Wages fund has grown much faster than the number of salaried employees

30.05.2014

Latest data compiled by the Central Statistical Bureau of Latvia show that in the 1st quarter of 2014 average monthly gross wages and salaries in Latvia, compared to the 1st quarter of 2013, increased by 7.7% from 689 euros to 742 euros. During this period of time gross wages fund in the country on average rose by 9.2%, while the number of salaried employees recalculated at full-time units, which is applied for calculation of average wages and salaries, – only by 1.4%.

In private sector wages and salaries rose slightly faster – by 8.7% annually, but in public sector – by 6.1%. In the 1st quarter of 2014 average gross wages and salaries in public sector comprised 770 euros, but in private – 727 euros. In general government sector wages and salaries grew by 6.5% from 668 euros to 711 euros.

Changes in average monthly gross wages and salaries by sector (euros)

 

2013

1st qtr

2013

4th qtr

2014

1st qtr

Changes, %

1st qtr 2014 over

1st qtr 2013

1st qtr 2014 over

4th qtr 2013

Total in the country

689

737

742

7.7

0.7

Private sector

668

707

727

8.7

2.8

Public sector

725

794

770

6.1

-3.1

Of which:

 

 

 

 

 

General government sector

668

725

711

6.5

-1.9

In the 1st quarter of 2014 average monthly net wages and salaries comprised 544 euros, and over a year they rose more rapidly than wages and salaries before taxes – increase of 9.5%. It can be explained with the decrease of employee social security contribution rate from 11.0% to 10.5%, as well as with the increase of non-taxable amount of personal income tax (non-taxable minimum and deduction for dependents) from January 1 of this year.

It must be noted that from 1 January 2014 also national minimum wages have changed – from 285 to 320 euros or by 12.5%, which affected changes in average wages and salaries.

Average monthly gross wages and salaries by sector (euros)

Data source: Central Statistical Bureau of Latvia

Similar as a year ago, in the 1st quarter of 2014 the highest level of average wages and salaries was in financial and insurance activities sector, information and communication  services, energy sector and public administration. But the lowest average wages and salaries were observed in accommodation, food and other service activities sectors, education, art, entertainment and recreation sectors and trade.

In the 1st quarter of 2014, compared to the same period of the previous year, average gross wages and salaries rose more rapidly in financial and insurance activities – by 16.6%, in real estate activities – by 10.9% and in agriculture, forestry and fishing – by 10.2%.

Both in financial and insurance activities and in real estate activities number of employees recalculated at full-time units diminished, while wage and salary fund grew rapidly. Over a year the largest decrease in the number of salaried employees was also observed in manufacturing and transportation and storage sectors. Rise of average wages and salaries in agriculture, forestry and fishing was affected by the increase of wage and salary fund. 

Average monthly gross wages and salaries by economic activity in the 1st quarter of 2013 and 2014

Data source: Central Statistical Bureau of Latvia

Average monthly gross wages and salaries by economic activity (euros)

 

1st qtr 2013

4th qtr 2013

1st qtr 2014

Changes, %

1st qtr 2014 over

1st qtr 2013

1st qtr 2014 over

4th qtr 2013

Total in the country

689

737

742

7.7

0.7

Agriculture, forestry and fishing

642

700

708

10.2

1.1

Mining and quarrying

757

890

817

7.8

-8.2

Manufacturing

629

679

678

7.8

-0.1

Electricity, gas, steam, and air conditioning supply

911

989

965

5.9

-2.5

Water supply; sewerage, waste management and remediation activities

667

737

693

3.9

-6.0

Construction

649

702

707

8.9

0.8

Wholesale and retail trade; repair of motor vehicles and motorcycles

601

641

650

8.1

1.4

Transport and storage

730

810

781

7.0

-3.6

Accommodation and food service activities

445

454

479

7.8

5.6

Information and communication

1177

1175

1253

6.4

6.6

Financial and insurance activities

1521

1526

1773

16.6

16.2

Real estate activities

592

615

657

10.9

6.8

Professional, scientific and technical activities

838

881

873

4.2

-0.9

Administrative and support service activities

607

665

666

9.7

0.1

Public administration and defence; compulsory social security

840

944

914

8.9

-3.2

Education

583

617

612

4.9

-0.8

Human health and social work activities

638

683

678

6.3

-0.7

Arts, entertainment and recreation

607

663

621

2.4

-6.3

Other service activities

573

607

612

6.8

0.8

The compiled statistical information shows that in the 1st quarter of 2014 the largest monthly gross wages and salaries among the Baltic States were in Estonia – 966 euros, but the smallest in Lithuania – 671 euro. As compared to the 1st quarter of the previous year wages have risen similarly both in Latvia and in Estonia – by 7.7% and 7.3%, respectively, moreover, from 1 January of this year minimum wages were increased in both countries – in Latvia from 285 to 320 euros or by 12.5%, in Estonia – from 320 to 355 euros (10.9%). In Lithuania over a year wages have grown by 3.7%.

 

More information on wages and salaries in Latvia is available in the CSB database.

___________________

Explanations.

Data source: sample survey of individual merchants, commercial companies, State and local government institutions, foundations, associations and funds as well as administrative data sources.

Public sector is central and local government institutions and their commercial companies, companies with central or local government capital participation 50% and over, as well as foundations, associations, funds, and their commercial companies. Data on foundations, associations and funds and their commercial activities are not included in information.

According to the European System of Accounts the general government sector includes central and local government institutions, the social security fund, enterprises controlled and financed by the central and local governments.

Changes of average monthly wages and salaries are calculated as rounded values, i.e., considering the value in cents/santims.

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 various workloads.

 

More information:
Lija Luste
Wage Statistics Section
Tel. +371 67366917