Mining wage

Average gross salary in Latvia calculated at EUR 1,297 – Baltic News Network

In the first quarter of 2022, the average gross wages and salaries for full-time work in the country amounted to EUR 1,297. Compared to the first quarter of 2021, average monthly revenues increased by EUR 84 or 6.9%, approaching the annual rate of increase recorded before the pandemic. (7.2% in 2019).

The hourly wage before tax increased to EUR 8.72 or 9.6%.

Compared with the fourth quarter of 2021, average monthly gross wages and salaries fell by 2.9% and hourly earnings by 1.7% in the first quarter of 2022, according to data from the Central Bureau of Statistics of Latvia.

In 2022, the national minimum wage remained at the same level as it was the previous year – EUR 500 for full-time work, but from 1 January 2022 the maximum non-taxable minimum increased and the income thresholds subject to different income tax rates have thus changed. affecting the average after-tax (net) salary.

Average net wages and salaries (calculated on the basis of labor taxes applicable at the workplace) amounted to EUR 951 or 73.3% of gross wages and salaries. During the year, net profit grew more slowly than gross profit – by 6.2%. However, taking into account the rise in consumer prices, net incomes fell by 2.7%, indicating a decline in the purchasing power of employees.

In the first quarter of 2022, median gross wages and salaries for full-time work amounted to EUR 1,000. Compared to the first quarter of 2021 (947 EUR), they increased by 53 EUR or 5.6%. In the first quarter of the year, median net wages and salaries (after tax) amounted to 743 euros and increased by 5.1% over the year.

The median is calculated based on information available from statistical surveys and State Revenue Service administrative data.

The median is the average in the middle of the ascending or descending order of workers’ salaries, i.e. half of the salaries are above the median and the other half are below. Since the median, relative to average arithmetic earnings, is not influenced by extremely high or low wages and salaries, it more accurately reflects typical earnings.

In the first quarter of 2022, average monthly earnings in the private sector amounted to EUR 1,306 and over the year they grew faster than in the public sector – by 7.2%. The average wages and salaries in the public sector amounted to 1,285 euros and their rate of increase amounted to 6.1%. The average salary in the general government sector, which includes central and local government institutions, as well as enterprises controlled and financed by central and local government, increased to EUR 1,246 or 5.6%.

Compared to the fourth quarter of 2021, average wages and salaries in the public sector fell by 7.2%, including 8.7% in the general government sector.

The decline recorded in the private sector was much smaller – 0.9%.

The evolution of average wages and salaries is influenced not only by the increase or decrease in the remuneration of employees, but also by structural changes in the labor market – companies which started and stopped their activity during the year , evolution of the number of employees and workloads that have been affected by the government restrictions imposed and the support measures taken due to the Covid-19 pandemic.

The effects caused by the factors mentioned in general can be seen in the changes in the wage and salary fund and the number of full-time employees, which are used in the calculations of the average salary.

In the first quarter of 2022, compared to the first quarter of the previous year, the total payroll increased by 13.0% or 320.8 million euros, while the number of salaried workers, recalculated in full-time units , increased by 38,600 or 5.7%.

Over the year, the highest revenue growth was recorded in professional, scientific and technical activities, water supply, sanitation, waste management and remediation activities, arts activities, entertainment and leisure, accommodation and catering, the energy sector, as well as financial activities. and insurance activities.

In the arts, entertainment and recreation, accommodation and catering activities, as well as in the financial and insurance activities, the wage and salary fund grew faster than the number of employees, while in the other activities above, fund growth was observed, but the number of employees decreased.

A decline in average wages and salaries was recorded in other service activities (by 2.6%), due to a greater increase in the number of full-time employees than in the wage and salary fund.

In the first quarter of 2022, average monthly wages and salaries for full-time work above the national average were recorded in financial and insurance activities (EUR 2,574), information and communication (EUR 2,206) , professional, scientific and technical activities (EUR 1,693), the energy sector (EUR 1,612), human health and social action activities (EUR 1,569), public administration and defense ( 1,433 EUR), as well as mines and quarries (1,322 EUR).

The lowest average gross incomes were observed in accommodation and catering activities (811 EUR) and in education (988 EUR).

In the first quarter of 2022, compared to the first quarter of 2020, the largest increase in average net wages and salaries was recorded in Riga (by 7.5%) and Pierīga (7.0%), thus leaving the greatest influence on the evolution of the national average rate. The highest average gross earnings for full-time work were observed in Riga (EUR 1,467), while the lowest in Latgale (EUR 882, or 40% less than in the capital). It should be noted that the gap in average incomes between Riga and the regions widened during the year.

In the first quarter of 2022, gross hourly wages amounted to 8.72 euros (7.96 euros in the first quarter of 2021), and over the year they increased by 9.6%.

Hourly labor costs which include wages and salaries as well as other work-related expenses of the employer during the year fell from EUR 9.94 to EUR 10.99 or 10.6%, which is explained by the increase in total labor costs and hours worked – by 13.3% and 2.4%, respectively.

In the first quarter of 2022, the highest average gross earnings among the Baltic States were recorded in Lithuania – EUR 1,730 for full-time work, followed by Estonia with EUR 1,593, and the lowest wages and salaries were registered in Latvia – 1,297 EUR.

Compared to the first quarter of 2021, the lowest annual rate of increase in average earnings was recorded in Latvia (6.9%), in Estonia it amounted to 8.1% and the highest was recorded in Lithuania – 14.0%.

It should be mentioned that at the beginning of the year the minimum wage in Lithuania and Estonia was increased: in Lithuania from 642 to 730 EUR or 13.7% and in Estonia from 584 to 654 EUR or 12. 0%.