Average earnings EUR 1 549 in Q3 2023

Central Statistical Bureau (CSB) data show that in the Q3 2023 the gross average wages and salaries for full-time work amounted to EUR 1 549, according to working-day and seasonally non-adjusted data. Compared to Q3 2022, the average monthly earnings increased by EUR 164 or 11.8 %. Hourly earnings before taxes went up to EUR 10.45 or by 14.9 %.

Compared to Q2 2023, in Q3 2023 the gross average earnings increased by 1.5 % and hourly earnings reduced slightly – by 0.3 %.

Average monthly earnings after taxes EUR 1 126

The net average wages and salaries (calculated based on the labour taxes applicable to employers) constituted EUR 1 126 or 72.7 % of the gross earnings and over the year grew by 11.0 % thus overtaking the climb in the consumer prices. The real increase in the net earnings, considering the price rise, was 5.7 %.

Median monthly earnings EUR 1 250

In Q3 2023 gross median wages and salaries for full-time work amounted to EUR 1 250. Compared to Q3 2022 (EUR 1 107), gross median earnings increased by EUR 144 or 13.0 %. In Q3 2023, net median earnings (after taxes) were EUR 932 and over the year have risen by 12.4 %.

Median is calculated based on the information available in statistical surveys and 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 annual upturn in public sector

In public sector annual rise in the average earnings was sharper than in private – 13.7 % and 11.1 %, respectively.

In Q3 2023, the average monthly earnings before taxes in public sector were EUR 1 564 while in private EUR 18 lower (EUR 1 546). 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 1 517 or by 13.1 %.

Compared to Q2 2023, the average earnings in public sector increased by 1.0 %, of which by 1.7 % in general government sector and slightly more – by 1.8 % – in private sector.

Change in average monthly earnings by sector

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

Apart from the employee remuneration rise or decline, the average earnings are also influenced by labour force demand and supply trends as well as labour market structural changes. Generally the effects caused by the mentioned factors are wage and salary fund and full-time worker number changes which are used in the average earnings calculations as well.

In Q3 2023, compared to Q3 2022, the national wage and salary fund rose by 12.1 % or EUR 377.3 million while the number of salaried workers (recalculated into full-time units) by 2.0 thousand people or 0.3 %.

In terms of economic activities, the sharpest rise in the average earnings was registered in energy sector (17.7 %), agriculture, forestry and fishing (16.7 %; the most notable increase in forestry and logging), public administration (15.7 %), transportation and storage (15.5 %;  the most notable increase in air transport), real estate activities (14.1 %), professional, scientific and technical activities (13.6 %), arts, entertainment and recreation (13.5 %), as well as education (13.3 %). The sharp increase in real estate activities was driven by both more means allocated to remuneration and smaller number of full-time workers.

Highest-paying economic activities: financial activities, information and communication 

In Q3 2023 the gross average monthly earnings from full-time work above the national average were recorded in financial and insurance activities (EUR 2 627), information and communication (EUR 2 512), professional, scientific and technical activities (EUR 2 026), energy sector (EUR 1 965), public administration (EUR 1 855), mining and quarrying (EUR 1 753), human health and social work activities (EUR 1 680), as well as agriculture, forestry and fishing (EUR 1 562).

The lowest earnings from full-time work were observed in accommodation and food service activities (EUR 1 009 before taxes).

Sharper rise in Vidzeme

In Q3 2023, compared to Q3 2022, the sharpest rise in the average earnings before taxes was observed in Vidzeme (13.4 %), followed by Latgale (12.6 %) and Kurzeme (12.2 %).

The highest gross average earnings from full-time work were recorded in Riga (EUR 1 715) while the lowest in Latgale (EUR 1 102, which is 36 % fewer than in the capital). The gap between the average in earnings in Riga and regions has narrowed in all regions. The largest drop in the net average earnings was observed in Vidzeme (1.4 percentage points).

Hourly earnings EUR 10.45

In Q3 2023 gross hourly earnings amounted to EUR 10.45, and over the year they have grown by 14.9 % (EUR 9.09 in Q3 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 11.42 to EUR 13.07 or by 14.5 %, which was due to the increase in the total labour costs by 12.1 % and a drop in the hours worked by 2.1 %. It should be noted that in Q3 2023 there were two working days fewer than in Q3 2022.

Lithuania has the sharpest rise of average earnings among the Baltic states

In Q3 2023, compared to Q3 2022, the sharpest rise in the average earnings before taxes was registered in Lithuania (12.2 %), followed by Latvia (11.8 %), while the slowest in Estonia (10.4 %). 

Methodological information

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 average wage calculations for a 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 European Union laws and regulations, 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, sick pay (page 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