The growth rate of average wages and salaries has remained low during the 3rd quarter

29.11.2016

Data of the Central Statistical Bureau (CSB) show that in the 3rd quarter of 2016 the average monthly gross wages and salaries in the country amounted to 847 euros. Compared to the 3rd quarter of 2015, average wages and salaries have grown by 18 euros or 2.2 %, indicating a lower annual increase than in the 2nd quarter of the present year (3.3 %).

Average monthly gross wages and salaries in the private sector accounted for 828 euros and for 885 euros in the public sector, while the average wages and salaries in the general government sector that includes state and local government institutions, State Social Insurance Agency and enterprises controlled and financed by the central and local governments amounted to 840 euros. Over the year, wages and salaries in the private sector grew at a faster pace than those in the public sector – 2.3 % and 1.9 %, respectively.

In the 3rd quarter of 2016, the average net wages and salaries in the country comprised 622 euros, having grown by 1.7 % in comparison to the 3rd quarter of the previous year. As the consumer prices increased by 0.2 %, real net wages and salaries grew by 1.5 %.

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

 

Q3

2015

Q1

2016

Q2

2016

Q3

2015

Changes,%

Q3 2016 compared to

Q3 2015

Q3 2016 compared to

Q2 2016

Total

829

832

838

847

2.2

1.1

Private sector

810

*830

*815

828

2.3

1.6

Public sector

868

*836

*881

885

1.9

0.4

   of which

 

 

 

 

 

 

General government sector

816

788

824

840

2.9

1.9

* Data are revised.
 
In the 3rd quarter of 2016, the largest average wages and salaries were recorded in the sector of financial and insurance activities, information and communication, and energy. In turn, the lowest average wages and salaries were observed in the sector of accommodation and food service activities and other service activities, as well as in the education sector.

Compared to the 3rd quarter of 2015, in the 3rd quarter of 2016 average monthly gross wages and salaries grew in all sectors except for professional, scientific and technical activities (a drop of 2.2 %), real estate activities (a drop of 1.7 %), transportation and storage (a drop of 1.5 %) and other service activities (a drop of 1.2 %). The sector of other service activities includes the activities of public, political and other membership organisations, repair of personal and household goods, as well as washing and dry-cleaning services, hairdressing and other beauty treatment, funeral and related activities and other service activities.  There was also a slight drop in the average wages and salaries in the energy sector (of 0.1 %).

The drop in the average wages and salaries in the sectors of professional, scientific and technical activities, transportation and storage, and energy were affected by a reduction in the volume of irregular bonuses and premiums, as well as an increase in the number of employees, which was more rapid than the increase in the wage and salary fund. The other mentioned sectors witnessed a drop in regular wages and salaries, as well as irregular bonuses, while the number of employees grew.

Of all the sectors that witnessed an increase in wages and salaries over the year, the greatest growth was recorded in the sectors of accommodation and food service activities (of 5.5 %), financial and insurance activities (of 5.0 %), and in agriculture (of 4.7 %).

Average monthly gross wages and salaries in the 3rd quarter of 2015 and of 2016 and changes thereof

  

Compared to the 3rd quarter of 2015, in the 3rd quarter of 2016 wages and salaries have grown in all Baltic states, however, Latvia indicated the lowest increase. Over the year, the average gross wages and salaries in Estonia and Lithuania grew by 7.1 % and 7.9 %, respectively. The highest gross wages and salaries in the 3rd quarter of 2016 were recorded in Estonia (1 119 euros), while the lowest – in Lithuania (793 euros). Latvian employees receive the lowest wages and salaries after the payment of taxes – in the 3rd quarter of the present year the average monthly net wages and salaries accounted for 73 % of the calculated gross wages and salaries. This respective ratio was 78 % in Lithuania and 81 % in Estonia.

Just as in Latvia, minimum wages have also increased in both neighbour states over the year. In Estonia the minimum wage increased from 390 to 430 euros starting with 1 January of the present year (an increase of 10.3 %), whereas in Lithuania it reached 380 euros on 1 July of the present year (an increase of 26.7 % in comparison to the minimum wage of 300 euros present on 1 January 2015). The minimum wage in Latvia increased from 360 to 370 euros on 1 January of the present year (by 2.8 %).

More information on wages and salaries in Latvia is available in the Wages and Salaries – Key Indicators section of the CSB website. Data on wages and salaries in 2015 and the 3rd quarter of 2016 are published in the Wages and Salaries section of the CSB database (short-term statistical data and annual statistical data).

Methodological explanations

Data source used for wage and salary statistics: the sample survey of individual merchants, commercial companies, state and local government institutions, foundations, associations and funds, as well as administrative data sources.

In calculations of average wages in public sector the CSB includes 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.

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

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 different workloads.

 

Media requests:
Beate Danusēviča
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