The base monthly salary in Latvia has grown by an average of 4.4% in the past twelve months. The total annual salaries have grown 5.1%, according to results of an annual salary study performed by Fontes.
The study shows that the number of employers who provide at least one group of employees flexible work time, opportunity to work from home or additional paid holidays. This trend shows that the topic of maintaining a balance between work and private life is becoming more and more topical in Latvia.
«While in previous years we talked about the emerging trend of maintaining balance between work and private life, we can now safely say this trend is picking up in popularity,» – says Fontes board member Anta Pranevica.
The labour market is also influenced by the lack of workers – education and experience of workers does not fit the requirements of topical jobs on the market. This creates difficulties for employers to find appropriate workers, forcing them to look for new solutions for attraction of potential employees, their education and re-qualification.
The most topical jobs on the labour market Latvia are associated with IT. While in previous years employers put more emphasis on requirements for employees to receive higher wages, this year’s results of the study show that employers are prepared to create initiatives and invest money to keep their employees. As a result, the index for IT jobs is significantly higher in comparison with other jobs. This means the pay in the IT sector is often higher than what the job includes.
Aside from IT jobs, jobs in the construction sector are also topical. Demand is also high for high level marketing and sales specialists.
‘The study analysed data for 53,157 workers from 236 organizations. 46.5% of employees who perform similar duties as they did one year ago did not experience any change in their base salary. 52.4% of employees are paid more money for their job in comparison with the year before. The average increase in pay for them is 6.6%,’ – notes Pranevica.
Monthly or quarterly bonuses were paid to 57.7% of employed people in Latvia this year.
The rise of average wages in Riga was slightly faster in Riga than in other regions – 4.4% and 3.9% respectively. The average annual salary growth in Riga (4.9%) was higher than that of other regions (3.6%). The most rapid rise in monthly wages among regions was registered in Kurzeme (4.4%), followed by Latgale (3.0%). Zemgale’s monthly wage growth was 2.9% and that of Vidzeme was 2.6%. The most rapid annual wage rise was registered in Kurzeme and Latgale (5.2% and 4.7% respectively).
One major index in the analysis of wage rise is the fluctuation in the number of employees. Over the course of the past twelve months, the number of employed people in Latvia increased in 42% of organizations and dropped in 38% of organizations. 52% of organizations plan to keep their staff numbers unchanged in 2016, 38% plan to hire more staff and only 10% plan to lay off workers.