Average earnings before taxes comprised EUR 1 525 in Q2 2023

Data of the Central Statistical Bureau (CSB) show that in the Q2 2023, according to working-day and seasonally non-adjusted data, the average gross wages and salaries for full-time work amounted to EUR 1 525. Compared to Q2 2022, the average monthly earnings increased by EUR 163 or 12.0 %. Hourly earnings before taxes went up to EUR 10.48 or by 13.8 %.

Compared to Q1 2023, in Q2 2023 average gross earnings increased by 4.3 % and hourly earnings by 14.1 %.

Average monthly earnings after taxes EUR 1 114

The average net wages and salaries (calculated based on the labour taxes applicable to employers) comprised EUR 1 114 or 73.0 % of the gross earnings. Overtaking the climb in the consumer prices by 0.1 percentage point, net earnings increased by 11.7 %, pointing to a milder slowdown in the purchasing power of salaried workers.

Median monthly earnings EUR 1 215

In Q2 2023 median gross wages and salaries for full-time work amounted to EUR 1 215. Compared to Q2 2022 (EUR 1 078), it increased by EUR 137 or 12.7 %. In Q2 2023, net median wages (after taxes) constituted EUR 888 and rose by 11.0 % over the year.

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

The median is the average in the middle of the ascending or descending order of wages of the employees, 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 upturn in public sector

In public sector rise in the average earnings was sharper than in private – 12.2 % and 11,9 %, respectively.

In Q2 2023, the average monthly gross earnings before taxes in public sector amounted to EUR 1 549, while in private – lower by EUR 30 (EUR 1 519). The 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 1 492 or by 10.7 %.

Compared to Q1 2023, the average earnings in public sector increased by 8.9 %, of which by 9.2 % in general government sector, but in private sector the rise was lower – by 2.4 %.

Change in average monthly earnings by sectors

*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 labour force demand and supply on and structural changes of the labour market.

The effects caused by the mentioned factors in general may be seen in the changes in wage and salary fund and number of full-time employees, which are used in the average wage calculations.

In Q2 2023, compared to Q2 2022, the national wage and salary fund increased by 13.2 % or EUR 399.4 million while number of salaried workers, recalculated into full-time units, by 7.7 thousand people or 1.0 %.

In terms of economic activities, the sharpest rise in the average earnings was registered in agriculture, forestry and fishing by 20.2 % (the largest rise in fishing), water supply, sewerage, waste management and remediation activities by 19.0 %, mining and quarrying by 18.9 %, transportation and storage by 18.0 % (the largest rise in air transport sector), energy sector by 15.2 % and public administration by 14.6 %. It should be noted that the rapid rise in water supply, sewerage, waste management and remediation activities, mining and quarrying and energy sector was affected not only by the increase in earnings but also by the decline in the number of full-time workers.

Highest-paying economic activities – finance, information and communication 

In Q2 2023 the average gross monthly wages and salaries for full-time work above the national average were recorded in financial and insurance activities (EUR 2 656), information and communication (EUR 2 523), energy sector (EUR 2 041), professional, scientific and technical activities (EUR 1 937), public administration (EUR 1 777), mining and quarrying (EUR 1 710), human health and social work activities (EUR 1 662), water supply, sewerage, waste management and remediation activities (EUR 1 582) as well as agriculture, forestry and fishing (EUR 1 552).

The lowest earnings for full-time were observed in accommodation and food service activities (EUR 985 before taxes).

Sharper rise in Pierīga and Vidzeme

In Q2 2023, compared to Q2 2022, the sharpest rise in the average earnings before taxes was observed in Pierīga (14.9 %) and Vidzeme (14.1 %).

The highest average gross earnings for full-time work were recorded in Riga (EUR 1 690) while the lowest in Latgale (EUR 1 077), which is 36 % fewer than in the capital. The gap between the average in earnings in Riga and regions has narrowed over the year, except of Zemgale. The largest drop was observed in Pierīga (3.1 percentage points).

Hourly earnings EUR 10.48

In Q2 2023 gross hourly earnings amounted to EUR 10.48, and over the year they have grown by 13.8 % (EUR 9.21 in Q2 2022).

Over the year hourly labour costs (which include wages and salaries as well as other labour-related expenses of the employer) rose from EUR 11.55 to EUR 13.12 or by 13.6 %, which was due to the increase in the total labour costs by 13.3 % and drop in hours worked by 0.3 %.

Latvia has the slowest rise of average earnings among the Baltic states

In Q2 2023, compared to Q2 2022, the average gross wages and salaries in Estonia and Lithuania had a similar rise: 12.4 % in Estonia and 12.3 % in Lithuania. Latvian annual growth rate was slightly lower – 12.0 %.

All Baltic states increased national minimum wage in 2023. The highest increase may be observed in Latvia – of 24.0 % (from EUR 500 to 620), followed by Lithuania with 15.1 % (from EUR 730 to 840) and Estonia with 10.9 % (from EUR 654 to 725).

Methodological explanations

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 27880666

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