Average gross salary 1,297 euros, net salary 951 euros

Data published by the Central Statistical Bureau of Latvia (CSB) May 30 show that in the 1st quarter of 2022 the average gross wages and salaries for full-time work in the country amounted to EUR 1 297.

Compared to the 1st quarter of 2021, the average monthly earnings grew by EUR 84 or 6.9 %, coming nearer the annual increase rate recorded before the pandemic (7.2 % in 2019). Hourly earnings before taxes increased to EUR 8.72 or by 9.6 %.

Compared to the 4th quarter of 2021, in the 1st quarter of 2022 average monthly gross wages and salaries dropped by 2.9 % and hourly earnings by 1.7 %.

In 2022, the national minimum wage remained at the same level it was the year before – EUR 500 for full-time work, however as of 1 January 2022 the maximum non-taxable minimum increased and income thresholds subjected to different income tax rates changed thus affecting the average earnings after taxes (net).

Average net wages and salaries (calculated based on the labour taxes applicable on workplace) comprised EUR 951 or 73.3 % of gross wages and salaries. Over the year, net earnings grew slower than gross earnings – by 6.2 %. However, considering rise in the consumer prices, net earnings fell by 2.7 % pointing to reduced purchasing power of salaried workers.

 

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

The median is the average in the middle of the ascending or descending order of wages of the workers, 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, according to the CSB.

Change in average monthly earnings by sector

 

Q1 2021, EUR

Q4 2021, EUR

Q1 2022, EUR

Q1 2022

Change (%), compared to

Q1 2021

Q4 2021

Total

1 213

1 336

1 297

6.9

-2.9

private sector

1 218

1 318

1 306

7.2

-0.9

public sector

1 211

1 384

1 285

6.1

-7.2

general government sector

1 180

1 364

1 246

5.6

-8.7

In the 1st quarter of 2022, the 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), energy sector (EUR 1 612), human health and social work activities (EUR 1 569), public administration and defence (EUR 1 433), as well as mining and quarrying (EUR 1 322).

The lowest average gross earnings were observed in accommodation and food service activities (EUR 811) and education (EUR 988).

 

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