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 1.8 million people, and the labor force is about 975 thousand. The unemployment rate is about 6–7%. 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 2023.
Minimum salary in Latvia
According to official figures from the Latvian government, the minimum wage in Latvia in 2023 is 620 euros per month. This is the lowest figure among the Baltic countries. In Lithuania, workers receive a minimum of 840 euros, and in Estonia 725. Compared to all EU member states, the minimum wage is lower than in Latvia only in Bulgaria – 780 Bulgarian levs per month, which is equivalent to400 euros. The highest rate is in Luxembourg – 2,447.07 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 190 euros, and in 10 years by 335.4 euros.
Average salary in Latvia
According to official figures from the Latvian Central Statistical Bureau, the average salary in Latvia in 2023 is 1,443 euros per month before taxes. Compared to last year, the earnings of Latvian workers increased by 166 euros or 11.5%. After taxes, the average salary in Latvia is 1,055 euros. During the year, net wages increased by 4%. At the same time, given the high inflation in 2022, the real growth in wages of Latvians has decreased markedly.
Important. Median average salary in Latvia in 2023 is 1,081 euros before tax and 806 euros after all deductions.
| Region | Euro per month (gross) |
| Riga | 1,608 |
| Riga planning region | 1,414 |
| Kurzeme | 1,221 |
| Zemgale | 1,212 |
| Vidzeme | 1,157 |
| Latgale | 1,018 |
In 2023, the average salary in Latvia in the private sector was 1,441 euros, and in the public sector – 1,420 euros. Overall, earnings increased in almost all sectors of the Latvian economy, but especially in health care and social work. Similar trends were also observed in mining and quarrying, manufacturing and information and communication services.
| Economic sector | Euro per month (gross) |
| Information and communication | 2,401 |
| Financial and insurance | 2,392 |
| Professional and scientific-technical activity | 1,843 |
| Public administration | 1,715 |
| Supply of electricity, gas, steam and air conditioning | 1,655 |
| Health care and social work | 1,608 |
| Mining | 1,554 |
| Water supply, sewerage and waste management | 1,424 |
| Production | 1,382 |
| Agriculture, forestry and fishing | 1,381 |
| Transportation and storage | 1,366 |
| Construction | 1,359 |
| Administrative and support services | 1,293 |
| Wholesale and retail trade | 1,272 |
| Art, entertainment and leisure | 1,262 |
| Education | 1,164 |
| Real estate operations | 1,152 |
| Accommodation and meals | 941 |
| Other services | 1,173 |
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.
