In Q2 2022 the average gross wages and salaries for full-time work in the country amounted to EUR 1 362.
Compared to Q2 2021, the average monthly earnings grew by EUR 105 or 8.3 %. Hourly earnings before taxes increased to EUR 9.20 or by 5.6 %.
Compared to Q1, in Q2 2022 the average monthly gross wages and salaries grew by 5.0% and hourly earnings by 5.5 %, according to data from the Central Statistical Bureau of Latvia.
Average net wages and salaries, which was calculated based on labour taxes applicable on workplace, comprised EUR 997 or 73.2% of gross earnings.
Over the year, net earnings grew slower than gross earnings – by 7.5%.
However, considering rise in the consumer prices, net earnings fell by 7.6% pointing to sharp decline in the purchasing power of salaried workers.
In Q2 2022, median gross wages and salaries for full-time work amounted to EUR 1 078, while net (after taxes) to EUR 801. Compared to Q2 2021, both gross and net wages and salaries in the country grew by 10.8%.
Median is calculated based on the information available in statistical surveys and administrative data of the State Revenue Service.
The median is the average in the middle of the ascending or descending order of wages of the 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.
In Q2 2022, the average monthly earnings in private sector comprised EUR 1 358, and over the year they have grown faster than in public sector – by 9.0%.
The average wages and salaries in public sector amounted to EUR 1 380, and the increase rate thereof constituted 7.0%.
The 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, grew to EUR 1 346 or by 6.3%.
Compared to the 1st quarter of 2022, the average wages and salaries in public sector went up by 7.4%, of which by 8.1% in general government sector and by 4.0% in private sector.
In Q2 2022, the average monthly wages and salaries for full-time work above the national average were recorded in financial and insurance activities (EUR 2 413), information and communication (EUR 2 239), energy sector (EUR 1 765), professional, scientific and technical activities (EUR 1 723), human health and social work activities (EUR 1 621), public administration and defence (EUR 1 556), as well as mining and quarrying (EUR 1 440).
The lowest average gross earnings were observed in accommodation and food service activities (EUR 861).
Change in the 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 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 Q2 2022, compared to Q2 previous year, the total wage and salary fund increased by 11.6% or EUR 315.7 million, while the number of salaried workers, recalculated into full-time units, grew by 22.0 thousand people or 3.1%.
Over the year, the sharpest rise in the average earnings was registered in agriculture, forestry and fishing (of 15.1%), arts, entertainment and recreation (12.6%), transportation and storage (12.2%), water supply, sewerage, waste management, and remediation activities (12.0%), as well as professional, scientific and technical activities (12.0%).
In all the above activities, except for arts, entertainment and recreation, growth in the wage and salary fund was observed, but number of employees reduced. However, in arts, entertainment and recreation the fund grew faster than the number of employees.
In Q2 2022, when compared to Q2 2021, the sharpest rise in the average earnings before taxes was recorded in Pierīga (of 9.0%) and Vidzeme (8.5%).
The highest average gross earnings for full-time work were observed in Riga (EUR 1 525), whereas the lowest in Latgale (EUR 947, which is 38% fewer than in the capital).
In Q2 2022, gross hourly earnings amounted to EUR 9.20, and over the year they grew by 5.6% (from EUR 8.71 in Q2 2021).
Over the year hourly labour costs (that include wages and salaries as well as other labour-related expenses of the employer) rose from EUR 10.85 to EUR 11.54 or by 6.4%, which was due to the increase in the total labour costs and hours worked – of 12.1% and 5.4%, respectively.
In Q2 2022, the average gross earnings for full-time work in Lithuania amounted to EUR 1 781, in Estonia to EUR 1 693, and in Latvia to EUR 1 362.
Compared to Q2 2021, the lowest annual increase rate of average earnings was registered in Latvia – 8.3%, in Estonia it constituted 10.1% and the highest rate was recorded in Lithuania – 13.7%.