The average gross salary in the second quarter in Latvia has increased by 10.2% :: Dienas Bizness

In Latvia, the average gross wage or average salary before taxes for full-time work in the second quarter of this year was 1237 euros, which is 10.2% or 115 euros more than in the corresponding period of 2020, according to the Central Statistical Bureau.

Among them, in the private sector, the average gross wage in the second quarter of 2021 increased by 9%, reaching 1215 euros, but in the public sector, the average gross wage increased by 13.4%, reaching 1291 euros.

In the general government sector, which includes state and local government institutions, the State Social Insurance Agency, as well as state and local government controlled and financed capital companies, the average gross wage in the second quarter of this year was 1268 euros, which is an increase of 14.8% compared to 2020. the relevant period.

In turn, the salary for one hour worked before taxes in the second quarter of this year has increased by 4.6% compared to the corresponding period of the previous year – from 8.2 to 8.57 euros.

In the second quarter of 2021, compared to the first quarter of this year, the average monthly gross wage has increased by 2.6%, while the hourly wage – by 8.4%.

The average net wage, calculated using labor taxes applicable at the workplace, in the second quarter of this year in Latvia was 914 euros or 73.9% of the gross wage. During the year, it has increased by 10.4%. The real increase in net wages and salaries, taking into account the rise in consumer prices, was 7.9%.

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The Department of Statistics also informed that the median gross wage for full-time work in the second quarter of 2021 was 960 euros, which, compared to the second quarter of 2020, is an increase of 8.9%. At the same time, the median wage after earning taxes or net in the second quarter of this year was 713 euros, showing an increase of 8.3% during the year. The median is the average in the middle of the ascending or descending order of wages, ie half of the wages are higher than the median and the other half are lower.

Changes in average wages and salaries are affected not only by an increase or decrease in employees’ wages, but also by structural changes in the labor market – companies that started and closed down during the year, changes in the number of employees and workloads. The impact of these factors is generally reflected in changes in the wage bill and the number of full-time employees used to calculate average wages, according to the Statistical Office.

With the restrictions imposed during the Covid-19 pandemic decreasing, the number of full-time employees in the country increased by 28.6 thousand or 4.1% in the second quarter of 2021 compared to the second quarter of the previous year. The decrease was observed in the transport and storage sector (-1.9%), education (-1.7%), energy (-1%), finance and insurance (-0.9%), and arts entertainment and recreation (- 0.2%) sectors.

In turn, the wage bill increased during the year in all sectors, which in the country as a whole caused its growth by 14.7% or 349.7 million euros.

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In the second quarter of 2021, in seven sectors the average gross monthly wage for full-time work was higher than the national average – in the financial and insurance sector (2258 euros), information and communication services (1955 euros), energy (1644 euros), health and social work care (1564 euros), public administration (1444 euros), professional, scientific and technical services (1400 euros), as well as mining and quarrying (1319 euros).

During the year, the average salary has grown the fastest in the health and social care sector – from 1158 to 1564 euros or by 35.1%, in education – by 12.4% and in trade – by 11.7%.

The lowest average wages and salaries in the second quarter of 2021 were in the accommodation and food service sector (738 euros), other services sector (956) and the arts, entertainment and recreation sector (982 euros).

Compared to the second quarter of 2020, the average monthly gross wage in the second quarter of this year has grown the fastest in Latgale – by 12.9%, while the smallest increase was in Pieriga – by 9.3%.

The highest average salary before taxes for full-time work in the second quarter of this year in Latvia was in Riga – 1382 euros, while the lowest – in Latgale (887 euros), which is 36% less than in Riga.

Gross wages and salaries per hour worked in the second quarter of 2021 were 8.57 euros, and during the year it has increased by 4.6%.

Hourly labor costs, which include both wages and salaries and other labor-related costs of the employer, increased from EUR 10.31 to EUR 10.71 or by 3.8% during the year, which was influenced by the increase in total labor costs and hours worked, respectively. by 13.9% and 9.7% during the year.

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