In the 2nd quarter of 2021, the average monthly gross wage in the country for full-time work was 1,237 euros, according to the data of the Central Statistical Bureau (CSB). Compared to the 2nd quarter of 2020, the average monthly salary increased by 115 euros or 10.2%, but the salary for one hour worked before taxes – by 4.6% (from 8.20 to 8.57 euros). In the 2nd quarter of 2021, compared to the 1st quarter, the average monthly gross wage increased by 2.6%, while the hourly wage – by 8.4%.
The average monthly salary after taxes – 914 euros
The average net salary (calculated using labor taxes applicable at the workplace) was 914 euros or 73.9% of the gross salary. During the year, it increased by 10.4%. The real increase in net wages and salaries, taking into account the rise in consumer prices, was 7.9%.
The median monthly salary is 960 euros
The median gross wage for full-time work in the 2nd quarter of 2021 was 960 euros. Compared to the 2nd quarter of 2020 (882 euros), it increased by 8.9%. The median wage after taxes (net) in the second quarter of this year was 713 euros, and it increased by 8.3% during the year.
The median is calculated using available information from statistical surveys and State Revenue Service data.
The median is the average in the middle of the ascending or descending order of wages, ie half of the wages are higher than the median and the other half are lower. As the median compared to the arithmetic average wage is not affected by the values of the extreme wage, it better describes the typical wage.
In the public sector, annual growth is faster
In the 2nd quarter of 2021, the average monthly gross wage in the private sector was 1,215 euros, and it increased by 9.0% during the year. In the public sector, the average wage was 75 euros higher (1,291 euros) than in the private sector, and its annual growth rate was faster (13.4%). In the general government sector, which includes state and local government institutions, as well as state and local government controlled and financed capital companies, the average wage increased to 1,268 euros or by 14.8%.
Compared with the first quarter, average wages and salaries in the private sector increased by 0.7%, but in the public and general government sectors – by 6.6% and 7.4%, respectively.
Changes in average wages and salaries are affected not only by an increase or decrease in employees’ wages, but also by structural changes in the labor market – companies that started and closed down during the year, changes in the number of employees and workloads. The impact of these factors is generally reflected in changes in the wage bill and the number of full-time employees used to calculate average wages.
Due to the decrease in the restrictions set during the COVID-19 pandemic, the number of full-time employees in the country in the 2nd quarter of 2021 increased by 28.6 thousand compared to the 2nd quarter of the previous year. or 4.1%. The decrease was observed only in the transport and storage sector (-1.9%), education (-1.7%), energy (-1.0%), finance and insurance (-0.9%), as well as arts entertainment and recreation (-0.2%).
In its turn, the wage bill increased during the year in all sectors, which in the country as a whole caused its increase by 14.7% or 349.7 mln. euro.
More information on wages and hourly labor costs in Latvia is available on the official statistics portal in the sections “Wage” a “Labor costs’’.
CSB Communication Department
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