RDS2003
Annual increase of average wages and salaries – 3.9 %
Compared to the 2nd quarter of 2019, in the 2nd quarter of 2020 the average gross wages and salaries for full-time work increased by 3.9 % or EUR 42 and comprised EUR 1 118.
In April 2020, compared to April 2019, the average gross monthly wages and salaries increased by 3.6 %, reaching EUR 1 113. Annual growth rate in May was the lowest – 2.5 % (EUR 1 105), but in June it rose to 5.6 % (EUR 1 134).
Compared to the 1st quarter of 2020, in the 2nd quarter of 2020 gross wages and salaries increased by 1.6 %.
Average wages and salaries after taxes – EUR 824
Average net wages and salaries (calculated based on labour taxes applicable on workplace) comprised EUR 824. Over the year, it rose by 3.9 %, but, as compared to the 1st quarter of 2020, – by 1.5 %.
Considering the consumer price growth, the real increase of the wages and salaries comprised 2.0 %.
Median wages and salaries comprised EUR 878
In the 2nd quarter of 2020, median gross wages and salaries amounted to EUR 878 (in the 2nd quarter of 2019 – EUR 838). Compared to the 2nd quarter of 2019, it rose more rapidly than the average wages and salaries (4.7 %). In the 2nd quarter of this year, net median wages (after taxes) constituted EUR 660 and rose by 4.2 % over the year.
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 influenced by extremely high or low wages and salaries less, it reflects typical earnings more precisely.
Median is calculated based on the information available in statistical surveys and the State Revenue Service.
Identical annual increase in public and private sectors
In the 2nd quarter of 2020, average gross wages and salaries in private sector amounted to EUR 1 108, but in public sector – EUR 30 more (EUR 1 138). Both in public and private sectors average gross monthly wages and salaries before taxes increased the same – by 3.8 %. General government sector, which includes central and local government institutions, as well as enterprises controlled and financed by the central and local government, average wages and salaries increased to EUR 1 105 or 6.2 %.
As compared to the 1st quarter of 2020, in private sector average gross wages and salaries rose by 0.7 %, in public sector – by 3.1 %, but in general government sector – by 4.1 %.
Changes of average monthly earnings by sectors
(EUR)
| 2nd quarter of 2019 | 1st quarter of 2020 | 2nd quarter of 2020 | 2nd quarter of 2020 Changes, as per cent over | |
2nd quarter of 2019 | 1st quarter of 2020 | ||||
Total | 1 075 | 1 100 | 1 118 | 3.9 | 1.6 |
private sector | 1 068 | 1 100 | 1 108 | 3.8 | 0.7 |
public sector* | 1 097 | 1 104 | 1 138 | 3.8 | 3.1 |
general government sector | 1 040 | 1 061 | 1 105 | 6.2 | 4.1 |
*Without foundations, associations, funds, and their commercial companies.
Changes in the average wages and salaries are influenced not only by the rise or drop in employee remuneration and income-related changes in taxes, 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.
Affected by COVID-19 crisis, number of salaried workers, recalculated into full-time units, reduced more rapidly than gross wage and salary fund – by 7.0 % or 53.1 thousand. Annual changes of gross wage and salary fund comprised 3.3 % or – drop of EUR 82.2 million.
Drop of 16.5 % in accommodation and food service activities
In the 2nd quarter of 2020, compared to the 2nd quarter of 2019, average wages and salaries in accommodation and food service activities fell by 16.5 % (in April – by 21.4 %, in May – by 20.2 %, but in June – by 10.2 %), but in transportation and storage sector – by 5.1 % (in April – by 7.1 %, in May – by 6.5 %, but in June – by 1.6 %). Average wages and salaries during a year have also slightly reduced in real estate sector – by 1.5 % and in arts, recreation and entertainment sector – by 1.0 %.
In the 2nd quarter of this year, compared to the 2nd quarter of 2019, average wages and salaries increased more rapidly in 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) – by 14.3 %, where the number of full-time units reduced the most (-20.2 %), while wage and salary fund dropped by 8.8 %.
The largest average wages and salaries in financial and insurance activities
In the 2nd quarter of 2020, average monthly gross wages and salaries for full-time work was larger than that of average indicator in the country (EUR 1 118) in financial and insurance activities (EUR 2 160), information and communication (EUR 1 813), energy (EUR 1 496), public administration (EUR 1 356), professional, scientific and technical activities (EUR 1 313), mining and quarrying (EUR 1 227), as well as human health and social work activities (EUR 1 156) and water supply, sewerage, waste management and remediation activities (EUR 1 130).
The smallest average wages and salaries were registered in accommodation and food service activities (EUR 646), arts, entertainment and recreation (EUR 894), and education (EUR 895).
Average monthly earnings and changes thereof by economic activity; Q2 2019 and Q2 2020
Sharpest rise in earnings recorded in Latgale region
Compared to the 2nd quarter of 2019, in the 2nd quarter of 2020 out of all regions in Latvia average gross monthly wages and salaries grew faster in Latgale region – by 5.3 % and Pierīga – by 4.9 %. In Riga and other regions annual changes of average wages and salaries were similar – from 3.4 to 3.9 %. In the 2nd quarter of this year the average monthly gross wages and salaries in Riga were the largest – EUR 1 248 for full-time work, but the smallest – in Latgale (EUR 786).
Average monthly gross wages and salaries in Q2 2019 and Q2 2020 by region
The largest average gross wages and salaries in Estonia, the largest increase in Lithuania
In the 2nd quarter of 2020 the largest average gross wages and salaries in the Baltic countries were registered in Estonia – EUR 1 433 for full-time work, in Lithuania – EUR 1 399, but in Latvia – EUR 1 118.
As compared to the 2nd quarter of 2019, in Estonia average wages and salaries increased 1.0 %, in Latvia – by 3.9 %, but in Lithuania – by 8.5 %.
Methodological explanations
Data of 2020 are provisional. Data on the beginning of the year are revised each quarter in line with the routine data revisions defined in the CSB Revision Policy guidelines, 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.
The data source used for wage and salary statistics is the sample survey of individual merchants, commercial companies, state and local government institutions, foundations, associations and funds, as well as administrative data sources.
The CSB calculations of average wages in public sector include central and local government institutions and their commercial companies, companies with central or local government capital participation of 50 % and over, excluding foundations, associations, funds, and their commercial companies.
The CSB compiles information on average wages and salaries by regions according to the address of office of an enterprise or institution.
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.
The changes in the average monthly wages and salaries are calculated as not-rounded values, i.e., taking into account the value in euro cents.
When calculating the average monthly wages and salaries, the number of salaried employees is re-calculated into full-time units, thus eliminating the differences in salaries paid for different workloads ensuring comparability of indicators.
Starting with the data on the 1st quarter of 2019, calculation methodology of net median wages (after taxes) has been revised.
State-subsidized benefits for downtime caused by COVID-19 crisis are not included in the calculation data of average wages and salaries.
Media requests:
Communication Section
E-mail: media@csb.gov.lv
Phone: +371 67366989, +371 27880666
More information on data:
Lija Luste
Wage Statistics Section
E-mail: Lija.Luste@csb.gov.lv
Phone: +371 67366917
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