Average salary in Latvia

Due to steady growth over several years, the average salary in Latvia in 2021 came close to 1000 €, and in some areas exceeded it.

Economic situation and incomes of the population today

After the proclamation of independence, Latvia has carried out a series of reforms, which resulted in the formation of a stable functioning market economy. It enabled the country to successfully overcome the global crisis of 2008-2009. Latvia's GDP is characterized by annual growth in 2-3%: it is in the top 50 countries based on GDP per capita. Euro inflation remains at a traditionally low level (less than 2%).

This creates conditions for a constant increase in the income of the population. Most of it belongs to the middle class; only 0,7% population of Latvia.

Salary per month by occupation in 2021

The table illustrates the level of the average salary in Latvia before taxes for representatives of various professions in 2021.

Minimum

The statutory minimum wage in Latvia is430 € per month, or 2,48 € per hour, subject to full employment 8 hours 5 days a week. The employer is not legally entitled to reduce earnings below this limit.

The minimum wage in Latvia is higher than in Lithuania, Russia or Ukraine, but at the same time it is one of the lowest in the European Union.

Average

According to official data, the average gross salary (before taxes) in 2020 was 920 €... One third of this amount is accounted for by insurance and tax payments. The average Latvian gets his hands on from 600 to 700 €... Earnings in the private sector by almost 60 € higher than in the state.

The lowest level of income among the EU countries was noted only in Hungary, Romania, Lithuania and Bulgaria.

The growth of wages over the last year amounted to 7%. In some industries it exceeded 10%, for example, in agriculture, science and education, construction. A further increase in the income of the population is forecasted.

The average salary depends on many factors:

• the size of the enterprise;
• living place;
• specialty;
• work experience;
• age;
• worker gender.

Riga residents earn on 15% more inhabitants of the rest of Latvia, and men on 15-20% more women.

Average starting

When employed, the average starting salary of an employee is, as a rule, a quarter lower than the salary of a specialist with sufficient work experience. Foreign citizens of blue-collar occupations can count on for 600-800 € "Net" earnings.

Maximum

The maximum salary directly depends on the specialty and work intensity. The maximum earnings of a highly qualified IT worker may exceed 3000 €, executives and top managers earn 3000-5000 €. Maximum salary for a lawyer - up to 1700 €, seller (at maximum load) - up to 800 €.

Labor remuneration by city and region

The levels of average earnings in various regions of Latvia, with the exception of the capital, are approximately equal. The average salary of residents of Riga is almost 400 € exceeds the income of residents of the historical region of Latgale.

The table shows the levels of average wages in the statistical regions (cultural-historical areas) of Latvia before taxes.

Payroll taxes

Latvian legislation provides for the payment of taxes from citizens and residents of the country, i.e. persons staying on its territory for more than 183 days a year. The income of non-residents is taxed only if it is received within the borders of Latvia.

The total tax burden in the country is almost 35%

Latvia has one of the highest tax payments among the members of the European Union.

Income tax

According to the Law "On Taxes and Duties", from January 1, 2018, a progressive taxation system has been functioning, i.e. the amount of income tax grows in proportion to the increase in the size of wages. Basic rate - 23%... It applies to employees with annual gross income from 20,005 € to 55,000 €.

In addition to this amount, income tax may be levied in the following amounts:

• 20% with less than 20 000 €;
• 31,4% when earning more 55 000 €.

Basic income tax rate for legal entities - 20%.

The obligation to transfer income tax to the budget lies with the employer.

Social contributions and other taxes. What is tax free

Total social insurance rate - 35,09%from which the employer pays 24,09%, and the employee - 11%... With an annual income of over 48 600 €.

Other most significant tax payments include:

• toll: depends on the amount of carbon dioxide emissions from the engine into the atmosphere (for cars over 10 years old - on the engine size and year of manufacture);
• real estate sales tax: 15%;
• inheritance tax: from 0.5% to 15% (depending on the degree of relationship);
• property tax: 0,2-0,6% of the appraised value of the apartment per year, as a rule, up to € 500 per year.

Latvian legislation provides for the existence of a minimum income tax-free, the maximum value of which is 200 € (with a salary of less than 440 €)... When earning over 1000 € there is no non-taxable minimum.

The ratio of salary and living expenses

Real estate rental fees are fundamentally different in Riga and other cities in the country.

• The cost of a long-term rental of a 1-room apartment on the outskirts of the capital is 250-300 € per month.
• 2-room apartment in the center - over 500 €.
• In Liepaja, the monthly rent for a 1-room apartment in a residential area is about 100 €.

Utilities also account for a significant part of the costs: the maintenance of a 1-room apartment costs 100-150 € every month.

The average Latvian family of 3 spends on food 300-400 €... For example, the cost of lunch in a mid-priced cafe is 15-20 € per person.

A ticket for 1 ride on public transport costs 1 €, and a travel card for a month 45 €... Price of 1 liter of gasoline 1,3-1,4 €.

Medical care in Latvia is shareware, i.e. the state guarantees citizens a basic set of free medical services: calling an ambulance, treating children under 18 years of age. But when visiting a doctor or examining, there is often an additional fee.

Unemployment Rate and Prospects for Migrants

The unemployment rate in Latvia has a steady downward trend. According to the Central Statistical Office, since 2015 it has dropped from 10.2% to 8.1% able-bodied population. This figure is one of the highest among the EU countries and exceeds the unemployment rate of its neighbors. For example, in Lithuania - 7,3%, in Estonia - 5,5%.

A significant part of the young, economically active population of Latvia emigrates to the countries of Western Europe (France, Germany, Norway). This is due to incomes, which exceed the Latvian by 3-4 times.

The current situation on the labor market opens up prospects for labor migration in Latvia, which is primarily interested in representatives of workers and seasonal specialties.

The balanced ratio of incomes and expenses of residents of Latvia ensures the maintenance of the quality of life of the population at a level that is close to the European average.