Average earnings have exceeded 900 euros

28.08.2017

Data of the Central Statistical Bureau (CSB) show that in the 2nd quarter of 2017 the average gross wages and salaries for full-time work constituted 927 euros. Compared to the 2nd quarter of 2016, the average wages and salaries increased by 74 euros or 8.7 %.

Compared to the previous quarter, in the 2nd quarter of 2016 the increase in the gross wages and salaries comprised 4.8 % (42.7 euros).

Compared to the 2nd quarter of 2016, in the 2nd quarter of 2017 gross wages and salaries fund rose by 9.1 % or 173.2 million euros, whereas the number of salaried workers grew only by 0.3 % or 2.5 thousand (recalculated into full-time units).

 

Changes in average monthly gross wages and salaries by sector, euros

 

Q2 2016

Q1 2017

Q2 2017

Changes, %

Q2 2017 compared to

Q2 2016

Q2 2017 compared to

Q1 2017

Total

853

885*

927

8.7

4.8

Private sector

839

879*

915

9.1

4.1

Public sector

882

897

954

8.2

6.3

   of which:

 

 

 

 

 

general government sector

824

847

901

9.3

6.4

 

In the 2nd quarter of 2017, the average net wages and salaries constituted 676 euros, which was 7.8 % more than in the 2nd quarter of 2016. In general, the average net wages and salaries rose slower than the earnings before taxes.

As of 1 January 2017, the minimum untaxed minimum applied on the workplace was reduced from 75 euros to 60 euros, and minimum national wage rose from 370 euros to 380 euros or by 2.7 %.

The increase in consumer prices registered in the 2nd quarter of 2017 (of 3.1 %, compared to the corresponding period of the previous year) had downward effect on the purchasing power of the employed population – real wages and salaries grew only by 4.6 %.

Changes in consumer prices and average wages and salaries compared to the corresponding period of the previous year, per cent

Compared to the 2nd quarter of 2016, in the 2nd quarter of this year the rise of wages and salaries in private sector constituted 9.1 %, in public sector 8.2 % and in general government sector 9.3 %.

In the 2nd quarter of 2017, the average gross wages and salaries amounted to 915 euros in the private sector and to 954 euros in public sector, whereas in general government sector, which includes central and local government institutions, as well as enterprises controlled and financed by the central and local government, the average gross wages and salaries amounted to 901 euros.

Compared to the corresponding quarter of the previous year, in the 2nd quarter of 2017 the increase in wages and salaries was recorded in all sectors. The sharpest rise in average wages and salaries 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.) – of 13.5 % (with the sharpest increase in activities of head offices; management consultancy activities, as well as  advertising and market research), education – of 13.0 %, electricity, gas, steam, and air conditioning supply – of 11.1 %, agriculture, forestry and fishing – of 11.0 %, as well as trade – of 10.4 % (with the most notable growth in wholesale and trade and repair of motor vehicles and motorcycles, as well as other wholesale).

In all mentioned highest-level sectors of the classification of economic activities, except for electricity, gas, steam, and air conditioning supply, the rapid increase in the average wages and salaries was influenced by the rise in the wage and salary fund and decline in the number of full-time employees. Whereas increase in the average earnings in electricity, gas, steam, and air conditioning supply was significantly affected by irregular premiums and bonuses (basic salary and regular premiums grew by 6.2 % during the year).

In the 2nd quarter of 2017, the highest wages and salaries for full-time work were registered in financial and insurance activities, information and communication and energy sectors. Wages and salaries exceeding the national average indicator were also recorded in public administration, professional, scientific and technical activities, mining and quarrying, water supply; sewerage, waste management and remediation activities, as well as transportation and storage. 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), real estate activities, education, arts, entertainment and recreation.

Average monthly gross wages and salaries in Q2 2016 and Q2 2017 and changes thereof

Compared to the 2nd quarter of 2016, in the 2nd quarter of 2017 regional breakdown shows that the average monthly gross wages and salaries in all regions rose faster than the national average, except for Riga. Vidzeme and Zemgale indicate the sharpest annual rise – of 10.5 % and 10.1 %, respectively. In the 2nd quarter, the annual increase in Riga having the highest wages and salaries (1038 euros) constituted 7.9 %. Lower average gross wages and salaries still were observed in Latgale region – 643 euros for full-time work, followed by Vidzeme with 740 euros, Kurzeme with 774 euros, Zemgale with 784 euros, whereas indicator registered in Pierīga region amounted to 888 euros.

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 are published in the database section Wages and Salaries (Short term statistical data and Annual statistical data).

 

Methodological explanations

* Data are revised.

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.

 

 

 

Media requests:
Kalvis Pētersons
Information and Communication Section
E-mail: media [at] csb [dot] gov [dot] lv
Phone: +371 67366924, +371 27880666
www.csb.gov.lv
www.twitter.com/CSB_Latvia
www.facebook.com/csplatvija

 

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