In 2021, average monthly gross wages and salaries amounted to EUR 1 277

Data of the Central Statistical Bureau (CSB) show that in 2021 the average monthly gross wages and salaries for full-time work comprised EUR 1 277. Compared to 2020, the average monthly gross wages and salaries grew by EUR 135 or 11.8 %, but gross hourly payment – by 7.1 % (from EUR 7.97 to EUR 8.54).

Average monthly net wages and salaries – EUR 939

Average net wages and salaries (calculated based on labour taxes applicable on workplace) comprised EUR 939 or 73.5 % of gross wages and salaries. During a year it increased by 11.7 %. Considering the consumer price growth, the real increase of the wages and salaries comprised 8.1 %.

Median monthly wages and salaries comprised EUR 994

In 2021 median monthly gross wages and salaries for full-time work comprised EUR 994. Compared to 2020 (EUR 893) it rose by 11.3 %. Net median wages (after taxes) constituted EUR 740 and rose by 11.4 % 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.

Average wages and salaries in public sector EUR 20 more than in private sector

In 2021, average monthly gross wages and salaries in private sector comprised EUR 1 273 and during a year rose by 11.9 %. In public sector average wages and salaries were EUR 20 more than in private sector (EUR 1 293), and its annual growth rate was slightly slower (11.8 %). 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 1 268 or 13.1 %.

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, which in 2021, as in the previous year, is also affected by the Covid-19 pandemic crisis.

In addition, 2021 saw significant changes in 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 taxpayers are subject to labour taxes under the general scheme.

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

The wage bill in 2021 increased by 9.0% or EUR 902.8 million compared to last year for the country as a whole, while the number of full-time equivalent employees decreased by 18.6 thousand or 2.6%.

Average wages grew fastest in the health and social work sector, by 28.2 % over the year, where both the wage bill and the number of full-time employees increased. Similar trends were also observed in mining and quarrying, manufacturing and information and communication services.

Average monthly wages and salaries in seven sectors above national average

In 2021, average monthly wages 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, and mining and quarrying.

The lowest average pre-tax wage was in accommodation and food and beverage service activities (EUR 795).

Average monthly wages and salaries in 2021

In Latgale average monthly wages and salaries 38 % less than in Riga

The highest average monthly pre-tax wage for a full-time job in 2021 was in Riga - EUR 1 434, while the lowest was in Latgale (EUR 896), that is 38 % less than in the capital.

Over the year, average gross wages grew fastest in Latgale - by 13.0 %, with the lowest growth in Vidzeme (10.5 %) and Pierīga (10.6 %).

Average monthly pre-tax wage in the 4th quarter was EUR 1 336

In the 4th quarter of 2021, average monthly gross wages and salaries comprised EUR 1 336 and during a year rose by 12.5 %.

In the 4th quarter of 2021 compared to the 4th quarter of 2020, average wages grew faster in the public sector by 13.2 %, in the private sector by 12.4 % and in the general government sector by 14.2 %.

Compared to the 3rd quarter of 2021, gross wages in the country grew by 2.6 %. Growth was more rapid in the public sector (7.5 %), whereas in the private sector 0.4%.  In the general government sector, average wages and salaries grew by 8.2 %. 

Net wages in the 4th quarter comprised EUR 978, an increase of 12.3 % compared to the 4th quarter of 2020. Compared to the 3rd quarter of 2021, the increase was 2.3 %.

Salary for one hour worked – EUR 8.54

Gross wages and salaries per hour worked in 2021 were EUR 8.54 and over the year it increased by 7.1 % (in 2020 – EUR 7.97).

Total hourly labour costs, which include both wages and salaries and other labour-related costs of the employer, increased from EUR 10.06 to 10.72 or by 6.6 % during the year, driven by increases in total labour costs and hours worked of 8.4 % and 1.7 % respectively over the year.

Methodological explanations

At the end of 2021, the data for quarters 1-3 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 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