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 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 2021.
Minimum salary in Latvia
According to official figures from the Latvian government, the minimum wage in Latvia in 2021 is 500 euros per month. This is the lowest figure among the Baltic countries. In Lithuania, workers receive a minimum of 642 euros, and in Estonia 584. Compared to all EU member states, the minimum wage is lower than in Latvia only in Bulgaria – 650 Bulgarian levs per month, which is equivalent to 330 euros. The highest rate is in Luxembourg – 2,201.93 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 the official statement of the Latvian Ministry of Finance, in 2022 the level of the minimum wage in the country may be increased to 560 euros.
Average salary in Latvia
According to official figures from the Latvian Central Statistical Bureau, the average salary in Latvia in 2021 is 1,143 euros per month before taxes. Compared to last year, the earnings of Latvian workers increased by 66 euros or 6.2%. After taxes, the average salary in Latvia is 841 euros (73.6% of gross income). During the year, net wages increased by 6.1%. At the same time, taking into account inflation, the real growth of wages amounted to 5.9%.
Important. Median average salary in Latvia in 2021 is 893 euros before tax and 662 euros after all deductions.
| Region | Euro per month (gross) |
| Riga | 1,276 |
| Riga planning region | 1,108 |
| Kurzeme | 971 |
| Zemgale | 971 |
| Vidzeme | 914 |
| Latgale | 793 |
In 2021, the average salary in Latvia in the private sector was 1,138 euros, and in the public sector – 1,156 euros. In general, incomes increased in almost all sectors of the Latvian economy, but especially in the field of professional and scientific and technical activities – 11.1%. Next are the areas of mining (9.7%), health care and social work (9.6%). Revenues declined in the accommodation and meals services sector, as well as in education, arts, entertainment and leisure.
| Economic sector | Euro per month (gross) |
| Financial and insurance | 2,161 |
| Information and communication | 1,866 |
| Supply of electricity, gas, steam and air conditioning | 1,413 |
| Public administration | 1,371 |
| Professional and scientific-technical activity | 1,353 |
| Mining | 1,289 |
| Health care and social work | 1,211 |
| Water supply, sewerage and waste management | 1,137 |
| Construction | 1,130 |
| Production | 1,109 |
| Agriculture, forestry and fishing | 1,082 |
| Transportation and storage | 1,068 |
| Administrative and support services | 1,037 |
| Wholesale and retail trade | 999 |
| Real estate operations | 953 |
| Art, entertainment and leisure | 931 |
| Education | 913 |
| Accommodation and meals | 726 |
| Other services | 935 |
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.
