bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Wednesday 11.12.2019 | Name days: Valdis, Voldemārs, Valdemārs
LatviaLatvia

Net wages and salaries in Latvia up 8.6%

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn Q1 2018 the average monthly gross wages and salaries for full-time work in Latvia comprised EUR 961, growing by 8.6 % or EUR 76 over the year.

Compared to Q1 2017, earnings in private sector rose faster than in public sector. The average wages and salaries in private sector constituted EUR 957 (annual rise of 8.9 %) and in public sector EUR 969 (up by 8.1 %). Average gross wages and salaries in general government sector, which includes central and local government institutions, as well as enterprises controlled and financed by the central and local government, grew to EUR 923 or by 9.0 %, according to data from the Central Statistical Bureau of Latvia.

In Q1 2018, the average net wages and salaries calculated based on the labour taxes applicable on workplace, constituted EUR 713. Over the year, the earnings increased by 10.2 %, which is 1.6 percentage points higher rise than that in earnings before taxes.

Compared to Q4 2017, net wages and salaries increased by 1.8 %.

Considering annual consumer price growth of 2.0 %, the real increase in net wages and salaries comprised 8.0 %.

At the beginning of the year, rise in minimum wage from EUR 380 to EUR 430 or by 13.2 %, introduction of progressive income tax, as well as changes in size of non-taxable minimum had the most notable influence on the changes in average wages and salaries. Mandatory social insurance contributions paid by employees went up by 0.5 percentage points.

Changes in the average wages and salaries are influenced not only by the factors mentioned and rise in employee remuneration, but also by 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 in various economic sectors, as well as state administrative measures in the fight against shadow economy. The effects caused by the mentioned factors in general are reflected as changes in the wage and salary fund and number of full-time employees, which are used in the average wage calculations.

In Q1 2018, compared to 2017, gross wage and salary fund increased by 10.1 % or EUR 195.5 million, whereas the number of salaried workers, recalculated into full-time units, grew by 1.4 % or 9.9 thousand, which is the sharpest growth rate recorded over the past four years.

In Q1 2018, compared to the corresponding period of the previous year, the average wages and salaries rose in all sectors. Wage and salary fund rose faster than the number of full-time employees in all sectors, except for electricity, gas, steam and air-conditioning supply; water supply, sewerage, waste management and remediation; wholesale and retail trade; as well as financial and insurance activities. Wage and salary fund in the mentioned sectors rose, while the number of full-time employees reduced.

At the beginning of the year, the sharpest rise in wages and salaries was recorded in human health and social work activities (of 15.7 %, with the fastest growth in human health activities), agriculture, forestry and fishing (11.5 %, with the fastest growth in crop and animal production, hunting and related service activities), accommodation and food service activities (11.1 %, with the faster growth in accommodation), real estate activities (10.8 %), manufacturing (10.6 %), and construction (10.3 %).

In Q1 2018, the highest average wages and salaries for full-time work were registered in financial and insurance activities, information and communication, energy, public administration, professional, scientific and technical activities, as well as mining and quarrying. In other sectors, the average wages and salaries before taxes were below the national average.

The lowest earnings, in turn, were observed in accommodation and food service activities, 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), education, arts, entertainment and recreation, as well as administrative and support service activities.

Compared to Q1 2017, regional breakdown shows the sharpest rise in the average monthly gross wages and salaries in Latgale (of 11.2 %), Vidzeme (10.0 %), as well as Kurzeme and Pierīga regions (9.2 % in each), while Zemgale region had the lowest annual rise (of 7.0 %) in Q1 2018. The lowest average gross wages and salaries still were observed in Latgale region – EUR 671 for full-time work, followed by Vidzeme with EUR 764, Zemgale with EUR 796, Kurzeme with EUR 800, whereas indicator registered in Pierīga region amounted to EUR 910. The average gross wages and salaries in Riga exceeded EUR 1000 already in 2017 and constituted EUR 1085 in Q1 2018.

Information on the average wages and salaries is broken down by region based on the office address of enterprise or institution.

The data on earnings in the Baltic states show that in Q1 2018 Estonia had the highest average gross wages and salaries – EUR 1242, followed by Latvia with EUR 961 and Lithuania with EUR 895.Compared to Q1 previous year, earnings have increased in all Baltic states. The sharpest rise was recorded in Lithuania (of 9.5 %), followed by Latvia (8.6 %) and Estonia (7.7 %).

It shall be noted that at the beginning of the year, minimum wage was raised in all three countries. In Q1 2018, the highest minimum wage was registered in Estonia (EUR 500, with the annual rise of 6.4 %), Latvia (EUR 430 and 13.2 %), while the lowest was recorded in Lithuania (EUR 400, and 5.3 %). Minimum wage in Latvia and Lithuania constituted 45 % of the average earnings before taxes, while in Estonia the difference was smaller – 40 %.


Leave a reply

Estonian minister says Rail Baltica to be complete on time, despite scepticism

The Rail Baltica massive railway construction would be done by the 2026 deadline Estonian Minister of Economic Affairs and Infrastructure Taavi Aas has said despite scepticism expressed by MPs and Estonian Prime Minister.

Aivars Lembergs may be forced out of Latvian Olympic Committee

The topic of Aivars Lembergs’ dismissal from his post as member of the LOK Executive Committee may be brought up during the Tuesday, 10 December, meeting of Latvian Olympic Committee, BNN was told by LOK President Aldons Vrubļevskis’s press-secretary Mārtiņš Mālmeisters.

