Press Release

In 2020, the average salary before taxes was EUR 1 143 per month

The data of the Central Statistical Bureau (CSB) show that in 2020, the average monthly gross wage in the country for full-time work was EUR 1 143. Compared to 2019, the average monthly salary increased by EUR 66 or 6.2 %, but the salary for one hour worked before taxes - by 6.6 % (from EUR 7.47 to 7.97).

Average wages and salaries after taxes – EUR 841

Average net wages and salaries (calculated based on labour taxes applicable on workplace) comprised EUR 841 or 73.6 % of the gross salary. It increased by 6.1 % during the year.

The real increase in net wages and salaries, taking into account the rise in consumer prices, was 5.9 %.

Median wages and salaries comprised EUR 893

The median gross wage in 2020 was EUR 893. Compared to 2019 (EUR 832), it grew slightly faster than the arithmetic average salary - an increase of 7.3 %. In 2020, net median wages after taxes (net) constituted EUR 664 and rose by 5.9 % over the year.

Median is calculated based on the information available in statistical surveys and the State Revenue Service.

The median is the average in the middle of the ascending or descending order of wages of the employees, i.e., half of the wages are higher than the median and the other half are lower. As median, compared to the mean arithmetic earnings, is not influenced by extremely high or low wages and salaries, it reflects typical earnings more precisely.

Average wages and salaries are affected not only by increases or decreases in wages and salaries of employees, but also by structural changes in the labour market - companies that started and closed down during the year, changes in the number of employees and workloads. The impact of these factors is generally reflected in changes in the wage and salary fund and the number of full-time employees used to calculate average wages.

Due to the COVID-19 crisis in 2020, compared to last year, the number of employees in the country, recalculated as full-time, decreased by a total of 29.3 thousand. or 3.9 %. It was affected by redundancies, reductions in workloads and a decrease in the number of full-time employees due to downtime benefits. The decrease was observed in all sectors, except for information and communication services, real estate and health and social care, where there was an increase in number of employees.

The wage and salary fund in the country as a whole increased by EUR 200.8 million or 2.0 %, but its decrease was observed in transport and storage, accommodation and food service activities, administrative and support service activities, arts, entertainment and recreation, and other services.

A

Agriculture, forestry and fisheries

K

Financial and insurance activities

B

Mining and quarrying

L

Real estate activities

C

Manufacturing

M

Professional, scientific and technical activities

D

Electricity, gas, steam and air conditioning supply

N

Administrative and support service activities

E

Water supply; sewage, waste management and remediation activities

O

Public administration and defence; compulsory social security

F

Construction

P

Education

G

Wholesale and retail trade; repair of motor vehicles and motorcycles

Q

Human health and social work activities

H

Transportation and storage

R

Arts, entertainment and recreation

I

Accommodation and service activities

S

Other service activities

J

Information and communication

 

 

 

Average wages and salaries are affected not only by increases or decreases in wages and salaries of employees, but also by structural changes in the labour market - companies that started and closed down during the year, changes in the number of employees and workloads. The impact of these factors is generally reflected in changes in the wage bill and the number of full-time employees used to calculate average wages.

Changes of average monthly earnings by sectors

(EUR)

 

4Th quarter of 2019

2019

4Th quarter of 2020

2020

Changes( %)

4Th quarter of 2020

4Th quarter of 2019

2019 against 2020

Total

1,114

1,076

1,188

1,143

6.7

6.2

private sector

1,096

1,067

1,173

1,138

7.0

6.7

public sector *

1,156

1,103

1,223

1,156

5.8

4.9

general government sector

1,114

1,055

1,194

1,121

7.1

6.3

*Without foundations, associations, funds, and their commercial companies
 

In seven sectors, the average monthly wage is above the national average

In 2020, in seven sectors, the average monthly wage for full-time work was higher than the national average - in the financial and insurance sector, information and communication services, energy, public administration, professional, scientific and technical services, mining and quarrying, as well as in the health and social care sector.

Of these sectors, average wages and salaries increased faster during the year in professional, scientific and technical services - by 11.1 % and in mining and quarrying - by 9.7 %, where the wage and salary fund increased but the number of full-time employees decreased, as well as in the health and social care sector - by 9.6 %, where the wage and salary fund has grown significantly faster than the number of employees.

