In the 3rd quarter, the average salary before taxes – EUR 1 280 per month

The data of the Central Statistical Bureau (CSB) show that in the 3^rd quarter of 2021, the average monthly gross salary in the country for full-time work was EUR 1 280. Compared to the 3^rd quarter 2020, the average monthly salary increased by EUR 121 or 10.4 %, but the hourly wages before taxes - by 4.4 % (from EUR 8.09 to EUR 8.44).

In the 3^rd quarter 2021, the average monthly gross salary increased by 3.4 % compared to the 2^nd quarter, while hourly wages decreased by 1.6 %.

Average wages and salaries after taxes – EUR 940

Average net wages and salaries (calculated based on labour taxes applicable on workplace) comprised EUR 940 or 73.4 % of the gross salary. It increased by 10.3 % during the year. The real increase in net wages and salaries, taking into account the rise in consumer prices, was 6.3 %.

Median wages and salaries comprised EUR 1 003

The median gross wages and salaries for a full-time job in the 3^rd quarter 2021 was EUR 1 003. Compared to the 3^rd quarter of 2020 (EUR 917), wages and salaries in the country increased by 9.3 %. In the 3^rd quarter of this year, net median wages and salaries after taxes (net) constituted EUR 749 and rose by 8.1 % 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 workers, 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.

In the public sector annual growth was faster

In the 3^rd quarter of 2021, the average monthly gross salary in the private sector was EUR 1280, and it increased by 10.4 % during the year. In public sector, the average salary was EUR 1 287, growing at a slightly faster annual rate (10.9 %). 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 1 260 or by 11.9 %.

Compared to the 2^nd quarter, in private sector average gross wages and salaries rose by 5.3 %, while in public and general government sector decreased– by 0.3 % and 0.6 %, respectively.

Changes of average monthly gross salaries by sectors

(EUR)

*Without foundations, associations, funds, and their commercial companies

Average wages and salaries are affected not only by increases or decreases in wages and salaries of employees, but also by structural changes in the labour market: companies that started and closed down during the year, changes in the number and workload of workers, which in 2021, as in the previous year, is also affected by the Covid-19 pandemic crisis.

In addition, the 3^rd quarter of this year saw significant changes in the area of labour-related taxation, with the introduction of compulsory minimum national social security contributions from 1 July and the end of the transitional period after which all employees of micro-enterprise tax payers are subject to labour taxes under the general regime.

The impact of these factors is generally reflected in changes in the wage bill and the number of full-time employees used to calculate average wages.

The wage bill in the 3^rd quarter 2021 compared to the 3^rd quarter last year increased by 11.1 % or EUR 283.6 million for the country as a whole, while the number of full-time equivalent employees increased by 4.4 thousand or 0.6%.

Over the year, average wages and salaries grew fastest in the health and social work sector, by 24.3 %, where both the wage bill and the number of full-time employees increased. Similar trends were also observed in mining and quarrying, manufacturing, trade, information and communication services.

In eight sectors, the average monthly salary is above the national average

In the 3^rd quarter 2021, average monthly wages  and salaries for full-time work were above the national average in financial and insurance activities, information and communication services, professional, scientific and technical services, health and social work, energy, public administration, mining and quarrying, as well as construction.

The lowest average wages and salaries before taxes were in accommodation and food services (EUR 855), as well as education (EUR 988).

Wages and salaries in Latgale on average 36 % less than in Riga

In the 3^rd quarter 2021 the highest average salary before taxes for full-time work was in Riga - EUR 1427, while the lowest - in Latgale (EUR 912), which is 36 % less than in the capital of the country.

Over the year, average gross wages and salaries grew fastest in Latgale - by 13.0 %, while the lowest increase was in Vidzeme (9.5 %).

Wages and salaries for one hour worked – EUR 8.44

Gross wages and salaries per hour worked in the 3^rd quarter 2021 were EUR 8.44 and during the year it increased by 4.4 % (in the 3^rd quarter 2020 - EUR 8.09).

Compared to the 3^rd quarter 2011, hourly earnings decreased in real estate (-4.9 %), other services (includes activities of social, political and other organisations, repair of personal and household goods, dry cleaning, hairdressing, beauty, funeral and other services) sector (-4.5 %), accommodation and food services (-4.2 %), construction (-0.8 %) and manufacturing (-0.2 %).

Labour costs per hour, which include both wages and other labour-related expenses of the employer, increased from EUR 10.22 to EUR 10.64, or by 4.0 % over the year, driven by increases in total labour costs and hours worked, by 10.6 % and 6.3 % respectively over the year.

Highest average wages and salaries in Lithuania, fastest growth in Latvia

In the Baltic States, the highest average gross salary in the 3^rd quarter 2021 was EUR 1 598 for full-time work in Lithuania, EUR 1 553 in Estonia and EUR 1 280 in Latvia.

Compared to the 3^rd quarter of 2020, the average wages and salaries grew fastest in Latvia - by 10.4 %, in Lithuania by 9.9 % and in Estonia by 7.8 %.

Methodological explanations

The data source used for wage and salary statistics is the sample survey of individual merchants, 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 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, awards, gifts, payments for sick list A, severance pay, entrepreneurship state risk 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
Tālr.: +371 67366917