Analytics, Latvia, Wages

Monthly average gross wages and salaries (lats)

Due to the growth of basic allowance and tax relief on dependants, net wages and salaries increased more rapidly than gross wages and salaries. Compared to the 1^st quarter of previous year, net wages and salaries in the three months of this year increased by 29.7% and reached on average 330 lats.

Considering the consumer price growth that constituted 16.4%, the real increase of the wages and salaries during this period comprised 11.4%.

Gross wages and salaries witnessed more rapid growth in private sector – by 28.6%, but in public sector¹⁾ the increase constituted 27.2%.

Growth of monthly average gross wages and salaries over corresponding period of previous year in public and private sector (%)

In private sector monthly average wages and salaries still were lower than in public sector. In public sector in the 1st quarter of this year they were 516 lats. Compared to the first quarter of previous year, the increase is 110 lats. In private sector 424 lats and 94 lats, respectively.

It should be mentioned that, the difference between wages and salaries of private and public sectors is growing. If in the 1^st quarter of 2007 wages and salaries in the public sector were 76 lats higher than in private sector, then in the 1^st quarter of this year this difference constituted 92 lats.

If examining the gross wages and salaries in breakdown by kinds of economic activities, it may be concluded that, compared to the 1st quarter of previous year, in the 1st quarter of this year the most rapid increase of wages and salaries was in education – by 32.1% (from 327 to 432 lats), transport, storage and communication – by 31.4% (from 372 to 488 lats), commercial services – by 30.0% (from 378 to 491 lat), construction – by 28.7% (from 323 to 416 lats) and trade – by 28.0% (from 297 to 380 lats).

Compared to the 4^th quarter of previous year, in the 1^st quarter of this year gross wages and salaries in the country grew by 1.6%. In private sector the growth constituted 8.3%, but in public sector wages and salaries reduced by 8.6%. The decrease may be explained with the fact that, in the 4^th quarter annual and holiday bonuses are paid.

Among the Baltic States the highest gross wages and salaries in the 1^st quarter of this year, just like in all quarters of previous year, were in Estonia – 788 euro, but the lowest – in Estonia – 623 euro. Compared to the 1^st quarter of 2007, Latvia witnessed the highest increase – 28.1%, Lithuania – 23.8%, and Estonia – 19.5%. But compared to the 4^th quarter of 2007, the highest increase during the fist three months of this year was in Lithuania – 4.8%, in Latvia – 1.6%, and in Estonia – 0.5%.

Monthly average gross wages and salaries (euro)

More information on wages and salaries in the country may be found in the data base of the Central Statistical Bureau.

___________________________

¹⁾ 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.