Latvian state to take over Riga and Ventpils ports

Latvian state will take over Riga and Ventspils ports, as confirmed by Prime Minister Krišjānis Kariņš.

Czech hospital shooting suspect found dead

Police in the Czech Republic has found dead the man suspected of a shooting attack that left six people dead in a hospital in the city of Ostrava.

Committee’s talks about electing Riga City Council for more than five years; decision postponed

After lengthy and heated discussions on Tuesday, 10 December, Saeima’s Public Administration and Local Government Committee decided to continue discussing amendments that would allow Riga City Council composed in snap elections to function for longer than five years.

Lithuania announces world’s first digital collector coin

The Bank of Lithuania has announced it would issue a blockchain-based digital collector coin in 2020, as it seeks to attract fintech investors and give new impetus to numismatics in the Baltic country.

Aivars Lembergs leaves Ventspils Freeport board

Aivars Lembergs, who has been added by USA to its black list, has decided to leave his post at Ventspils Freeport board, according to his update on Twitter.

Shooting in Czech hospital. Gunman wanted

In the Czech Republic six people have been killed on Tuesday, when a gunman opened fire in a hospital, according to Czech Prime Minister Andrej Babiš.

Unemployment level in Latvia increases to 5.8% in November

At the end of November, unemployment level in Latvia was 5.8% of the economically active population, which is 0.1 percentage point more than a month prior, according to data from the State Employment Agency.

Lembergs avoids giving a clear yes or no to stepping down from Ventspils Freeport board

Aivars Lembergs, who is accused of committing serious crimes, avoided giving a clear yes or no in regards to the possibility of stepping down as chairman of Ventspils Freeport board, according to what he said at a press-conference on Tuesday, 10 December.

Estonia’s new agriculture minister appointed by President

Estonian President Kersti Kaljulaid has on appointed to the post of the Minister of Rural Affairs Arvo Aller from the Estonian Conservative People’s Party weeks after dismissing his predecessor.

Kristovskis: Lembergs should immediately step down from Ventspils Freeport board

Aivars Lembergs’ addition to the Magnitsky list of sanctions requires him to immediately step down from his post as chairman of Ventspils Freeport board, stresses Latvian Finance Ministry’s representative to Ventspils Freeport board Ģirts Valdis Kristovskis.

«Little green men» unmasked. UN condemns Russian occupation of Crimea

The United Nations’ General Assembly has passed a resolution, where the occupation by Russia of the peninsular of Crimea and the city of Sevastopol has been condemned and Moscow has been called on to withdraw its troops from the territories.

Two cigarette smugglers detained on Latvia’s border

Border guard officials in Krāslava have detained two Latvian citizens for illegally carrying excise goods over the border, BNN was told by State Boarder Guard representative Kristīne Pētersone.

Linkaits: Ventspils Freeport’s operations have to be separated from people blacklisted by USA

Operations of Ventspils Freeport should be immediately separated from influence of people and companies blacklisted by USA, said Latvia’s Transport Minister Tālis Linkaits in an interview to Latvijas Radio.

Zelenskiy and Putin agree on cease-fire in Ukraine for December

The presidents of Ukraine and Russia have in a summit in Paris reached an agreement to implement a cease-fire by the end of 2019 and to exchange prisoners.

USA adds Aivars Lembergs to its «black list»

On Monday, 9 December, based on the so-called Magnitsky Law, US Department of Treasury Office of Foreign Asset Control established sanctions against a number of people and their organizations in Europe, Asia and Latin America, including the suspended Mayor of Ventspils Aivars Lembergs.

Average electricity prices in Baltic States down 10%

Nord Pool’s electricity prices in Latvia, Lithuania and Estonia dropped 10% last week – to 41.73 EUR/MWh, as reported by AS Latvenergo representatives.

Russia planning to appeal against sports ban over doping

Russia, which has been handed a ban to participate in mayor international sporting events over manipulations with doping test results, plans to appeal against the decision in the Court of Arbitration for Sport, according to Russian MP Svetlana Zhurova.

Court maintains arrest for Riga Central Market cigarette case suspect Vilnis Visors

On Monday, 9 December, Riga Regional Court decided to keep the security measure against suspect in Riga Central Market illegal cigarette trade case businessman and board member of Tirdzniecības nams Latgales priekšpilsētā Vilnis Visors in place.

Swedbank introduces free operations with securities

Swedbank has abolished the commission fee for operations on Baltic stock markets to promote public interest in deals using shares and other securities, the bank reports.

November’s inflation in Latvia reportedly at 2.1%

Compared to November 2018, the average level of consumer prices rose by 2.1 % in November 2019. Prices of goods had increased by 1.8 % and prices of services by 2.9 %. Compared to 2015, in November 2019 consumer prices were 9.1 % higher. Prices of goods had increased by 7.8 % and prices of services by 12.3 %.

Doping in Russia: Country receives four-year ban from international sporting events

The World Anti-Doping Agency has issued Russia a ban for four years to competed in all prestigious sports competitions for manipulating laboratory results.

Pabriks: it is necessary to increase US military support for Latvia

Between 6th and 7th December, Latvia’s Defence Minister Artis Pabriks participated in Reagan National Security Forum in California. During this forum, the minister met with US Deputy Secretary of Defense John C. Rood, stressing the need to increase US military support for Latvia, BNN was told by the ministry.

Estonian accommodation shows 5%-tourism growth in mid-autumn

Hostels and other places of accommodation in Estonia have hosted in October 2019 a number of tourists that is by 5% larger than in the respective month last year, the official statistics of the Baltic country showed.


Do NOT follow this link or you will be banned from the site!