In 2017, average earnings constituted 926 euros

01.03.2018

Data of the Central Statistical Bureau (CSB) show that in 2017 the average gross wages and salaries for full-time work in Latvia comprised 926 euros. Compared to 2016, the average wages and salaries rose by 67 euros or 7.9 %, moreover in all economic activities.

The average net wages and salaries constituted 676 euros or 72.9 % of the gross wages and salariesand increase thereof observed during the year (of 7.0 %) was smaller than the rise before taxes.

Considering the consumer price growth of 2.9 % in 2017, the real increase in wages and salaries comprised 4.0 %.

Last year, compared to 2016, the minimum non-taxable minimum applicable at work fell from 75 euros to 60 euros, whereas the national minimum wage rose by 2.7 % (from 370 euros to 380 euros).

In 2017, the average gross wages and salaries in private sector amounted to 915 euros and to 951 euros in public sector, while in general government sector, which includes central and local government institutions, as well as enterprises controlled and financed by the central and local government, to 904 euros. Wages and salaries in private sector grew faster (by 8.3 % annually), while rise in the public sector comprised 7.4 % and in general government sector 8.1 %.

Changes in the average wages and salaries are influenced not only by the increase in employee remuneration, but also structural changes of the labour market – enterprises that had started or stopped their business during the year, changes in the number of employees and workloads in various economic sectors, as well as state administrative measures in the fight against shadow economy. In general, the effects caused by the mentioned factors are reflected as changes in the wage and salary fund and number of full-time employees, which are used in the average wage calculations.

Compared to 2016, in 2017 gross wage and salary fund increased by 8.2 % or 631.6 mill. euros, whereas the number of salaried workers, recalculated into full-time units, grew only by 0.4 % or 2.7 thou. It should be noted that over the four recent years the average growth rate of the number of employees in the country was very low, and increase in the wage and salary fund was the one having the greatest influence on the changes in average earnings.

Changes in average monthly gross earnings, wage and salary fund and number of full-time employees
(as per cent)

 

Compared to 2016, the average wages and salaries grew in all economic sectors. The sharpest rise in the average earnings (of 11.8 %) was observed in professional, scientific and technical activities (that include legal and accounting activities, advertising and market research, architectural and engineering activities, management consultancy activities, scientific research and development, etc.), with the greatest upturn in activities of head offices; management consultancy activities, advertising and market research as well as scientific research and development.  Earnings in education went up by 10.3 %, in wholesale and retail trade of 9.5 % (with the sharpest rise in wholesale), in mining and quarrying of 9.3 %, in agriculture, forestry and fishing by 8.8 % (with the sharpest rise in fishing), in accommodation and food service activities of 8.7 % (with the sharpest rise in food service activities), in information and communication of 8.3 %, and in manufacturing of 8.2 %.

Increase in the average wages and salaries in all mentioned highest-level sectors of the classification of economic activities, except for agriculture, forestry and fishing and information and communication, was influenced by the increase in wage and salary fund and reduction in the number of full-time employees. In agriculture, forestry and fishing and in information and communication, in turn, wage and salary fund rose faster than the number of employees.

In 2017, the highest wages and salaries for full-time work were registered in financial and insurance activities, information and communication, energy, public administration and defence, mining and quarrying, as well as professional, scientific and technical activities.  In other sectors, the average wages and salaries before taxes were below the national average.

The lowest wages and salaries, in turn, were observed in accommodation and food service activities, other service activities (that includes activities of public and other organisations, repair of computers and personal and household goods, washing and (dry-)cleaning, hairdressing and other beauty treatment, funeral and related activities), education, real estate activities, as well as arts, entertainment and recreation.

Average monthly gross wages and salaries and changes thereof in 2017

 

Compared to 2016, in 2017 regional breakdown shows the sharpest rise in the average monthly gross wages and salaries in Vidzeme region – of 9.5 %. The increase recorded in other regions varies between 8.0 % and 8.4 %. The annual growth observed in Riga that had the highest earnings in 2017 (1044 euros) was the lowest among all regions – 7.6 %.  The lowest average gross wages and salaries still were observed in Latgale region – 640 euros for full-time work, followed by Vidzeme with 739 euros, Kurzeme with 775 euros, Zemgale with 786 euros, whereas indicator registered in Pierīga region amounted to 871 euros.

Average monthly gross wages and salaries by region; 2017

 

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.

 

Quarterly data

In the 4th quarter of 2017, the average monthly gross wages and salaries in the country comprised 961 euros, and over the year they have grown by 7.5 %. Compared to other quarters, in the 4th quarter of 2017 the share of irregular bonuses and premiums in the total earnings was the highest – 8.0 % (5.0–6.3 % in other quarters).

Compared to the 4th quarter of 2016, in the 4th quarter of 2017 the highest rise in the average wages and salaries was recorded in private sector – of 8.5 %, in public sector it constituted 6.1 % and in general government sector 7.0 %.

Compared to the 3rd quarter of 2017, gross wages and salaries in the country grew by 3.2 %. The sharpest increase was registered in public and general government sectors – of 4.8 % and 4.7 %, respectively, while in private sector it constituted 2.3 %. 

In the 4th quarter of 2017, net wages and salaries comprised 700 euros, and, compared to the 4th quarter of 2016, they went up by 6.6 %.

Average monthly gross wages and salaries by sector; 2017
(in euros)

Period

Total in the country

Private sector

Public sector

of which

general government sector

1st quarter

884

879

897

847

2nd quarter

926

914

954

901

3rd quarter

932

922

954

912

4th quarter

961

843

1000

955

Year

926

915

951

904

Data on the 1st–3rd quarter are revised.

Changes in average monthly gross wages and salaries by sector; 2017
(as per cent, compared to the corresponding period of previous year)

Period

Total in the country

Private sector

Public sector

of which

general government sector

1st quarter

7.0

7.0

7.3

7.4

2nd quarter

8.6

8.9

8.2

9.3

3rd quarter

8.3

8.7

7.8

8.6

4th quarter

7.5

8.5

6.1

7.0

Year

7.9

8.3

7.4

8.1

Data on the 1st–3rd quarter are revised.

Changes in average monthly gross wages and salaries by sector; 2017
(as per cent, compared to the previous period)

Period

Total in the country

Private sector

Public sector

of which

general government sector

1st quarter

-1.1

1.1

-4.8

-5.1

2nd quarter

4.7

3.9

6.4

6.4

3rd quarter

0.6

0.9

0.0

1.2

4th quarter

3.2

2.3

4.8

4.7

Year

7.9

8.3

7.4

8.1

Data on the 1st–3rd quarter are revised.

 

More information on wages and salaries in Latvia is available in the CSB website section Wages and Salaries – Key Indicators. Data on wages and salaries in 2017 and 4th quarter of 2017 are published in the database section Wages and Salaries (Short term statistical data and Annual statistical data).

 

Methodological explanations

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 changes in the average monthly wages and salaries are calculated as not-rounded values, i.e., taking into account the value in euro cents.

When calculating the average monthly wages and salaries, the number of salaried employees is re-calculated into full-time units, thus eliminating the differences in salaries paid for different workloads ensuring comparability of indicators.

 

 

Media requests:
Communication Section
E-mail: media [at] csb [dot] gov [dot] lv
Phone:+371 67366621, +371 27880666

More information on data:
Lija Luste
Wage Statistics Section
E-mail: Lija [dot] Luste [at] csb [dot] gov [dot] lv
Phone: +371 67366917