In the 2nd quarter, average monthly gross wages and salaries amounted to EUR 1 237

Data of the Central Statistical Bureau (CSB) show that in the 2^nd quarter of 2021 the average monthly gross wages and salaries for full-time work comprised EUR 1 237. Compared to the 2^nd quarter of 2020, the average monthly gross wages and salaries grew by EUR 115 or 10.2 %, but gross hourly payment – by 4.6 % (from EUR 8.20 to EUR 8.57).

Compared to the 1^st quarter, in the 2^nd quarter of 2021 average monthly gross wages and salaries increased by 2.6 %, but hourly payment by – 8.4 %.

Average monthly net wages and salaries – EUR 914

Average net wages and salaries (calculated based on labour taxes applicable on workplace) comprised EUR 914 or 73.9 % of gross wages and salaries. During a year it increased by 10.4 %. Considering the consumer price growth, the real increase of the wages and salaries comprised 7.9 %.

Median monthly wages and salaries comprised EUR 960

In the 2^nd quarter of 2021 median monthly gross wages and salaries for full-time work comprised EUR 960. Compared to the 2nd quarter of 2020 (EUR 882) it rose by 8.9 %. In the 2nd quarter of this year, net median wages (after taxes) constituted EUR 713 and rose by 8.3 % 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.

Annual rise in public sector was sharper

In the 2^nd quarter of 2021, average monthly gross wages and salaries in private sector comprised EUR 1 215 and during a year rose by 9.0 %. In public sector average wages and salaries were EUR 75 more (EUR 1 291) than in private sector, and its annual growth rate was faster (13.4 %). 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 1 268 or 14.8 %.

As compared to the 1^st quarter, in private sector average gross wages and salaries rose by 0.7 %, but in public and general government sector – by 6.6 % and 7.4 %, respectively.

Changes of average monthly earnings by sectors

(EUR)

*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, 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.

As the impact of restrictions imposed during the COVID-19 pandemic reduced, in the 2^nd quarter of 2021, compared to the same period of the previous year, the number of salaried workers, recalculated into full-time units, in total in the country increased by 28.6 thousand or 4.1 %. The drop was observed only in transport and storage sector (-1.9 %), education (-1.7 %), energy (-1.0 %), financial and insurance activities (-0.9 %), as well as arts, entertainment and recreation (-0.2 %).

In turn, during a year wage and salary fund rose in all sectors, which in total resulted in its growth in the country of 14.7 % or EUR 349.7 million.

Average monthly wages and salaries in seven sectors above national average

In the 2^nd quarter of 2021 average monthly wages and salaries for full-time work in seven sectors was larger than national average – in financial and insurance activities, information and communication, energy, health and social care, public administration, professional, scientific and technical activities, as well as mining and quarrying.

Average wages and salaries increased faster during the year in health and social care sector – from EUR 1 158 to EUR 1 564 or by 35.1 %, education – by 12.4 % and trade – by 11.7 %.

In the 2^nd quarter of 2021 the smallest average wages and salaries were in accommodation and catering services (EUR 738), other service activities (EUR 956) and arts, entertainment and recreation (EUR 982) sectors.

In Latgale average monthly wages and salaries 36 % less than in Riga

Compared to the 2^nd quarter of 2020, in the 2^nd quarter of 2021 average gross monthly wages and salaries grew faster in Latgale – by 12.9 %. The slowest growth was observed in Pierīga – by 9.3 %. The largest average gross wages and salaries for full-time work were in Riga – EUR 1 382, but the lowest – in Latgale (EUR 887), which is 36 % less than in the capital.

Salary for one hour worked – EUR 8.57

Gross wages and salaries per hour worked in the 2^nd quarter of 2021 were EUR 8.57 and over the year it increased by 4.6 % (in the 2^nd quarter of 2020 – EUR 8.20).

Hourly labour costs, which include both wages and salaries and other labour-related costs of the employer, increased from EUR 10.31 to 10.71 or by 3.8 % during the year, which was affected by the rise in the total sum of labour costs and the number of hours worked by 13.9 % and 9.7 %, respectively.

The largest average wages and salaries and the largest increase in Lithuania

In the 2^nd quarter of 2021 the largest average gross wages and salaries in the Baltic countries were registered in Lithuania – EUR 1 566 for full-time work, in Estonia – EUR 1 538, but in Latvia it was the lowest – EUR 1 237.

As compared to the 2^nd quarter of 2020, in Lithuania there was the most rapid increase in average wages and salaries – of 12.0 %, in Latvia – 10.2 %, but in Estonia – 7.3 %.

Methodological explanations

**Data were updated. 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.

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 CSB compiles information on average wages and salaries by regions according to the address of office of an enterprise or institution, or the main activity.

Changes in average monthly and hourly earnings and hourly labour costs are calculated from non-rounded values.

According to European Union legislation, when compiling data on labour costs, wages and salaries include wages and salaries in kind (goods and services provided by the employer to employees for free or at reduced prices, housing, mobile phones, transport, etc.) and do not include payment for days not worked due to illness, paid by the employer. Other labour costs include compulsory state social insurance contributions paid by the employer, employer's voluntary social insurance contributions (supplementary pension, health, life insurance contributions, etc.), employer benefits, gifts, payment of incapacity certificate A, severance pay, business risk related state duty.

Media requests:
Communication Section
E-mail: media@csp.gov.lv
Phone: +371 67366989, +371 27880666

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