Wage and salary increase slowed down in 2016

27.02.2017

Data of the Central Statistical Bureau (CSB) show that in 2016 the average monthly gross wages and salaries in the country amounted to 859 euros. Compared to 2015 when annual increase constituted 6.8%, in 2016 smaller rise in the average wages and salaries was recorded – 41 euros or 5.0.

Average monthly gross wages and salaries and changes thereof

In 2016, the average net wages and salaries amounted to 631 euros or 73.5 % of the gross wages and salaries; over the year the net wages and salaries grew slower than the gross wages and salaries – by 4.7 %.

Increase in the minimum wage from 360 euros to 370 euros or by 2.8 % as of 1 January 2016 did not have significant influence on the average wages and salaries.

In 2016, as the consumer prices went up by 0.1 %, the real net wages and salaries rose by 4.6 %.

In 2016, the average gross wages and salaries amounted to 845 euros in the private sector and to 886 euros in public sector, whereas in general government sector that 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 836 euros.  The most notable annual rise was observed in the private sector – 5.8 %, increase in the public sector constituted 3.7 % and in general government sector 5.0 %.

Compared to 2015, in 2016 the gross wage and salary fund increased by 5.8 % or 418.5 million euros, whereas the number of salaried workers in the country rose only by 0.7 % or 5.3 thousand (recalculated into full-time units).

In 2016, the sharpest wage and salary increase was observed in the sectors with low remuneration – other service activities (of 8.5 %) and accommodation and food service activities (of 7.1 %). The annual rise of wages and salaries in activities of membership organisations classified under the other service activities sector amounted to 10.7 %, while in other sector activities – repair of computers and personal and household goods and other personal service activities (e.g., washing and (dry-)cleaning of textile and fur products, hairdressing and other beauty treatment, funeral and related activities) – the increase constituted approximately 5 %.

Sharp increase was recorded also in administrative and support service activities (of 7.3 %) with the most notable growth in employment activities as well as office administrative, office support and other business support activities.

In 2016, the smallest wage and salary rise was recorded in professional, scientific and technical activities as well as in transportation and storage.

In 2016, the highest wages and salaries were observed in financial and insurance activities, information and communication, energy sector, public administration and defence; compulsory social security, as well as mining and quarrying.

Average monthly gross wages and salaries in 20152016 and changes thereof

  

Quarterly data

In the 4th quarter of 2016, the average monthly gross wages and salaries in the country amounted to 894 euros, and the annual increase constituted 5.9 %.Compared to the other quarters of 2016, the 4th quarter indicates the highest increase of irregular bonuses and premiums, whereas annual rise in the regular wages and salaries constitutes only 5.5 %.

Compared to the 4th quarter of 2015, in the 4th quarter of 2016 wages and salaries in the private sector grew by 5.6 %, in public sector by 6.6 % and in general government sector by 9.1 %.

Compared to the 3rd quarter of 2016, the gross wages and salaries in the country went up by 3.9 %. Wages and salaries in the private sector increased by 2.6 %, in public sector by 6.5 % and in general government sector by 6.2 %.

In the 4th quarter, the net wages and salaries amounted to 657 euros, constituting a rise of 5.6 %, compared to the 4th quarter of 2015.

Average monthly gross wages and salaries in 2016 and changes thereof by sector

Quarter

Total in the country

In private sector

In public sector

of which

general government sector

Euros

I

827*

822*

836

788

II

853*

839*

882*

824

III

860*

848*

885

840

IV

894

870

943

892

I-IV

859

845

886

836

Changes, compared to the corresponding period of the previous year, %

I

5.2*

6.3*

3.4

4.1

II

5.1*

6.5*

2.7

3.5

III

3.8*

4.7*

1.9

3.0*

IV

5.9

5.6

6.6

9.1

I-IV

5.0

5.8

3.7

5.0

Changes, compared to the previous period, %

I

-2.0*

-0.2*

-5.4*

-3.6

II

3.2*

2.0*

5.4

4.6

III

0.9*

1.1*

0.4

1.9

IV

3.9

2.6

6.5

6.2

 

* Data are revised.

The data starting from that at the beginning of the year were revised based on the planned data revisions included under the CSB Revision Policy Guidelines, by including new economically active enterprises and institutions in the population of the statistical units, specifying economic activities and sectors of the enterprises, receiving additional or revised information from respondents, as well as receiving the latest data from the administrative data sources.

In 2016, recalculation of the wage and salary statistics starting from that at the beginning of the year was affected also by the changes in and revision of the methodology used for the recalculation of the employee number into the full-time units in micro and small private sector enterprises, making greater use of the administrative data aimed at reducing respondent burden.

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 2016 and 4th quarter of 2016 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 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:
Sanda Rieksta
Information and Communication Section
E-mail: media [at] csb [dot] gov [dot] lv
Phone.: 67366621, 27880666
www.csb.gov.lv
www.twitter.com/CSP_Latvija
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