In 2022 average earnings before taxes amounted to EUR 1 373 monthly

Data of the Central Statistical Bureau of Latvia (CSB) show that in 2022 the average gross wages and salaries for full-time work amounted to EUR 1 373. Compared to 2021, the average monthly earnings grew by EUR 95 or 7.5 % and hourly earnings before taxes by 6.6 % (from EUR 8.54 to 9.10).

Average monthly earnings after taxes EUR 1 006

The average net wages and salaries (calculated based on the labour taxes applicable to employers) comprised EUR 1 006 or 73.3 % of the gross earnings and rose by 7.1 % over the year. However, considering rise in the consumer prices, net earnings fell by 8.7 %, pointing to a sharp decline in the purchasing power of salaried workers.

Median monthly earnings EUR 1 081

In 2022 median gross wages and salaries for full-time work amounted to EUR 1 081. The indicator has risen by 8.8 %, compared to 2021. Net median wages (after taxes) amounted to EUR 806 and have grown by 8.9 % 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 in the middle of the ascending or descending order of wages of workers, i.e., half of the wages are higher than the median and the other half are lower. 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.

Sharper average earnings upturn observed in private sector

In 2022 the average monthly gross wages and salaries in private sector were two euros higher than in public sector (EUR 1 375 and EUR 1 373, respectively) and show higher annual growth rate than in public sector (8.0 % and 6.2 %, respectively). Average earnings in general government sector, which includes central and local government institutions as well as enterprises controlled and financed by the central and local government, went up to EUR 1 339 or by 5.6 %.

Change in average monthly earnings by sector

(euro)

* Excluding foundations, associations, funds and commercial companies thereof.

Change in the average wages and salaries is influenced not only by the rise or decline of employee remuneration but also structural changes of the labour market – enterprises that have 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 are reflected as change in the wage and salary fund and number of full-time employees, which are used in the average wage calculations.

In 2022, compared to the year before, national wage and salary fund increased by 11.5 % or EUR 1 249.7 million while number of salaried workers, recalculated into full-time units, by 26.5 thousand people or 3.7 %.

In terms of economic activities, the sharpest rise in the average earnings was registered in water supply, sewerage, waste management, and remediation activities (13.1 %), accommodation and food service activities (11.8 %), as well as agriculture, forestry and fishing and transportation and storage (11.0 %). The smallest increase was recorded in human health and social work activities (2.5 %), other service activities (4.9 %), and construction (5.2 %).

Highest-paying economic activity ranking remains unchanged

In 2022, just like the year before, the average gross monthly wages and salaries for full-time work above the national average were recorded in financial and insurance activities, information and communication, professional, scientific and technical activities, energy sector, human health and social work activities, public administration and defence, as well as mining and quarrying.

The lowest average gross earnings were observed in accommodation and food service activities (EUR 889).

Average earnings in Latgale 37 % lower than in Riga

In 2022 the highest average gross earnings for full-time work were observed in Riga (EUR 1 535) while the lowest in Latgale (EUR 961, which is 37 % fewer than in the capital).

The highest rise in the average earnings before taxes was recorded in Pierīga (of 9.1 %) while the lowest in Zemgale (6.0 %). 

Average monthly earnings before taxes EUR 1 443 in Q4 2022 

In the Q4 2022 the average monthly gross wages and salaries in the country amounted to EUR 1 443 and over the year they have grown by 8.0 %.

Compared to Q4 2021, in Q4 2022 the highest rise in the average earnings was recorded in private sector – of 9.3 %, followed by private sector with 4.9 % and general government sector with 4.1 %.

Compared to Q3 2022, gross earnings in the country grew by 4.2 %. Sharper increase was observed in public sector – 5.5 %. Upturn in private sector constituted 3.6 % and in general government 5.9 %. 

In Q4 2022 net wages and salaries amounted to EUR 1 055. Compared to Q4 2021 they have risen by 7.9 % and compared to Q3 2022 by 4.0 %.

Hourly earnings EUR 9.10

In 2022 gross hourly earnings amounted to EUR 9.10, and over the year they have grown by 6.6 % (EUR 8.54 in 2021).

Over the year hourly labour costs (which include wages and salaries as well as other labour-related expenses of the employer) rose from EUR 10.70 to EUR 11.46 or by 7.1 %, which was due to the increase in the total labour costs and hours worked – of 11.7 % and 4.4 %, respectively.

Methodological explanations

At the end of 2022 the data on Q1–Q3 were specified. In line with the routine data revisions defined by the CSB Revision Policy guidelines, the data on the beginning of the year are specified each quarter as new economically active enterprises and institutions are added to the population of the statistical units surveyed, kinds and sectors of economic activities of enterprises are specified, additional or specified information from respondents or updated data from administrative data sources are received.

Wage and salary statistics is produced based on the results of a sample survey conducted among merchants, state and local government institutions, foundations, associations and funds, as well as administrative data.

CSB calculations of average wages in public sector include central and local government institutions and commercial companies thereof, companies with central or local government capital participation of 50 % and over, excluding foundations, associations, funds, and commercial companies thereof.

According to the European System of Accounts, the general government sector includes central and local government institutions, social security fund, enterprises controlled and financed by the central and local governments.

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

Average monthly and hourly earnings and change in labour costs are calculated from not rounded figures.

In line with the regulatory enactment of the European Union, when compiling data on labour costs, wages and salaries include remuneration in kind (goods and services provided by the employer to employees free of charge or at a lower price, living quarters, mobile telephone, transport compensation, etc.) and exclude payment for the days not worked due to illness that is paid by the employer. Other labour costs include statutory social security contributions payable by the employer, employers’ contractual and voluntary social security contributions (additional pension insurance contributions, health and life insurance contributions, etc.), support payments from the employer, gifts, payments of a sick list A, severance pay, entrepreneurship state risk duty.

Media requests:
Communication Section
E-mail: media@csp.gov.lv
Phone: +371 67366989, +371 27880666

More information on data:
Lija Luste
Wage Statistics Section
E-mail: Lija.Luste@csp.gov.lv
Phone: +371 67366917