Higher growth rate of the average earnings observed

31.05.2017

Data of the Central Statistical Bureau (CSB) show that in the 1st quarter of 2017 the average gross wages and salaries in the country constituted 886 euros. Compared to the 1st quarter of 2016, the average wages and salaries increased by 59 euros or 7.2 %, showing a faster growth than in 2016 (5.0 %).

 

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

 

Q1 2016

Q4 2016

Q1 2017

Changes, %

Q1 2017 compared to

Q1 2016

Q1 2017 compared to

Q4 2016

Total

827

894

886

7.2

-0.9

Private sector

822

870

881

7.2

1.3

Public sector

836

943

897

7.3

-4.8

   of which:

 

 

 

 

 

General government sector

788

892

847

7.5

-5.1

In the 1st quarter of 2017, the average net wages and salaries constituted 648 euros, which is 6.4 % more than in the 1st 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 sharp increase in consumer prices registered in the 1st quarter of 2017(of 3.2 %, 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 3.1 %.

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

Compared to the 1st quarter of 2016, in the 1st quarter of this year wage and salary rise in public sector was slightly higher than in other sectors (7.3 %), increase in private sector constituted 7.2 % and that in general government sector 7.5 %.

In the 1st quarter of 2017, the average gross wages and salaries amounted to 881 euros in the private sector and to 897 euros in public sector, whereas in general government sector, which includes central and local government institutions, State Social Insurance Agency, as well as enterprises controlled and financed by the central and local government, the average gross wages and salaries amounted to 847 euros.

Compared to the 1st quarter of 2016, in the 1st quarter of 2017 the gross wage and salary fund increased by 8.1 % or 146.1 million euros, whereas the number of salaried workers in the country rose only by 0.9 % or 6.4 thousand (recalculated into full-time units).

Compared to the corresponding quarter of the previous year, in the 1st quarter of 2017 the increase in wages and salaries was recorded in all sectors, except for real estate activities (drop of 1.4 %).

The sharpest wage and salary rise was observed in education (10.3 %), mining and quarrying (9.7 %), trade (9.2 %, with the most notable growth in wholesale and trade and repair of motor vehicles and motorcycles), information and communication (8.6 %), agriculture, forestry and fishing (7.7 %, with the most significant increase in forestry and logging).

Increase in average wages and salaries in education, mining and quarrying as well as trade was due to the growth in wage and salary fund and decline in the number of full-time employees; in information and communication as well as agriculture, forestry and fishing sector the growth was recorded in both number of employees and wage and salary fund; in real estate activities, in tis turn, the number of full-time employees rose faster than wage and salary fund.

In the 1st quarter of 2017, the highest wages and salaries 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, mining and quarrying, 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.), 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), education, real estate activities, arts, entertainment and recreation.

Average monthly gross wages and salaries in Q1 2016 and Q1 2017 and changes thereof

 

Compared to the 1st quarter of 2016, in the 1st quarter of 2017 regional breakdown shows that rise in the average monthly gross wages and salaries in Vidzeme, Zemgale and Pierīga region – of 8.4 %, 8.0 % and 7.4 %, respectively, was faster than that recorded in the country as a whole. Smaller increase was observed in Kurzeme and Latvgale region – of 6.4 % and 6.7 %, respectively. The annual increase in Riga, where the highest wages and salaries were recorded in the 1st quarter of this year (1001 euros), constituted 7.1 %. The lowest average gross wages and salaries still were registered in Latgale region – 609 euros.

The data on the Baltic states show that in the 1st quarter of 2017 the highest average gross wages and salaries were observed in Estonia (1153 euros), followed by Latvia (886 euros) and Lithuania (818 euros).  Compared to the 1st quarter of the last year, wages and salaries have grown in all three Baltic countries. The sharpest rise was recorded in Lithuania (9.3 %), followed by Latvia (7.2 %) and Estonia (5.7 %). At the beginning of the year, only Lithuanian net wage and salary increase exceeded the rise of gross earnings, reaching 79 % of the wages and salaries before taxes. In the 1st quarter of 2017, Estonian average net wages and salaries constituted 81 % of the gross earnings, whereas Latvia has the lowest indicator – 73 %.

It should be noted that over the year also minimum wage has increased in all three countries: in Estonia from 430 euros in the 1st quarter of 2016 to 470 euros in the 1st quarter of this year or by 9,3 %, in Lithuania from 350 euros to 380 euros (8.6 %), and in Latvia from 370 euros to 380 euros (2.7 %).

 

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

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