The lowest average wages and salaries in 2020 were in the accommodation and food service sector (EUR 726), where they fell by 5.3 % over the period of one year due to the COVID pandemic - in education (EUR  913), arts, entertainment and leisure (EUR 931) and other services (including activities of public, political and other organizations, repair of personal and household goods, dry-cleaning, hairdressing, beauty care, funeral and other services); (EUR 935).

During the year, the average salary also slightly decreased in the transport and storage sector - from EUR 1 071 to 1 068 or by 0.3 %.

Average monthly gross earnings and changes by sectors in 2020

Average monthly gross earnings and changes by sectors in 2020

  

In seven sectors, the average monthly wage is above the national average

In 2020, in seven sectors, the average monthly wage for full-time work was higher than the national average - in the financial and insurance sector, information and communication services, energy, public administration, professional, scientific and technical services, mining and quarrying, as well as in the health and social care sector.

Of these sectors, average wages and salaries increased faster during the year in professional, scientific and technical services - by 11.1 % and in mining and quarrying - by 9.7 %, where the wage bill increased but the number of full-time employees decreased, as well as in the health and social care sector - by 9.6 %, where the wage bill has grown significantly faster than the number of employees.

The lowest average wages and salaries in 2020 were in the accommodation and food service sector (EUR 726), where they fell by 5.3 % over the period of one year due to the COVID pandemic - in education (EUR  913), arts, entertainment and leisure (EUR 931) and other services (including activities of public, political and other organizations, repair of personal and household goods, dry-cleaning, hairdressing, beauty care, funeral and other services); (EUR 935).

During the year, the average salary also slightly decreased in the transport and storage sector - from EUR 1 071 to 1 068 or by 0.3 %.

 

In the fourth quarter, the average monthly salary before taxes was EUR 1 188

In the fourth quarter of 2020, the average monthly gross wage in the country was EUR 1 188, and it increased by 6.7 % during the year.

In the fourth quarter of 2020, compared to the same period of 2019, the average wage grew faster in the private sector - by 7.0 %, in the public sector - by 5.8 %, but in the general government sector - by 7.1 %.

Compared to the third quarter of 2020, gross wages and salaries in the country increased by 2.5 %. Faster growth was in the public sector - 5.4 %, in the private sector - 1.1 %. In the general government sector, average wages and salaries increased by 6.1 %. 

Net wages and salaries in the fourth quarter were EUR 871, and compared to the same period of 2019, they increased by 6.4 %. Compared to the third quarter of 2020, the increase was 2.2 %.

Salary for one hour worked – EUR 7.97

Gross wages and salaries per hour worked in 2020 were EUR 7.97 and over the year it increased by 6.6 % (in 2019 - EUR 7.47).

Total hourly labour costs, which include both wages and salaries and other labour-related costs of the employer, increased from EUR 9.47 to 10.06 or by 6.2 % during the year.

The increase in hourly wages and labour costs in 2020 was mainly due to a 4.2 % decline in hours worked over the year, while total labour costs increased by only 1.7 %. 

 

Methodological explanations

* 1-3 quarterly data updated. Data on the beginning of the year are revised each quarter in line with the routine data revisions defined in the CSB Revision Policy guidelines, as new economically active enterprises and institutions are added to the population of the statistical units surveyed, kinds and sectors of economic activities of enterprises are specified, additional or specified information from respondents or updated data from administrative data sources are received.

The data source used for wage and salary statistics is the sample survey of individual merchants, 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 CSB compiles information on average wages and salaries by regions according to the address of office of an enterprise or institution, or the main activity.

Changes in average monthly and hourly earnings and hourly labour costs are calculated from non-rounded values.

According to European Union legislation, when compiling data on labour costs, wages and salaries include wages and salaries in kind (goods and services provided by the employer to employees for free or at reduced prices, housing, mobile phones, transport, etc.) and do not include payment for days not worked due to illness, paid by the employer. Other labour costs include compulsory state social insurance contributions paid by the employer, employer's voluntary social insurance contributions (supplementary pension, health, life insurance contributions, etc.), employer benefits, gifts, payment of incapacity certificate A, severance pay, business risk related state duty.

 

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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