Wage growth continues in Latvia despite economic strife of COVID

Compared to the third quarter of 2019, in the third quarter of 2020 the average gross wages and salaries for full-time work increased by 5.9 % or EUR 64 and comprised EUR 1,147 according to data released December 1 by the Central Statistical Bureau (CSB).

Even after the arrival of the coronavirus pandemic, wages continued to rise slightly. Compared to the second quarter of 2020, in the third quarter of 2020 gross wages and salaries increased by 2.7 %.

Average net wages and salaries (calculated based on labor taxes) comprised EUR 844 or 73.5 % of the gross salary. During the year, it increased by 6.0 %, but compared to the second quarter of 2020 by 2.4 %.

The median gross wage in the third quarter of 2020 was EUR 908. Compared to the third quarter of 2019 (EUR 848), it rose more rapidly than the average wages and salaries (7.1 %). In the third quarter of this year, net median wages after taxes (net) constituted EUR 685 and rose by 7.5 % over the year.

"Median 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 influenced by extremely high or low wages and salaries less, it reflects typical earnings more precisely," the CSB explained.

In the private sector, annual growth is twice as fast

In the third quarter of 2020, the average gross wages and salaries in the private sector amounted to EUR 1,144, and increased by 7.1 % during the year. In the public sector, average gross monthly wages and salaries were EUR 16 higher (EUR 1,160) than in the private sector, but the annual growth rate was slower at 3.3 %.

As compared to the second quarter of 2020, in the private sector average gross wages and salaries rose by 3.2 %, and in the public and general government sector by 1.9 %.

Latvia wage trends 3Q 2020
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