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.

Salary in Latvia

Latvia is home to only 1.9 million people, and the labor force is about 975 thousand. The unemployment rate is about 7–8%. 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 2022.

Minimum salary in Latvia

According to official figures from the Latvian government, the minimum wage in Latvia in 2022 is 500 euros per month. This is the lowest figure among the Baltic countries. In Lithuania, workers receive a minimum of 730 euros, and in Estonia 654. Compared to all EU member states, the minimum wage is lower than in Latvia only in Bulgaria – 710 Bulgarian levs per month, which is equivalent to 365 euros. The highest rate is in Luxembourg – 2,256.95 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 (paragraph two) of the Latvian Labor Law, the level of the minimum wage in Latvia is established by the Cabinet of Ministers. Until 2021, the rate did not change for 3 years. The last increase took place in 2018 – from 380 to 430 euros. In 5 years, the minimum wage in Latvia has increased by 130 euros, and in 10 years by 215 euros. According to an official statement of the Latvian Ministry of Finance, in the near future the level of minimum wage in the country could be raised to 560 euros.

Average salary in Latvia

According to official figures from the Latvian Central Statistical Bureau, the average salary in Latvia in 2022 is 1,277 euros per month before taxes. Compared to last year, the earnings of Latvian workers increased by 135 euros or 7.1%. After taxes, the average salary in Latvia is 939 euros (73.5% of gross income). During the year, net wages increased by 11.7%. At the same time, taking into account inflation, the real growth of wages amounted to 8.1%.

Important. Median average salary in Latvia in 2022 is 994 euros before tax and 740 euros after all deductions.

AVERAGE SALARY IN LATVIA BY REGION

Region Euro per month (gross)
Riga 1,434
Riga planning region 1,225
Zemgale 1,089
Kurzeme 1,085
Vidzeme 1,010
Latgale 896

In 2022, the average salary in Latvia in the private sector was 1,273 euros, and in the public sector - 1,293 euros. Overall, earnings increased in almost all sectors of the Latvian economy, but especially in health care and social work - 28.2%. Similar trends were also observed in mining and quarrying, manufacturing and information and communication services.

SALARY IN LATVIA BY SECTORS OF ECONOMY

Economic sector Euro per month (gross)
Financial and insurance 2,282
Information and communication 2,088
Professional and scientific-technical activity 1,598
Health care and social work 1,553
Supply of electricity, gas, steam and air conditioning 1,526
Public administration 1,467
Mining 1,350
Construction 1,249
Production 1,201
Water supply, sewerage and waste management 1,180
Agriculture, forestry and fishing 1,177
Transportation and storage 1,152
Administrative and support services 1,126
Wholesale and retail trade 1,126
Art, entertainment and leisure 1,060
Real estate operations 1,046
Education 1,012
Accommodation and meals 795
Other services 1,060

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 78,100. The rate of 23% is provided for annual income from 20,005 to 78,100 euros.

Add comment


Security code
Refresh

© 2020–2023 WageCentre.com. All Rights Reserved.