% or five thousand.
In Q3 2015 the average monthly net wages and salaries accounted for 611 euros, and over the year they rose more rapidly than wages and salaries before taxes – by 8.2%. It can be explained with the 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 320 euros to 360 euros (increase of 12.5%), which affected changes in the average wages and salaries.
In Q3 this year the real increase of net wages and salaries, taking into account the decrease of consumer prices of 0.1%, over the year was 8.3%, thereby increasing purchasing power of the working population.
In Q3 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 sector, trade as well as in administrative and support service activities.
In Q3 2015, as compared to Q3 2014, the average gross wages and salaries rose in all sectors. Over the year the most rapid growth was recorded in sectors with labour remuneration below the average level in the country: in accommodation and food services sector – of 10.6%, in real estate activities – of 10.5%, in construction, arts, entertainment and recreation sector – of 9.3%, in trade – of 9.0%, and in manufacturing – of 8.8%. In accommodation, food, trade, as well as in art, entertainment and recreation sector wages fund grew more rapidly than the number of employees. In the remaining above-mentioned sectors over a year the wages fund witnessed growth, while the number of full time employees decreased.
Among the Baltic States the highest average gross wages and salaries in Q3 2015 were registered in Estonia (1045 euros), while the lowest – in Lithuania (735 euros). As compared to Q3 the previous year, growth in wages and salaries was similar in Latvia and Estonia – 7.3% and 6.9%, respectively; in Lithuania wages and salaries grew by 5.5%.
Employees in Latvia still receive the lowest net wages and salaries – the average monthly net wages and salaries in Q3 this year accounted for 74% of the calculated gross wages and salaries. In Lithuania this ratio was 77%, and in Estonia – 81%.