Wages continue to rise fast in Latvia

Data released August 29 by the Central Statistical Bureau (CSB) show that in the 2nd quarter of 2019, compared to the 2nd quarter of 2018, average monthly gross wages and salaries grew by 7.8 % or EUR 78, reaching EUR 1 083 for full-time work.

As in the 1st quarter of the year, the annual growth rate of earnings in the 2nd quarter was 7.8 %.

Compared to the 1st quarter of 2019, in the 2nd quarter of 2019 gross wages and salaries grew by 4.6 %.

Net wages and salaries (calculated based on the labor taxes applicable at workplace) constituted EUR 799. Over the year, net earnings rose by 7.5 %, while compared to the 1st quarter of 2019 they rose by 4.1 %.

Considering annual consumer price growth of 3.3 %, the real increase in net wages and salaries comprised 4.1 %.

Meanwhile In the 2nd quarter of 2019, median gross wages and salaries amounted to EUR 838, and, compared to the 2nd quarter of 2018 (when gross earnings constituted EUR 769), they grew faster than mean arithmetic earnings (a rise of 9.1 %). In the 2nd quarter of 2019, net median earnings (after taxes) constituted EUR 619 and rose by 8.7 % over the year.

The median is calculated based on the information available in statistical surveys and administrative data of the State Revenue Service and is an average indicator located in the middle of employee earnings sorted in an ascending or descending order. 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 the 2nd quarter of 2019, average monthly gross wages and salaries in public sector exceeded the indicator recorded in private sector – EUR 1 097 and EUR 1 079, respectively. However, a faster annual increase rate was registered in the private sector – 8.9 %, compared to 6.0 % in the public sector.

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, grew to EUR 1 040 or by 5.7 %.

The best-paid jobs were in financial services and IT. The lowest were in observed in hospitality, cleaning, hairdressing, the funeral trade, education and the arts.

Pay for jobs, Q2 2019
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