Average gross earnings EUR 1 384 in the 3rd quarter01.12.2022

Data of the Central Statistical Bureau of Latvia (CSB) show that in the 3^rd quarter of 2022 average gross wages and salaries for full-time work amounted to EUR 1 384. Compared to the 3^rd quarter of 2021, average monthly earnings grew by EUR 82 or 6.3 %. Hourly earnings before taxes constituted EUR 9.08 and rose by 5.6 % over the year.

In the 3^rd quarter of 2022, compared to the 2^nd quarter, average monthly gross earnings went up by 1.6 % and hourly earnings fell by 1.3 %.

Average monthly earnings after taxes EUR 1 013

Average net wages and salaries (calculated based on the labour taxes applicable in work) comprised EUR 1 013 or 73.2 % of gross earnings. Over the year net earnings grew slower than gross earnings - by 6.0 %. However, considering rise in the consumer prices, net earnings fell by 12.9 % pointing to a sharp decline in the purchasing power of salaried workers. Moreover, the drop may be observed for the third consecutive quarter.

Median monthly earnings EUR 1 106

In the 3^rd quarter of 2022, median gross wages and salaries for full-time work amounted to EUR 1 106, while net (after taxes) to EUR 830. Compared to the 3^rd quarter of 2021, median gross earnings grew by 8.4 % and net by 9.0 %.

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

Median is an average in the middle of the ascending or descending order of wages of workers, 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.

Sharper annual upturn in public sector

In the 3^rd quarter of 2022 average monthly gross wages and salaries in private sector comprised EUR 1 393, and over the year they have grown by 6.1 %. Average earnings in public sector amounted to EUR 1 372, showing higher annual growth rate than in public sector - 6.6 %. Average earnings in general government sector, which includes central and local government institutions as well as enterprises controlled and financed by the central and local government, went up to EUR 1 336 or by 6.1 %.

Compared to the 2^nd quarter of 2022, average earnings in public sector fell by 0.6 %, of which by 0.7 % in general government sector, while in private sector they increased by 2.6 %.

Change in average monthly earnings by sector

* Excluding foundations, associations, funds and commercial companies thereof.

Highest-paying economic activity ranking remains unchanged

In the 3^rd quarter of 2022 average gross monthly wages and salaries for full-time work above the national average were recorded in financial and insurance activities (EUR 2 406), information and communication (EUR 2 301), professional, scientific and technical activities (EUR 1 784), energy sector (EUR 1 669), mining and quarrying (EUR 1 645), public administration and defence (EUR 1 606), as well as human health and social work activities (EUR 1 564).

The lowest average gross earnings were observed in accommodation and food service activities (EUR 916).

Change in average wages and salaries is influenced not only by the rise or decline of employee remuneration but also structural changes of the labour market - enterprises that have started and stopped their business during the year, changes in the number of employees and workloads that were also affected by government restrictions imposed and support measures taken due to the COVID-19 pandemic.

The effects caused by the mentioned factors in general are reflected as change in the wage and salary fund and number of full-time employees, which are used in the average wage calculations.

In the 3^rd quarter of 2022, compared to the 3^rd quarter of previous year, national wage and salary fund increased by 9.5 % or EUR 270.4 million, while number of salaried workers, recalculated into full-time units, by 22.4 thousand people or 3.1 %.

The sharpest rise in the average earnings was registered in mining and quarrying (of 13.5 %), water supply, sewerage, waste management, and remediation activities (11.7 %), transportation and storage (10.6 %), agriculture, forestry and fishing (9.5 %), as well as energy sector (9.3 %).

Greater earnings upturn in Pierīga and Vidzeme

In the 3^rd quarter of 2022, compared to the 3^rd quarter of 2021, the sharpest rise in average earnings before taxes was recorded in Pierīga (of 7.8 %) and Vidzeme (7.4 %). The highest average gross earnings for full-time work were observed in Riga (EUR 1 542), whereas the lowest in Latgale (EUR 975, which is 37 % fewer than in the capital).

Hourly earnings EUR 9.08

In the 3^rd quarter of 2022 gross hourly earnings amounted to EUR 9.08, and over the year they grew by 5.6 % (from EUR 8.59 in the 3^rd quarter of 2021).

Over the year hourly labour costs (which include wages and salaries as well as other labour-related expenses of the employer) rose from EUR 10.84 to EUR 11.41 or by 5.3 %, which was due to the increase in the total labour costs and hours worked - of 9.0 % and 3.5 %, respectively.

Greatest increase among Baltic countries in Lithuania

In the 3^rd quarter of 2022 average gross earnings for full-time work amounted to EUR 1 799 in Lithuania, EUR 1 679 in Estonia, and EUR 1 384 in Latvia.

Compared to the 3^rd quarter of 2021, the lowest annual increase rate of average earnings was registered in Latvia - 6.3 %, in Estonia it constituted 8.1 % and the highest rate - 12.6 % - was recorded in Lithuania.

Methodological explanations

The data source used for wage and salary statistics is the sample survey of merchants, state and local government institutions, foundations, associations and funds, as well as administrative data.

CSB calculations of average wages in public sector include central and local government institutions and commercial companies thereof, companies with central or local government capital participation of 50 % and over, excluding foundations, associations, funds, and commercial companies thereof.

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

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

Average monthly and hourly earnings and change in labour costs are calculated from not rounded figures.

In line with the regulatory enactment of the European Union, when compiling data on labour costs, wages and salaries include remuneration in kind (goods and services provided by the employer to employees free of charge or at a lower price, living quarters, mobile telephone, transport compensation, etc.) and exclude payment for the days not worked due to illness that is paid by the employer. Other labour costs include statutory social security contributions payable by the employer, employers' contractual and voluntary social security contributions (additional pension insurance contributions, health and life insurance contributions, etc.), support payments from the employer, gifts, payments of a sick list A, severance pay, entrepreneurship state risk duty.

Media requests:
Communication Section
E-mail: [email protected]
Phone: +371 67366989, +371 27880666

More information on data:
Lija Luste
Wage Statistics Section
E-mail: [email protected]
Phone: +371 67366917

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