The Central Statistical Bureau of Latvia (CSP) reports that the average gross wage for full time work was EUR 1 384 a month in Q3 2022. Compared with the same quarter of 2021, this is an increase of EUR 82 or 6.3%.
The hourly rate before taxes was EUR 9.08. Over the course of the year it increased by 5.6%. Compared with Q2, the average monthly gross wage increased by 1.6% in Q3, whereas the hourly rate went down by 1.3%. The average wage after taxes in Latvia is EUR 1 013.
However, considering the consumer price increase, the net labour wage in Latvia has dropped by 12.9%.
This indicates a sharp drop in the purchasing power of employed people for the third consecutive quarter, CSP warns.
In Q3 the average gross wage was EUR 1 393 in the private sector. Over the course of the year it has increased by 6.1%. In the public sector the average wage was EUR 1 372. It’s annual growth rate was more rapid than that in the private sector – 6.6%. The average wage in state and municipal capital associations increased to EUR 1 336 or 6.1%. Compared with Q2 2022, the average wage in the public sector reduced by 0.6%. In the private sector it increased by 2.6%.
In Q3 2022 the average wage before taxes for full-time work was the highest in the finances and insurance sector (EUR 2 406), ICT sector (EUR 2 301), professional, scientific and technical services sector (EUR 1 784), energy sector (EUR 1 669), mining and quarrying sector (EUR 1 645), state administration (EUR 1 606), as well as healthcare and social care sector (EUR 1 564). The lowest average wage before taxes was in the accommodation and catering sector (EUR 916).
The the wage fund in Q3 2022, when compared with the same quarter of 2021, has increased by 9,5% or EUR 270.4 billion, whereas the number of people employed full-time has increased by 22.4 thousand or 3.1%. Average wages increased the most rapidly in mining and quarrying (13.5%), water supply, sewer, waste management and sanitation (11.7%), as well as transport and storage sector (10.6%), agriculture, forestry and fisheries (9.5%) and energy sector (9.3%).
Among Baltic States the most rapid increase in wages was in Lithuania – EUR 1 799 for full-time work. In Latvia the average wage was EUR 1 384 and EUR 1 679 in Estonia. Compared with Q3 2021, the average wage growth rate was the lowest in Latvia – 6.3%, in Estonia it was 8.1% and 12.6% in Lithuania.
Also read: Latvia’s GDP down by 0.6% in Q3 2022