28.02.2014 Average wages and salaries are rising accordingly forecasts

28.02.2014

Already for the third year in a row average wages and salaries are growing evenly and since 2012 have exceeded level of pre-crisis average indicator. Latest data compiled by the Central Statistical Bureau of Latvia show that in 2013 average monthly gross wages and salaries in Latvia, compared to 2012, increased by 4.6% from 685 euros (481 lat) to 716 euros (503 lats).

Annual changes in average monthly gross wages and salaries

In private sector wages and salaries rose slightly faster – by 4.7% annually, but in public sector – by 4.6%. In 2013 average monthly gross wages and salaries in public sector comprised 766 euros (538 lats), but in private – 689 euros (484 lats).  In general government sector wages and salaries grew by 5.9% from 663 euros (466 lats) to 701 euro (493 lats).

Changes in average monthly wages and salaries by sector

 

currency

2012

2012

4th qtr

2013

2013

4th qtr

Changes, %

2013

over

2012

4th qtr 2013 over

4th qtr 2012

4th qtr 2013 over

3rd qtr 2013

Total in the country

EUR

685

703

716

737

4.6

4.8

2.0

LVL

481

494

503

518

Private sector

EUR

658

674

689

707

4.7

4.8

1.8

LVL

463

474

484

497

Public sector

EUR

732

756

766

794

4.6

5.0

2.4

LVL

515

531

538

558

of which:

 

 

 

 

 

 

 

 

General government sector

EUR

663

683

701

725

5.9

6.2

1.4

LVL

466

480

493

510

In 2013 average monthly net wages and salaries comprised 516 euros (362 lats) or 72% of wages and salaries before taxes; moreover, over a year their share has risen by one percentage point as since 1 January 2013 personal income tax rate reduced from 25% to 24% and starting with 1 July 2013 tax relief for dependents increased from 100 euros (70 lats) to 114 euros (80 lats).

In the 4th quarter of 2013, the average monthly gross wages and salaries in the country comprised by 737 euros (518 lats), and, in comparison with the corresponding period of 2012, wages and salaries grew by 4.8%. Increase in the public sector constituted 5.0%, of which 6.2% in general government sector, and growth in private sector comprised 4.8%.

In the 4th quarter net wages and salaries comprised 530 euros (373 lats), and, in comparison with the 4th quarter of 2012, increase constituted 5.9%.

Average monthly gross wages and salaries by sector (euros)

Similar as a year ago, in 2013 the highest level of average wages and salaries was in financial and insurance activities sector, information and communication  services, energy sector and public administration. But the lowest average wages and salaries were observed in accommodation, food and other service activities sectors, education, real estate activities sector, trade.

In 2013 average gross wages and salaries rose more rapidly in mining and quarrying – by 13.3%, in arts, entertainment and recreation – by 12.7%, in public administration - by 9.9%, in financial insurance activities – by 7.1%, in construction –  by 6.8% and in trade – by 6.6%. In the 4th quarter, in comparison to the same period of 2012, more rapid increase of average wages and salaries was exactly in the sectors mentioned.

Average monthly gross wages and salaries by economic activity in 2012 and 2013

In mining and quarrying number of employees recalculated at full-time units diminished, while wage and salary fund grew rapidly. Arts, entertainment and recreation was mainly affected by the rise in wages and salaries earned in gambling and betting activities. Wages and salaries in public administration and trade have increased more because of the rise in both regular wages and irregular premiums (irregular bonuses include also compensations for unused holidays, holiday allowance). But in financial and insurance activities sector along with the growth of regular wages and irregular premiums number of employees has reduced last year.

Accordingly additional financing granted for rising wages and salaries in public administration in 2013 wages were increased to court and prosecutor's office employees, as well as to policemen, frontier guards, firemen and officials from the Latvian Prison Administration who have their subsistence portion compensation integrated in their remuneration. Additional financing was also granted for ensuring subsistence portion compensation of soldiers.

Average monthly gross wages and salaries by main kind of economic activity

 

2013

4th qtr 2013

Changes, %

EUR

LVL

EUR

LVL

2013

over

2012

4th qtr 2013 over

4th qtr 2012

4th qtr 2013 over

3rd qtr 2013

Total in the country

716

503

737

518

4.6

4.8

2.0

Agriculture, forestry and fishing

675

474

700

492

4.8

5.1

2.5

Mining and quarrying

827

581

890

625

13.3

15.5

3.0

Manufacturing

659

463

679

477

4.0

3.9

1.4

Electricity, gas, steam and air conditioning supply

1006

707

989

695

0.9

-2.2

-10.9

Water supply; sewerage, waste management and remediation activities

710

499

737

518

0.2

-0.5

4.7

Construction

678

476

702

493

6.8

7.8

2.3

Wholesale and retail trade, repair of motor vehicles and motorcycles

621

436

641

450

6.6

7.2

2.7

Transport and storage

776

545

810

570

0.5

2.1

5.3

Accommodation and food service activities

455

320

454

319

2.5

3.4

-1.5

Information and communication

1158

814

1175

826

3.2

1.4

2.7

Financial and insurance activities

1531

1076

1526

1072

7.1

7.4

0.7

Real estate activities

609

428

615

432

3.3

2.0

-0.4

Professional, scientific and technical activities

856

602

881

619

-0.1

-1.9

4.8

Administrative and support service activities

640

450

665

467

3.0

2.9

2.6

Public administration and defence; compulsory social security

896

630

944

664

9.9

11.7

3.4

Education

602

423

617

433

4.1

3.9

0.4

Human health and social work activities

666

468

683

480

3.9

3.5

2.0

Arts, entertainment and recreation

637

448

663

466

12.7

14.4

3.5

Other service activities

594

417

607

427

3.9

3.4

0.9

The compiled statistical information shows that in the 4th quarter of 2013, as compared to the 4th quarter of 2012, average gross wages and salaries both in Latvia and Lithuania increased similar – by 4.8% (in Latvia from 703 to 737 euros, in Lithuania – from 646 to 678 euros). But in Estonia over this period of time wages and salaries rose faster – by 7.6% (from 916 to 986 euros).

Changes in average monthly gross wages and salaries in the Baltic States
(% over corresponding period of previous year)

Still average net wages and salaries in Latvia are the lowest – 72% of average wage before taxes. In Lithuania this indicator is 77%, but in Estonia – 80%.

More information on wages and salaries in Latvia is available in the CSB database.

___________________

Explanations.

Data source: sample survey of individual merchants, commercial companies, State and local government institutions, foundations, associations and funds as well as administrative data sources.

Public sector is central and local government institutions and commercial companies, commercial companies with central or local government capital participation 50% and over, as well as foundations, associations and funds, and their commercial companies. Data on foundations, associations and funds and their commercial activities are not included in this information.

According to the European System of Accounts the general government sector includes central and local government institutions, the social security fund, enterprises controlled and financed by the central and local governments.

Changes of average monthly wages and salaries are calculated as rounded values, i.e., considering the value in eurocents/santims.

When calculating 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 various workloads.

Data were recalculated into euro in line with fixed exchange rate 1 EUR = 0.702804 LVL.

More information:
Lija Luste,
Wage Statistics Section

Phone: +371 67366917