02.03.2021 - Economy

Average salary before tax in 2020 was EUR 1,143 in Latvia

Data published March 1 by the Central Statistical Bureau (CSB) show that in 2020, the average monthly gross wage in the country for full-time work was EUR 1 143. 

Compared to 2019, the average monthly salary increased by EUR 66 or 6.2 %, but the salary for one hour worked before taxes - by 6.6 % (from EUR 7.47 to 7.97). Average net wages and salaries (calculated based on labor taxes applicable to the workplace) comprised EUR 841 or 73.6 % of the gross salary. It increased by 6.1 % during the year. The real increase in net wages and salaries, taking into account the rise in consumer prices, was 5.9 %.

The median gross wage in 2020 was EUR 893. Compared to 2019 (EUR 832), it grew slightly faster than the arithmetic average salary - an increase of 7.3 %. In 2020, net median wages after taxes (net) constituted EUR 664 and rose by 5.9 % over the year. Median is calculated based on the information available in statistical surveys and the State Revenue Service.

Average wages and salaries are affected not only by increases or decreases in wages and salaries of employees but also by structural changes in the labour 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 and salary fund and the number of full-time employees used to calculate average wages.

Due to the COVID-19 crisis in 2020, compared to last year, the number of employees in the country, recalculated as full-time, decreased by a total of 29.3 thousand or 3.9 %. It was affected by redundancies, reductions in workloads and a decrease in the number of full-time employees due to downtime benefits. The decrease was observed in all sectors, except for information and communication services, real estate and health and social care, where there was an increase in the number of employees.

The wage and salary fund in the country as a whole increased by EUR 200.8 million or 2.0 %, but its decrease was observed in transport and storage, accommodation and food service activities, administrative and support service activities, arts, entertainment and recreation, and other services.

Source: eng.lsm.lv

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