Average monthly earnings before taxes EUR 1 537 in 2023

Central Statistical Bureau (CSB) data show that in 2023 the gross average monthly wages and salaries for full-time work amounted to EUR 1 537 and compared to 2022 they have increased by EUR 164 or 11.9 %. Hourly earnings before taxes went up to EUR 10.14 or by 11.5 %.

Average monthly earnings after taxes EUR 1 119

The net average wages and salaries (calculated based on the labour taxes applicable to job) amounted to EUR 1 119 or 72.9 % of the gross earnings and over the year they have grown by 11.3 %. However, the real increase in the net earnings considering the price rise was 2.2 %.

The change in the average earnings in 2023 was driven by an increase in the national minimum wage from EUR 500 to 620 for full-time work (24.0 %) as well as higher maximum non-taxable minimum and the coefficient used to calculate differentiated non-taxable minimum.

Median monthly earnings EUR 1 225

The gross median wages and salaries for full-time work amounted to EUR 1 225 in 2023. Compared to 2022 (EUR 1 081) they have increased by 13.4 %. The net median earnings (after taxes) were EUR 905 and have risen by 12.4 % over the year.

Median is calculated based on the information available in statistical surveys and State Revenue Service. Median is an 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 average earnings observed in public sector

In 2023 the gross average monthly earnings in the public sector (EUR 1 553) were EUR 20 higher than in the private sector (EUR 1 533), moreover public sector had sharper earnings upturn (public of 13.1 % and private of 11.5 %). 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 1 502 or by 12.2 %.

Change in average monthly earnings by sector

(EUR)

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

Apart from the rise or decline in the remuneration of employees, average earnings are also influenced by the trends in the labour force demand and supply as well as structural changes of the labour market. Generally, the mentioned factors contribute to changes of the wage and salary fund and number of full-time workers, which are also used to calculate average earnings.

In 2023, compared to 2022, the national wage and salary fund rose by 12.9 % or EUR 1 571.2 million while the number of salaried workers (recalculated into full-time units) by 6.8 thousand people or 0.9 %.

In terms of economic activities, the sharpest rise in the average earnings was registered in agriculture, forestry and fishing (18.2 %), energy sector (17.5 %), transportation and storage (15.5 %), public administration and defence (15.0 %), education (14.8 %) and mining and quarrying (14.3 %).

Ranking of the highest-paying economic activities stable

In 2023 gross average monthly earnings from full-time work above the national average were recorded in financial and insurance activities, information and communication, energy sector, professional, scientific and technical activities, public administration and defence, mining and quarrying, human health and social work activities, as well as agriculture, forestry and fishing.

The lowest earnings from full-time work were registered in accommodation and food service activities (EUR 993).

Average earnings in Latgale 37 % lower than in Riga

In 2023, compared to 2022, the sharpest rise in the average earnings before taxes was recorded in Vidzeme (13.5 %), followed by Latgale (12.7 %) and Pierīga (12.6 %). The highest gross average earnings from full-time work were recorded in Riga (EUR 1 706) and Pierīga (EUR 1 505) while the lowest in Latgale (EUR 1 083, which is 37 % fewer than in the capital). The gap between the average in earnings in Riga and regions has narrowed in all regions. The largest drop may be observed in Vidzeme (1.5 percentage points).

Average earnings before taxes EUR 1 610 in Q4 2023

In Q4 2023 gross average monthly earnings were EUR 1 610, and over the year they have grown by 11.6 %.

The highest annual rise in the average earnings was recorded in public sector and general government sector – 15.0 %, while in private sector they went up by 10.1 %.

Over the quarter national gross earnings grew by 4.0 %. A sharper rise – 6.6 % – was registered in public sector. Gross earnings in private sector went up by 2.7 % and in general government sector by 7.6 %. 

Net earnings were EUR 1 167 in Q4 2023. Over the year they have gone up by 10.6 % and over the quarter by 3.6 %.

Hourly earnings EUR 10.14

In 2023 gross hourly earnings were EUR 10.14 (working-day non-adjusted data) and over the year they have grown by 11.5 % (EUR 9.10 in 2022).

The hourly labour costs (which include wages and salaries as well as other labour-related expenses of the employer) rose from EUR 11.46 to 12.76 or by 11.3 % over the year, which was due to an annual increase in both the total labour costs and the hours worked (of 13.0 % and 1.5 %, respectively)

Methodological information

Q1–Q3 2023 data were specified at the end of 2023. In line with the routine data revisions defined by the CSB Revision Policy guidelines, the data on the beginning of the year are specified as each quarter 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 earnings 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