MINIMUM AND AVERAGE SALARY IN LATVIA
Latvia is a small Baltic state located in the northern part of Europe. It borders Estonia to the north, Russia to the east, Belarus to the south-east, and Lithuania to the south. Since 2004 Latvia is part of the European Union, and in 2014 joined the euro zone.
Latvia is home to only 1.9 million people, and the labor force is about 975 thousand. The unemployment rate is about 6%. The population of the state consists of 35-40% Russian-speaking citizens, while the share of ethnic Russians is about 25-27%. Next, let's find out what salary in Latvia in 2020.
Minimum salary in Latvia
According to official data from the Latvian government, the minimum wage in Latvia in 2020 is 430 euros per month. This is the lowest indicator among the Baltic countries. In Lithuania, workers receive a minimum of 607 euros, and in Estonia 584. If we compare it with all EU member states, then less than in Latvia the minimum wage is fixed only in Bulgaria – 610 Bulgarian Levs per month, which is equivalent to 310 euros. The highest rate is in Luxembourg – 2,141.99 euros per month.
Note. The minimum wage in Latvia is regularly revised to take into account several factors, in particular the economic situation, changes in productivity, development of the labour market, unemployment rate and possibilities of the central budget.
According to Article 61 (second paragraph) of the Latvian Labor Law, the minimum wage level in Latvia is set by the Cabinet of Ministers. The rate has not been changed for 3 years already. The last increase was in 2018 – from 380 to 430 euros. For 5 years, the minimum wage in Latvia has increased by only 70 euros, and for 10 years by 145 euros. According to the official statement of the Latvian Ministry of Finance, in 2021 the level of minimum wage in the country can be raised to 500 euros.
Average salary in Latvia
According to the official data of the Latvian Central Bureau of Statistics, the average salary in Latvia in 2020 is 1,076 euros per month before taxes. Compared to last year, the earnings of Latvian workers increased by 72 euros or 7.2%. After paying taxes, the average salary in Latvia is 793 euros (73.7% of gross income). During the year, net pay increased by 6.8%. Taking into account inflation (2.8%), real wage growth was 3.9%.
Important. Median average salary in Latvia in 2020 is 832 euros before tax and 613 euros after all deductions.
| Region | Euro per month (gross) | Euro per month (net) |
| Riga | 1,206 | 883 |
| Riga planning region | 1,165 | 855 |
| Kurzeme | 922 | 684 |
| Zemgale | 915 | 681 |
| Vidzeme | 860 | 643 |
| Latgale | 751 | 565 |
In 2020 the average salary in Latvia in the private sector was 1,067 euros, and in the public sector – 1,103 euros. In general, income has increased in all sectors of the Latvian economy, but especially in health care and social protection – 13.2%. Next come administrative and support services (10.9%), construction (10.3%), professional, scientific and technical activities (9.8%), as well as water supply, sewerage and waste management (9.2%).
| Economic sector | Euro per month (gross) | Euro per month (net) |
| Financial and insurance | 2,083 | 1,489 |
| Information and communication | 1,731 | 1,260 |
| Public administration | 1,311 | 957 |
| Professional and scientific-technical activity | 1,217 | 927 |
| Mining | 1,175 | 851 |
| Health care and social work | 1,105 | 803 |
| Transportation and storage | 1,071 | 782 |
| Water supply, sewerage and waste management | 1,067 | 773 |
| Supply of electricity, gas, steam and air conditioning | 1,067 | 773 |
| Construction | 1,048 | 771 |
| Production | 1,040 | 768 |
| Agriculture, forestry and fishing | 1,035 | 764 |
| Administrative and support services | 974 | 725 |
| Wholesale and retail trade | 953 | 709 |
| Real estate operations | 920 | 681 |
| Art, entertainment and leisure | 895 | 673 |
| Education | 866 | 637 |
| Accommodation and meals | 767 | 569 |
| Other services | 819 | 638 |
Note. Information on average wages by region and sector is based on official data of the Central Bureau of Statistics of Latvia.
In conclusion, it should be noted that the income tax rate in Latvia on the wages of hired workers varies from 20 to 31.4%. At the minimum rate of 20% the annual income is taxed less than 20,004 euros per year, and at the maximum rate of 31.4% the income over 62,800. The rate of 23% is provided for annual income from 20,005 to 62,800 euros.
