Analytics, Baltic, Good for Business, Latvia, Statistics, Wages

In April 2020, compared to April 2019, the average gross monthly wages and salaries increased by 3.6%, reaching EUR 1 113. Annual growth rate in May was the lowest – 2.5% (EUR 1 105), but in June it rose to 5.6 % (EUR 1 134).

Compared to the 1^st quarter of 2020, in the 2^nd quarter of 2020 gross wages and salaries increased by 1.6%.

Average wages and salaries after taxes – EUR 824

Average net wages and salaries (calculated based on labour taxes applicable on workplace) comprised EUR 824. Over the year, it rose by 3.9%, but, as compared to the 1^st quarter of 2020, – by 1.5%.

Considering the consumer price growth, the real increase of the wages and salaries comprised 2.0%.

Median wages and salaries comprised EUR 878

Identical annual increase in public and private sectors

In the 2^nd quarter of 2020, average gross wages and salaries in private sector amounted to EUR 1 108, but in public sector – EUR 30 more (EUR 1 138). Both in public and private sectors average gross monthly wages and salaries before taxes increased the same – by 3.8%. General government sector, which includes central and local government institutions, as well as enterprises controlled and financed by the central and local government, average wages and salaries increased to EUR 1 105 or 6.2%.

As compared to the 1^st quarter of 2020, in private sector average gross wages and salaries rose by 0.7%, in public sector – by 3.1%, but in general government sector – by 4.1%.

Changes of average monthly earnings by sectors
(EUR)

Changes in the average wages and salaries are influenced not only by the rise or drop in employee remuneration and income-related changes in taxes, but also structural changes of the labour market – enterprises that had started and stopped their business during the year, changes in the number of employees and workloads. 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.

Affected by COVID-19 crisis, number of salaried workers, recalculated into full-time units, reduced more rapidly than gross wage and salary fund – by 7.0% or 53.1 thousand. Annual changes of gross wage and salary fund comprised 3.3% or – drop of EUR 82.2 mln.

Drop of 16.5% in accommodation and food service activities

In the 2^nd quarter of 2020, compared to the 2^nd quarter of 2019, average wages and salaries in accommodation and food service activities fell by 16.5% (in April – by 21.4%, in May – by 20.2%, but in June – by 10.2%), but in transportation and storage sector – by 5.1% (in April – by 7.1%, in May – by 6.5%, but in June – by 1.6%). Average wages and salaries during a year have also slightly reduced in real estate sector – by 1.5% and in arts, recreation and entertainment sector – by 1.0%.

In the 2^nd quarter of this year, compared to the 2^nd quarter of 2019, average wages and salaries increased more rapidly in other service activities (that includes 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) – by 14.3%, where the number of full-time units reduced the most (-20.2%), while wage and salary fund dropped by 8.8%.

The largest average wages and salaries in financial and insurance activities

In the 2^nd quarter of 2020, average monthly gross wages and salaries for full-time work was larger than that of average indicator in the country (EUR 1 118) in financial and insurance activities (EUR 2 160), information and communication (EUR 1 813), energy (EUR 1 496), public administration (EUR 1 356), professional, scientific and technical activities (EUR 1 313), mining and quarrying (EUR 1 227), as well as human health and social work activities (EUR 1 156) and water supply, sewerage, waste management and remediation activities (EUR 1 130).

The smallest average wages and salaries were registered in accommodation and food service activities (EUR 646), arts, entertainment and recreation (EUR 894), and education (EUR 895).

Average monthly earnings and changes thereof by economic activity; Q2 2019 and Q2 2020

Sharpest rise in earnings recorded in Latgale region

Compared to the 2^nd quarter of 2019, in the 2^nd quarter of 2020 out of all regions in Latvia average gross monthly wages and salaries grew faster in Latgale region – by 5.3% and Pierīga – by 4.9%. In Riga and other regions annual changes of average wages and salaries were similar – from 3.4 to 3.9%. In the 2^nd quarter of this year the average monthly gross wages and salaries in Riga were the largest – EUR 1 248 for full-time work, but the smallest – in Latgale (EUR 786).

Average monthly gross wages and salaries in Q2 2019 and Q2 2020 by region

The largest average gross wages and salaries in Estonia, the largest increase in Lithuania

In the 2^nd quarter of 2020 the largest average gross wages and salaries in the Baltic countries were registered in Estonia – EUR 1 433 for full-time work, in Lithuania – EUR 1 399, but in Latvia – EUR 1 118.

As compared to the 2^nd quarter of 2019, in Estonia average wages and salaries increased 1.0%, in Latvia – by 3.9%, but in Lithuania – by 8.5%.