Press Release

Average earnings have exceeded EUR 1000

Data of the Central Statistical Bureau (CSB) show that in the 2nd quarter of 2018, compared to the 2nd quarter of 2017, the average monthly gross wages and salaries grew by 8.4 % or EUR 78, reaching EUR 1004 for full-time work.  The growth rate registered in the 1st quarter of the year was faster – 8.6 %. Compared to the 1st quarter, in the 2nd quarter of 2018 gross wages and salaries increased by 4.6 % or EUR 44.

Over the year, the rise in wages and salaries was similar in both private and public sector

Annual rise of earnings was almost equal in both sectors – 8.4 % and 8.5 %, respectively. The average gross wages and salaries constituted EUR 991 in private sector and EUR 1035 in public sector, while in general government sector, which includes central and local government institutions, as well as enterprises controlled and financed by the central and local government, the average wages and salaries rose to EUR 984 or by 9.2 %.

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

 

Q2 2017

Q1 2018

Q2 2018

Changes in Q2 2018, as % compared to

Q2 2017

Q1 2018

Total

926

961

1004

8.4

4.6

private sector

914

957

991

8.4

3.5

public sector*

954

969

1035

8.5

6.8

general government sector

901

923

984

9.2

6.6

* Does not include foundations, associations, funds and their commercial companies.

 

Net wages and salaries constitute EUR 743

In the 2nd quarter of 2018, the average net wages and salaries (calculated based on the labour taxes applicable at workplace) constituted EUR 743. Compared to the previous quarter, net wages and salaries went up by 4.4 %. Over the year, the earnings increased by 10.0 %, showing 1.6 percentage points higher rise than that of wages and salaries before taxes.

Considering annual consumer price growth of 2.4 %, the real increase in net wages and salaries comprised 7.4 %.

Changes in consumer prices and average wages and salaries
(as %, compared to the corresponding period of previous year)

Chart – Changes in consumer prices and average wages and salaries

 

Sharpest wage rise recorded in human health and social care activities

Changes in the average wages and salaries are influenced not only by the rise of employee remuneration, but also structural changes on the labour market – enterprises that had started and stopped their business during the year, changes in the number of employees and workloads in various economic sectors, as well as state administrative measures in the fight against the shadow economy. The effects caused by the mentioned factors in general may be seen in the changes in the wage and salary fund and number of full-time employees, which are used in the average wage calculations.

In the 2nd quarter of 2018, compared to the 2nd quarter of 2017, gross wage and salary fund increased by 9.1 % or EUR 188.5 million, while the number of salaried workers, recalculated into full-time units, grew only by 0.6 % or 4.4 thousand.

In the 2nd quarter of the year, the sharpest rise in wages and salaries was recorded in human health and social work activities (of 15.2 %, with faster growth in human health activities), mining and quarrying (13.3 %), accommodation and food service activities (11.7 %, with the sharper rise in catering), agriculture, forestry and fishing (10.9 %, with faster growth in crop and animal production, hunting and related service activities, as well as forestry and logging), other service activities (10.5 %, with sharper rise in washing and (dry-)cleaning; hairdressing and other beauty treatment; funeral and related activities; and other personal service activities), and manufacturing (10.0 %).

Highest earnings in financial and insurance activities and lowest in accommodation and food service activities

In the 2nd quarter of 2018, the highest average wages and salaries for full-time work were registered in financial and insurance activities, information and communication, energy, public administration, mining and quarrying, professional, scientific and technical activities, water supply; sewerage, waste management and remediation activities, as well as transportation and storage. In other sectors, the average wages and salaries before taxes were below the national average.

The lowest wages and salaries, in turn, were observed in accommodation and food service activities, other service activities (that include 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, as well as arts, entertainment and recreation.

Average monthly gross wages and salaries in Q2 2017 and Q2 2018 and changes thereof

Chart – Average monthly gross wages and salaries in Q2 2017 and Q2 2018 and changes thereof

 

Lowest earnings still recorded in Latgale

Compared to the 2nd quarter of 2017, in the 2nd quarter of 2018 regional breakdown shows the sharpest rise in the average monthly gross wages and salaries in Kurzeme (of 11.4 %), Pierīga (9.5 %), and Latgale region (9.4 %). The annual rise in Riga, having the highest wages and salaries (EUR 1128), was the smallest among regions. Smaller increase was registered also in Zemgale (8.1 % annually) and Vidzeme regions (8.5 %).

The lowest average gross wages and salaries for full-time work still were observed in Latgale region – EUR 702, constituting 70 % of the national average.

Average monthly gross wages and salaries in Q2 2017 and Q2 2018 by region

Chart – Average monthly gross wages and salaries in Q2 2017 and Q2 2018 by region

Information on the average wages and salaries is broken down by region based on the office address of an enterprise or institution.

 

Estonia has higher earnings, while Lithuania sharper rise thereof

In the Baltic states, the highest monthly average gross wages and salaries in the 2nd quarter of 2018 were recorded in Estonia – EUR 1321, followed by Latvia with EUR 1004 and Lithuania with EUR 927. Compared to the 2nd quarter of the previous year, the average wages and salaries have increased in all Baltic states. The sharpest rise was recorded in Lithuania (of 10.5 %), followed by Latvia (8.4 %) and Estonia (6.4 %).

 

In 2017, median earnings constituted EUR 707

CSB started calculating median earnings by using information acquired via statistical surveys and administrative data of the State Revenue Service.

In 2017, median gross earnings constituted EUR 707 and median net earnings – EUR 516 (average earnings: gross – EUR 926 and net – EUR 676).

 

The data on wages and salaries in the 2nd quarter of 2018 are published in the database section Wages and Salaries (Short term statistical data and Annual statistical data).

 

Methodological explanations

Median is the central value (the midpoint of distribution) of observations arranged in an ascending or descending sequence.

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 ensuring comparability of indicators.

 

Media requests:
Communication Section
E-mail:
media@csb.gov.lv
Phone: +371 67366989, +371 27880666

More information on data:
Lija Luste
Wage Statistics Section
E-mail:
Lija.Luste@csb.gov.lv
Phone: +371 67366917

 

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