On wages and salaries in public sector in 2nd quarter of 2007

11.10.2007

In the 2nd quarter of this year monthly average gross wages and salaries were 463 lats, of which in state budgetary institutions – 556 lats, in local government budgetary institutions – 356 lats, and in state and local government commercial companies – 501 lat, according to the data of Central Statistical Bureau.

Compared to the 2nd quarter of previous year average monthly gross wages and salaries in state budgetary institutions has increased by 171 lat, in local government budgetary institutions by 86 lats, but in state and local government commercial companies - by 129 lats.

In the second quarter of this noticeable rise of wages and salaries was observed in all activities. In the state budgetary institutions the highest increase – by 189 lats, was observed in recreational, cultural and sporting activities, public administration and defence – by 187 lats, in education – by 133 lats, and in health and social work – by 121 lat; in local government budgetary institutions - in public administration and defence - by 115 lats, in health and social work – by 82 lats, in education by 78 lats, and in recreational, cultural and sporting activities – by 72 lats. In state and local government commercial companies – wages and salaries in public, social and personal activities1) increased by 156 lats, in transport, storage and communications – by 136 lats, in health and social work – by 129 lats, in industry – by 125 lats.

The highest wages and salaries in budgetary institutions had employees in public administration and defence, in government budget sector – 619 lats, but in local government budget sector – 472 lats.

In the second quarter of this year one of the highest Latvia’s wages and salaries had employees of the financial intermediation – 833 lats, of which stuff of the commercial banks – 966 lats. In these occupations the average wages and salaries were higher (35% and 56% respectively) than in average wages and salaries (619 lats) of the employed in the public administration and defence of the government budget sector.

Among the government budgetary institutions the highest wages and salaries were in the highest government direct administration institutions (excluding data on the institutions under ministries) – on average 1132 lats. Nevertheless, it should be mentioned that the share of jobs in the public sector is low and constitutes only 1.2% (3.9 thsd jobs). Moreover, the average wages and salaries differ among the ministries noticeably – ranging from 700 to 1600 lats per month.

Examining the average monthly wages and salaries of the 2nd quarter of this year in the Baltic States in breakdown by activities2), it should be concluded that in Latvia they are higher than in Lithuania, but lower than in Estonia. For example, in public administration and defence average salaries in Latvia were 822 euro, in Lithuania - 709 euro, but in Estonia - 959 euro. In all Baltic States wages and salaries in public administration and defence are higher then in education, as well as in health and social work. In education average salary in Latvia constituted 514 euro, in Lithuania 438 euro, in Estonia 732 euro3), in the health and social work in Latvia – 590 euro, in Lithuania – 511 euro, in Estonia – 753 euro. Similar situation is also in public, social and personal activities1), where wages and salaries are 496, 433 and 630 euros, respectively.

Average monthly wages and salaries in public sector
(in lats)

2nd quarter of 2006

1st quarter of 2007

2nd quarter of 2007

Number of occupied jobs in 2nd quarter of 2007, thsd

Share of occupied jobs in the public sector, %

Public sector- Total

318.0

100.0

Gross wages and salaries

338

405

463

Regular payments

298

375

403

Irregular payments

40

30

60

of which:

In government budgetary institutions

92.3

29.0

Gross wages and salaries

385

470

556

Regular payments

315

417

449

Irregular payments

70

53

107

Of which in highest government direct administration institutions

3.9

1.2

Gross wages and salaries

710

892

1132

Regular payments

513

749

806

Irregular payments

197

143

326

In local government budgetary institutions

123.8

39.0

Gross wages and salaries

270

323

356

Regular payments

250

314

329

Irregular payments

20

9

27

State and local government commercial companies

101.9

32.0

Gross wages and salaries

372

443

501

Regular payments

337

407

446

Irregular payments

35

36

55

Average monthly wages and salaries
by main kind of activity in state and local government budgetary institutions
(in lats)

In government budgetary institutions

In local government budgetary institutions

Gross wages and salaries

Number of occupied jobs in 2nd quarter of 2007, thsd

Gross wages and salaries

Number of occupied jobs in 2nd quarter of 2007, thsd

2nd quarter of 2006

2nd quarter of 2007

2nd quarter of 2006

2nd quarter of 2007

Total

385

556

92.3

270

356

123.8

Public administration and defence; compulsory social security

432

619

51.5

357

472

29.0

Education

343

476

23.0

251

329

70.7

Health and social work

264

385

6.1

270

352

9.3

Recreation, cultural and sporting activities

250

439

3.7

212

284

13.1

Average monthly wages and salaries
by main kind of activity in state and local government commercial companies
(in lats)

Gross wages and salaries

Number of occupied jobs in 2nd quarter of 2007, thsd

2nd quarter of 2006

2nd quarter of 2007

Total

372

501

101.9

Industry-total

425

550

11.8

Transport, storage and communication

391

527

33.8

Commercial services

291

379

12.5

Health and social work

323

452

29.1

Public, social and personal activities1)

321

477

9.0

________________
1) According to Classification of Economic Activities (NACE 1.1. red) public, social and personal activities include sewage and refuse disposal, sanitation and similar activities, recreational, cultural and sporting activities (motion picture and video activities, radio and television activities,other entertainment activities,news agency activities, library, archives, museums and other cultural activities, sporting activities), other service activities (washing and drycleaning of textile and fur products, hairdressing and other beauty treatment, funeral and related activities, physical well-being activities, other service activities n.e.c.)
2) As the data on all Baltic States are not available on public sector, in mentioned activities average monthly gross wages and salaries are shown in national economy totally.
3) Estonia, differently from other Baltic States, in the 2nd quarter of 2007 wages and salaries also include holiday grants, what regards also July and August. For this reason the regular wages and salaries are lower. In the 1st quarter of 2007, when teachers almost do not have holiday grants, it constituted 540 euro.

Explanations

  Public sector is state and local government commercial companies, as well as companies with state or local government part of capital 50% and more, foundations, associations and funds, and their commercial activities. Data on foundations, associations and funds and their commercial activities are not included in information.

   Regular gross wages and salaries are regular payments in money in every payment period (week, month), including holiday grant.

   Irregular gross wages and salaries are payments in money not paid in every payment period: Quarterly bonuses, bonuses for longer period of time, holiday bonuses, and bonuses with vacation, holiday grant, and compensation for unused vacation.

Prepared by the Wage Statistics Section
Tel 67366917
Lija Luste