Among them, in the private sector, the average gross salary in the second quarter of 2024 grew by 8.3%, reaching 1,644 euros, while in the public sector, the average gross salary increased by 12.4%, reaching 1,743 euros.
In the general government sector, which includes state and local government institutions, the State Social Insurance Agency, as well as capital companies controlled and financed by the state and local governments, the average gross salary in the second quarter of this year was 1,684 euros, which is an increase of 12.9% compared to 2023 the second quarter.
On the other hand, compared to the previous quarter – the first quarter of 2024 – the monthly average gross wage has increased by 2.9%. Among them, the average wage in the private sector increased by 1.8%, in the public sector – by 5.2%, and in the general government sector – by 4.8%.
The payment for one hour worked before taxes in the second quarter of this year was 11.41 euros, which is an increase of 8.9% compared to the second quarter of last year, and 7.2% compared to the first quarter.
On the other hand, the average net salary, calculated using the labor taxes applicable at the workplace, in the second quarter of 2024 was 1,213 euros or 72.6% of the gross salary, and during the year it increased by 8.9%, outpacing the rise in consumer prices. Real net wage growth, adjusted for inflation, was 8%.
Data from the Statistical Office also show that the median gross salary for full-time work in the second quarter of 2024 was 1,350 euros. Compared to the second quarter of 2023, when the median gross salary for full-time work was 1,215 euros, it has increased by 135 euros or 11.1%. The median salary after payment of employment taxes (net) in the second quarter of this year was 991 euros, which is an increase of 11.6% over the year.
Changes in the average salary are not only affected by the increase or decrease in the wages of employees, but also by labor supply and demand trends and structural changes in the labor market. The influence of the mentioned factors appears in general in the changes of the wage fund and the number of full-time employees, which are used for calculating the average wage, notes the statistics office.
The calculated wage fund in the second quarter of 2024 compared to the second quarter of last year in Latvia increased by 8.5% or 290.2 million euros, but the number of employees, recalculated in full-time, decreased by 7,500 or 1%.
During the year, the average wage grew the fastest in the education sector – by 19.6%, significantly affecting the annual growth rate in the public sector. The average salary also grew rapidly in the sector of other services, which includes the operation of public, political and other organizations, repair of personal items and household utensils, dry cleaners, hairdressers, beauty care, funerals and other services, – by 15.6%, administrative and service services in the operating sector – by 14.4%, as well as in the accommodation and catering services sector – by 11.5%.
In all the mentioned sectors, with the exception of the accommodation and catering services sector, the rapid increase in the average salary was influenced not only by the increase in wages, but also by the decrease in the number of employees during the year.
In the second quarter of 2024, the average monthly salary for full-time work was higher than the national average in financial and insurance activities – 2,847 euros, in information and communication services – 2,661 euros, in energy – 2,217 euros, in the professional, scientific and technical services sector – 2,102 euros, in public administration – 1,959 euros, in mining and quarrying – 1,824 euros, in health and social care – 1,754 euros, as well as in the water supply, wastewater, waste management and rehabilitation sector – 1,747 euros.
The lowest average wage for a full-time job was in the accommodation and catering services sector – EUR 1,094 before tax.
In the second quarter of 2024, compared to the second quarter of 2023, the average salary before tax increased fastest in Zemgale – by 12%, in Latgale – by 11.6% and in Vidzeme – by 10.9%.
The highest average gross salary for full-time work was in Riga – 1,842 euros, while the lowest – in Latgale, where it was 1,194 euros, which is 35% less than in the capital. The average salary gap between Riga and the regions has slightly decreased during the year in all regions, except for Kurzeme. The biggest decrease was observed in Zemgale – by 2.1 percentage points.
The cost of one hour of labor, which includes both wages and other labor-related employer expenses, increased during the year from EUR 13.12 to EUR 14.3, or by 9%, which was influenced by the increase in total labor costs by 8.5% and reduction of hours worked by 0.4% during the year.
The Statistical Office also states that from the second quarter of 2023, the annual growth rate of the average salary is decreasing in all Baltic countries. In Estonia, in the second quarter of 2024, compared to the second quarter of 2023, the average salary before taxes increased by 7.2%, while in Lithuania the increase was by 9.8%.
2024-08-30 06:06:02