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Ceturtdiena 09.04.2020 | Name days: Valērija, Žubīte

Average wage in Latvia before taxes last year – EUR 1 076

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CSP, statistics, average wages, LatviaIn 2019, the average gross wages and salaries for full-time work in Latvia comprised EUR 1 076. Compared to 2018, the average earnings rose by EUR 72 or 7.2 %.

Average net wages and salaries (calculated based on labour taxes applicable on workplace) comprised EUR 793 or 73.7 % of gross earnings. Over the year, net wages and salaries had increased by 6.8 %, showing 0.4 percentage points lower rise than that of wages and salaries before taxes, according to data compiled by the Central Statistical Bureau of Latvia.

Considering the consumer price growth of 2.8 % in 2019, the real increase of the wages and salaries comprised 3.9 %.

In 2019, median gross wages and salaries amounted to EUR 832, and, compared to EUR 774 in 2018, they grew faster than the mean arithmetic earnings (rise of 7.5 %). In 2019, net median wages (after taxes) constituted EUR 613 and rose by 7.1 % over the year.

Median is calculated based on the information available in statistical surveys and administrative data of the State Revenue Service.

Median is an average indicator located in the middle of employee earnings sorted in an ascending or descending order. As median, compared to the mean arithmetic earnings, is not influenced by extremely high or low wages and salaries, it reflects typical earnings more precisely.

Changes in the average wages and salaries are influenced not only by the rise or decline in employee remuneration, but also structural changes of the labour market – enterprises that had started and stopped their business during the year, changes in the number of employees and workloads. The effects caused by the mentioned factors in general may be seen in the changes in the wage and salary fund and number of full-time employees, which are used in the average wage calculations.

In 2019, compared to 2018, gross wage and salary fund increased by 8.0 % or EUR 724.7 million, whereas the number of salaried workers, recalculated into full-time units, grew by 0.7 % or 5.3 thousand.

In 2019, the average gross wages and salaries in private sector constituted EUR 1 067, in public sector EUR 1 103, while in general government sector, which includes central and local government institutions, as well as enterprises controlled and financed by the central and local government, it amounted to EUR 1 055.

Wages and salaries in private sector grew faster (by 7.6 % annually), rise in public sector comprised 6.8 % and in general government sector 7.1 % annually.

Compared to 2018, the average wages and salaries grew in all economic activities. The sharpest increase (of 13.2 %) was registered in human health and social care. Steep upturn was registered also in administrative and support service activities (of 10.9 %), construction (10.3 %), professional, scientific and technical activities (9.8 %), as well as water supply; sewerage, waste management, and remediation activities (9.2 %).

Growth in professional, scientific and technical activities was influenced by the decline in the number of full-time employees, while wage and salary fund increased. Wage and salary fund in the remaining of the above sectors grew more rapidly than the number of employees.

In 2019, average wages and salaries for full-time work exceeded the national average indicator in seven economic activities – financial and insurance activities, information and communication, energy sector, public administration, professional, scientific and technical activities, mining and quarrying, as well as human health and social work activities.

The lowest average earnings were recorded in accommodation and food service activities (EUR 767), other service activities (that includes activities of public and other organisations, repair of computers and personal and household goods, washing and (dry-)cleaning, hairdressing and other beauty treatment, funeral and related activities) (EUR 819), as well as education (EUR 866).

Compared to 2018, average gross monthly wages and salaries grew faster in Pierīga and Zemgale region – by 8.4 % and 7.9 %, respectively in 2019. Smaller growth was observed in Kurzeme (7.4 %), Vidzeme and Latgale (7.1 % in each region). The lowest average gross wages and salaries for full-time work were registered in Latgale – EUR 751, constituting 38 % less than the earnings in Riga (EUR 1 206).

In Q4 2019, the average monthly gross wages and salaries in the country comprised EUR 1 114, and over the year they have grown by 6.9 %, which is the lowest annual growth, compared to other quarters of 2019. In Q4 2019, the share of irregular bonuses and premiums in the total earnings constituted 7.1 % (approximately 5.0 % in other quarters).

Compared to Q4 2018, in Q4 2019 the highest rise in the average wages and salaries was recorded in private sector – of 7.5 %, in public sector it constituted 6.1 % and in general government sector 7.2 %.

Compared to Q3 2019, gross wages and salaries in the country grew by 2.8 %. Sharper increase was observed in public sector – 2.9 %, compared to 2.7 % in private sector. The average wages and salaries in general government sector went up by 3.1 %.

In Q4, net wages and salaries amounted to EUR 818, and, compared to Q4 2018, they went up by 6.5 %. Compared to Q3 2019, wages and salaries rose by 2.8 %.

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