In 2023 the gross average monthly wages and salaries for full-time work amounted to EUR 1 537 and compared to 2022 they have increased by EUR 164 or 11.9%. Hourly earnings before taxes went up to EUR 10.14 or by 11.5%, according to data from the Central Statistical Bureau of Latvia (CSP).
In the private sector the gross average wage in 2023 went up by 11.5%, reaching EUR 1 533. In the public sector, on the other hand, the average gross monthly wage went up by 13.1%, reaching 1 553.
In the general government sector, which includes state and municipal institutions, State Social Insurance Agency, as well as capital associations owned by the state and municipalities, the average gross monthly wage was EUR 1 502 last year, which is 12.2% more when compared to 2022.
The average gross wage per hour worked last year increased by 11.5% to EUR 10.14. Hourly labour costs, comprising both wages and salaries and other labour-related employer’s expenses, increased from EUR 11.46 to EUR 12.76 or 11.3% over the year, driven by an increase in total labour costs and hours worked of 13% and 1.5% respectively over the course of the year, CSP reports.
The average net wage, calculated using employment taxes applicable at the workplace, in 2023 in Latvia was EUR 1 119 or 72.9% of the gross wage. During the year, the average net wage went up by 11.3%, but taking into account inflation, the real net wage increase was 2.2%.
CSP reports that the changes in average wages are influenced not only by increases or decreases in employees’ wages, but also by labour demand and supply trends and structural changes in the labour market. These factors are affected by the labour pay fund and the number of full-time workers, who are used to calculate average wages and changes in them.
The payroll fund in 2023, when compared to 2022, grew by 12.9% or EUR 1.571 billion in Latvia. The number of full-time workers went up by 6 800 or 0.9%.
Over the course of the year average pay went up the most in the countryside, forestry and fishery sectors (by 18.2%), energy sector (by 17.2%), transport and storage sector (by 15.5%), government and defence sectors (by 15.0%), education (by 14.8%), as well as mining and quarrying sector (by 14.3%).
In 2023 average monthly wage was higher than the average across the country was in finance and insurance sector (EUR 2 678), ICT sector (EUR 2 549), energy sector (EUR 1 972), professional, scientific and technical services sector (EUR 1 969), government and defence sector (EUR 1 810), mining and quarrying sector (EUR 1 703), healthcare and social care sector (EUR 1 654), as well as agriculture, forestry and fishery sector (EUR 1 545).
The smallest average wages before taxes were in accommodation and catering services sector – EUR 993.
In 2023, as compared to 2022, the average pay before taxes went up the most rapidly in Vidzeme (by 13.5%), followed by Latgale (by 12.7%), and Pieriga (by 12.6%).
CSP reports that the biggest gross average wage for full-time work in 2023 was in Riga (EUR 1 706) and Pieriga (EUR 1 505). It was the lowest in Latgale (EUR 1 083), which is 37% less when compared to the capital city. The pay gap between Riga and regions went down in all regions over the course of the year. The biggest drop was observed in Vidzeme – by 1.5 percentage points.
Statistical information also indicates that in Q4 2023 the average gross monthly wage in Latgale was EUR 1 610, which is 11.6% more than a year prior. In Q4 2023, as compared to the same quarter of 2022, the gross average wage in the public and government sector went up 15%. The growth in the private sector was 10.1%.
When compared to Q3 2023, the average gross pay in Latvia is up 4%. The growth in the public sector was 6.6%, in the private sector it was 2.7%. In the government sector average wages went up by 7.6%.
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