Average earnings EUR 1 623 in Q1 2024

Central Statistical Bureau (CSB) working-day and seasonally non-adjusted data show that in Q1 2024 the gross average wages and salaries for full-time work amounted to EUR 1 623 and over the year they have increased by EUR 162 or 11.0 %. Hourly earnings before taxes went up to EUR 10.65 or by 16.0 %.

Over the quarter, the gross average earnings increased by 0.8 % and hourly earnings by 1.3 %.

Average monthly earnings after taxes EUR 1 180

The net average wages and salaries (calculated based on the labour taxes applicable to employers) constituted EUR 1 180 or 72.7 % of the gross earnings and over the year grew by 10.2 % thus overtaking the climb in the consumer prices. The real increase in the net earnings, considering the price rise, was 9.3 %.

The national minimum wage in Latvia grew from EUR 620 to 700 or by 12.9 % as of 1 January 2024.

Median monthly earnings EUR 1 293

In Q1 2024, the gross median wages and salaries for full-time work amounted to EUR 1 293. Over the year, the gross median earnings increased by EUR 144 or 12.5 % (from EUR 1 149 in Q1 2023). The net median earnings (after taxes) were EUR 957 and over the year have risen by 11.7 %.

Sharper annual upturn in public sector

In public sector annual rise in the average earnings was 7.4 percentage points higher than in private – 16.3 % and 8.9 %, respectively.

In Q1 2024, the average monthly earnings before taxes in public sector totalled EUR 1 657 while in private were EUR 43 lower, i.e., EUR 1 614. 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 1 606 (up by 17.6 % over the quarter). The average earnings in public sector reduced by 0.7 % over the quarter, in general government sector by 1.6 % while in private sector rose by 1.8 %.

The state budget approved for 2024 provides for an increase in the earnings of employees working for the institutions subordinate to the Ministry of the Interior and the Ministry of Justice as well as in the health, social affairs, education and culture sectors. The remuneration reform that foresees gradual shift towards more competitive remuneration in the public administration (launched in 2022) will be still implemented as well.

Change in average monthly earnings by sector

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

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

In Q1 2024, compared to Q1 2023, the national wage and salary fund rose by 10.1 % or EUR 324.0 million while the number of salaried workers (recalculated into full-time units) reduced by 6.5 thousand people or 0.9 %.

In terms of economic activities, the sharpest rise in the average earnings was registered in education (20.4 %), followed by public administration and defence (15.8 %), accommodation and food service activities as well as other service activities (which include activities of religious, political, etc. membership organisations, repair of computers and personal and household goods, washing and (dry-)cleaning of textile and fur products, hairdressing and other beauty treatment, funeral and related activities, etc. personal service activities) (13.8 %), as well as transportation and storage (12.0 %).

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

In Q1 2024, the gross average monthly earnings from full-time work above the national average were recorded in financial and insurance activities (EUR 2 956), information and communication (EUR 2 675), energy sector (EUR 2 118), professional, scientific and technical activities (EUR 2 092), public administration (EUR 1 883), human health and social work activities (EUR 1 680), as well as mining and quarrying (EUR 1 666).

The lowest gross earnings from full-time work were observed in accommodation and food service activities (EUR 1 071).

Sharper rise in earnings registered in Latgale

In Q1 2024, compared to Q1 2023, the sharpest rise in the average earnings before taxes was observed in Latgale (12.5 %), followed by Vidzeme (11.6 %) and Zemgale (11.2 %).

The highest gross average earnings from full-time work were recorded in Riga (EUR 1 804) while the lowest in Latgale (EUR 1 151, which is 36 % fewer than in the capital). The gap between the average earnings in Riga and regions has narrowed in all regions, except for Kurzeme. The largest drop (of 1.0 percentage points) was observed in Latgale.

* As of 1 January 2024, the new statistical regions and the territories thereof coincide with the territories of the planning regions.

Hourly earnings EUR 10.65

In Q1 2024, the gross hourly earnings amounted to EUR 10.65, and over the year they have grown by 16.0 % (EUR 9.18 in Q1 2023).

Driven by 10.9 % increase in the total labour costs and 5.1 % drop in the hours worked, hourly labour costs (which include wages and salaries as well as other labour-related expenses of the employer) rose from EUR 11.56 to EUR 13.50 or by 16.9 % over the year. It should be noted that in Q1 2024 there were two working days fewer than in Q1 2023.

Latvia has the sharpest annual rise in the average earnings among the Baltic states

In Q1 2024, compared to Q1 2023, the sharpest rise in the average earnings before taxes was registered in Latvia (11.0 %), followed by Lithuania (10.3 %), while the slowest in Estonia (8.8 %).  

The national minimum wage rose in all Baltic states in 2024, moreover in Q1 2024 its ratio to the average national earnings was similar in all three countries – 43 %.

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.

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

Average monthly and hourly earnings and change in hourly 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