CSP: average wages in Latgale 36% below wages in Riga

In Q2 2021 the average monthly gross wages and salaries for full-time work comprised EUR 1 237. Compared to Q2 2020, the average monthly gross wages and salaries grew by EUR 115 or 10.2 %, but gross hourly payment – by 4.6 % (from EUR 8.20 to EUR 8.57).
Compared to the 1st quarter, in Q2 2021 average monthly gross wages and salaries increased by 2.6 %, but hourly payment by – 8.4 %, according to data from the Central Statistical Bureau of Latvia.
Average net wages and salaries (calculated based on labour taxes applicable on workplace) comprised EUR 914 or 73.9 % of gross wages and salaries. During a year it increased by 10.4 %. Considering the consumer price growth, the real increase of the wages and salaries comprised 7.9 %.
In Q2 2021 median monthly gross wages and salaries for full-time work comprised EUR 960. Compared to Q2 2020 (EUR 882) it rose by 8.9 %. In Q2 this year, net median wages (after taxes) constituted EUR 713 and rose by 8.3 % over the year.
Median is calculated based on the information available in statistical surveys and the State Revenue Service.
The median is the average in the middle of the ascending or descending order of wages of the employees, 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 2021, average monthly gross wages and salaries in private sector comprised EUR 1 215 and during a year rose by 9.0 %. In public sector average wages and salaries were EUR 75 more (EUR 1 291) than in private sector, and its annual growth rate was faster (13.4 %). General government sector, which includes central and local government institutions, as well as enterprises controlled and financed by the central and local government, average wages and salaries increased to EUR 1 268 or 14.8 %.
As compared to the 1st quarter, in private sector average gross wages and salaries rose by 0.7 %, but in public and general government sector – by 6.6 % and 7.4 %, respectively.
Changes in the average wages and salaries are influenced not only by the rise or drop in employee remuneration, but also structural changes of the labour market – enterprises that had 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 may be seen in the changes in the wage and salary fund and number of full-time employees, which are used in the average wage calculations.
As the impact of restrictions imposed during the COVID-19 pandemic reduced, in Q2 2021, compared to the same period of the previous year, the number of salaried workers, recalculated into full-time units, in total in the country increased by 28.6 thousand or 4.1 %. The drop was observed only in transport and storage sector (-1.9 %), education (-1.7 %), energy (-1.0 %), financial and insurance activities (-0.9 %), as well as arts, entertainment and recreation (-0.2 %).
In turn, during a year wage and salary fund rose in all sectors, which in total resulted in its growth in the country of 14.7 % or EUR 349.7 million.
In Q2 2021 average monthly wages and salaries for full-time work in seven sectors was larger than national average – in financial and insurance activities, information and communication, energy, health and social care, public administration, professional, scientific and technical activities, as well as mining and quarrying.
Average wages and salaries increased faster during the year in health and social care sector – from EUR 1 158 to EUR 1 564 or by 35.1 %, education – by 12.4 % and trade – by 11.7 %.
In Q2 2021 the smallest average wages and salaries were in accommodation and catering services (EUR 738), other service activities (EUR 956) and arts, entertainment and recreation (EUR 982) sectors.
Compared to Q2 2020, in Q2 2021 average gross monthly wages and salaries grew faster in Latgale – by 12.9 %. The slowest growth was observed in Pierīga – by 9.3 %. The largest average gross wages and salaries for full-time work were in Riga – EUR 1 382, but the lowest – in Latgale (EUR 887), which is 36 % less than in the capital.
Gross wages and salaries per hour worked in Q2 2021 were EUR 8.57 and over the year it increased by 4.6 % (in Q2 2020 – EUR 8.20).
Hourly labour costs, which include both wages and salaries and other labour-related costs of the employer, increased from EUR 10.31 to 10.71 or by 3.8 % during the year, which was affected by the rise in the total sum of labour costs and the number of hours worked by 13.9 % and 9.7 %, respectively.
In Q2 2021 the largest average gross wages and salaries in the Baltic countries were registered in Lithuania – EUR 1 566 for full-time work, in Estonia – EUR 1 538, but in Latvia it was the lowest – EUR 1 237.
As compared to Q2 2020, in Lithuania there was the most rapid increase in average wages and salaries – of 12.0 %, in Latvia – 10.2 %, but in Estonia – 7.3 %.