Wages pick up 7.2% on year in first quarter

Take note – story published 6 years ago

In the first quarter of 2017 the average gross wages in the country was €886, growing €59 euros or 7.2% on year, according to data released on May 31 by the Central Statistics Office.

The average wage was €648 after tax, which is an increase of 6.4%. After-tax earnings picked up slower than gross wages.

This year the wage and salary rise in public sector was slightly higher than in other sectors (7.3%). Private sector growth was 7.2% and that of the general government sector 7.5%.

In the 1st quarter of 2017, the average gross wages and salaries amounted to €881 in the private sector and to €897 in public sector, whereas in general government sector, which includes central and local government institutions, State Social Insurance Agency, as well as enterprises controlled and financed by the central and local government, the average gross wages and salaries amounted to €847.

Annual changes (in percent) of consumer prices and average wages and salaries

Wages and wage changes by sector

(Images: Central Statistics Office)

Commenting on the statistics, Swedbank Latvia said: "The income of households is increasing – they are earning more and working more. Their confidence is gradually improving after collapsing at the end of last year. The unemployment continues on its downward path, heating up the labour market and putting pressure on wages. According to our latest forecast, the average gross wage growth will be about 6% this year. However, the start of the year for the economy has been better than expected, and the wage growth could turn out to be faster."

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