Average monthly wage in Latvia reaches 1 373 euros before taxes in 2022

In 2022 the average gross wages for full-time work amounted to EUR 1 373. Compared with 2021, the average monthly earnings grew by EUR 95 or 7.5% and hourly earnings before taxes by 6.6% (from EUR 8.54 to 9.10).
The average net wages (calculated based on the labour taxes applicable to employers) comprised EUR 1 006 or 73.3 % of the gross earnings and rose by 7.1% over the year.

However, considering rise in the consumer prices, net earnings fell by 8.7%,

pointing to a sharp decline in the purchasing power of salaried workers.
In 2022 gross wages for full-time work amounted to EUR 1 081. The indicator has risen by 8.8%, compared to 2021. Wages after taxes amounted to EUR 806 and have grown by 8.9% over the year, according to data of the Central Statistical Bureau of Latvia.
In 2022 the average monthly gross wages in private sector were two euros higher than in public sector (EUR 1 375 and EUR 1 373, respectively) and show higher annual growth rate than in public sector (8.0% and 6.2%, respectively). 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 1 339 or by 5.6%.
Change in the average wages 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. 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 2022, compared with the year before, national wage fund increased by 11.5% or EUR 1 249.7 million while number of salaried workers, recalculated into full-time units, by 26.5 thousand people or 3.7%.
In terms of economic activities, the sharpest rise in the average earnings was registered in water supply, sewerage, waste management, and remediation activities (13.1%), accommodation and food service activities (11.8%), as well as agriculture, forestry and fishing and transportation and storage (11.0%). The smallest increase was recorded in human health and social work activities (2.5%), other service activities (4.9%), and construction (5.2%).
In 2022, similar to the year prior, the average gross monthly wages for full-time work above the national average were recorded in financial and insurance activities, information and communication, professional, scientific and technical activities, energy sector, human health and social work activities, public administration and defence, as well as mining and quarrying.
The lowest average gross earnings were observed in accommodation and food service activities (EUR 889).
In 2022 the highest average gross earnings for full-time work were observed in Riga (EUR 1 535) while the lowest in Latgale (EUR 961, which is 37% fewer than in the capital).
The highest rise in the average earnings before taxes was recorded in Pierīga (9.1%) while the lowest in Zemgale (6.0%).
In Q4 2022 the average monthly gross wages in the country amounted to EUR 1 443 and over the year they have grown by 8.0%.
Compared with Q4 2021 the highest rise in the average earnings was recorded in private sector (9.3%), followed by private sector with 4.9 % and general government sector with 4.1 % in Q4 2022.
Compared with Q3 2022, gross earnings in the country grew by 4.2 %. Sharper increase was observed in public sector – 5.5%. Upturn in private sector constituted 3.6 % and in general government 5.9%.
In Q4 2022 net wages amounted to EUR 1 055. Compared with Q4 2021 they have risen by 7.9% and compared to Q3 2022 by 4.0%.
In 2022 gross hourly earnings amounted to EUR 9.10, and over the year they have grown by 6.6% (EUR 8.54 in 2021).
Over the year hourly labour costs, including wages as well as other labour-related expenses of the employer, grew from EUR 10.70 to EUR 11.46 or by 7.1%. This was due to the increase in the total labour costs and hours worked – of 11.7% and 4.4%, respectively.