Average pay in Latvia was 925 euros in Q3 2017

In Q3 2017 the average gross wages and salaries for full-time work comprised 925 euros. Compared to Q3 2016, the average earnings have increased by 65 euros or 7.5 %.

Compared to the previous quarter, gross wages and salaries fell by 0.2 % or two euros in Q3 2017.
 

Compared to Q32016, gross wages and salaries fund rose by 8.3 % or 162.3 million euros, whereas the number of salaried workers (recalculated into full-time units) grew only by 0.7 % or 5.7 thousand in Q3 2017, according to data from the Central Statistical Bureau of Latvia.
 

In Q3 2017, the average net wages and salaries constituted 674 euros, which is 6.7 % more than in Q3 2016. In general, the average net wages and salaries rose slower than the earnings before taxes.
 

The increase in consumer prices registered in Q3 2017 (of 2.9 %, compared to the corresponding period of the previous year) had downward effect on the purchasing power of the employed population – the real wages and salaries grew only by 3.7 %.
 

Compared to Q3 2016, in Q3 this year similar wage and salary rise was observed in both private and public sector – of 7.7 % and 7.8 %, respectively, whereas increase in general government sector was slightly higher – 8.5 %.
 

In Q3 2017, the average gross wages and salaries amounted to 913 euros in private sector and to 954 euros in public sector, whereas in general government sector, which includes central and local government institutions, as well as enterprises controlled and financed by the central and local government, it amounted to 911 euros.
 

Compared to the corresponding quarter of the previous year, in Q3 2017 the increase in wages and salaries was recorded in all sectors, except for electricity, gas, steam and air conditioning supply (drop of 4.3 %) and real estate activities (decline of 0.5 %).
 

The sharpest rise in the average wages and salaries was observed in professional, scientific and technical activities (that include legal and accounting activities, advertising and market research, architectural and engineering activities, management consultancy activities, scientific research and development, etc.) – of 10.1 % (with the sharpest increase in activities of head offices; management consultancy activities, advertising and market research as well as scientific research and development ), public administration and education – of 9.6 % in each, mining and quarrying – of 8.8 %, manufacturing – of 8.6 %, wholesale and retail trade – of 8.2 % (with the sharpest rise in wholesale), arts, entertainment and recreation – of 8.2 %, and administrative and support service activities – of 8.0 % (with the highest growth in office administrative, office support and other business support activities and security and investigation activities).
 

In all mentioned highest-level sectors of the classification of economic activities, except for wholesale and retail trade, the rapid increase in the average wages and salaries was influenced by the fast rise in the wage and salary fund, whereas in wholesale and retail trade, wage and salary fund increased, but the number of full-time employees declined.
 

Compared to the corresponding period of the previous year, in Q3 2017 the drop in the average wages and salaries in electricity, gas, steam, and air conditioning supply was affected by the reduction in irregular premiums and bonuses (regular earnings grew by 4.4 %), while in real estate activities faster increase was registered in the number of full-time employees, as compared to the growth in the wages and salaries fund.
 

In Q3 2017, the highest wages and salaries for full-time work were registered in financial and insurance activities, information and communication and energy, energy, public administration and defence, mining and quarrying, as well as professional, scientific and technical activities. In other sectors, the average wages and salaries before taxes were below the national average.
 

The lowest wages and salaries, in turn, were observed in accommodation and food service activities, other service activities (that includes activities of public and other organisations, repair of computers and personal and household goods, washing and (dry-)cleaning, hairdressing and other beauty treatment, funeral and related activities), education, real estate activities, as well as arts, entertainment and recreation.
 

Compared to Q3 2016, regional breakdown shows the sharpest rise in the average monthly gross wages and salaries in Vidzeme, Latgale and Kurzeme regions – of 9.6 %, 9.1 % and 8.4 %, respectively. Annual rise in Riga that had the highest earnings in Q3this year (1041 euros) was the lowest among all regions – 7.1 %. The lowest average gross wages and salaries still were observed in Latgale region – 646 euros for full-time work, followed by Vidzeme with 747 euros, Kurzeme with 785 euros, Zemgale with 791 euros, whereas indicator registered in Pierīga region amounted to 866 euros.

BNN

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