Average Salary in Latvia 2022
How much money does a Latvian worker make?
The average monthly salary for a Latvian worker is 1,300 LVL. In terms of salary, the range is between 330 and 5,810 LVL.
This is the average monthly wage, which includes accommodation, transportation, and other perks. Depending on a person’s field of work, salaries might vary greatly. If you’re curious about the pay for a certain position, you may find it listed here. The minimum monthly wage in Latvia is set at 360 LVL.
Latvian Income Distribution
There are 330 LVL to 5,810 LVL monthly salaries in Latvia. The average monthly salary in Latvia is 1,060 EUR. The lowest 10% earn 330 LVL and the highest 10% earn 5,810 LVL.
Take note that this average salary also depends on the city you live and work in. Riga, being the capital city, offers the highest average salary at 1,290 LVL followed by Daugavpils with an average salary of 1,070 LVL. On the other hand, the lowest salaries can be found in Liepaja and Rezekne where the average salary is only 950 LVL.
The cost of living in Latvia is relatively low compared to other European countries. For example, a meal in a restaurant costs around 7-10 LVL, a loaf of bread costs 0.80 EUR, and a cappuccino costs 2.50 LVL. A one-bedroom apartment in the city centre costs around 430 LVL while a monthly public transport ticket is only 20 LVL. Overall, the cost of living in Latvia is 18% cheaper than in Estonia, 25% cheaper than in Lithuania, and 30% cheaper than in Sweden.
More than half (50%) of the population earns less than 1,200 LVL each month, while less than half (50%) earns over this amount. The median monthly salary in Latvia is 1,200 LVL.
This means that if you take all the salaries of all the people in Latvia and put them in order from lowest to highest, the person in the middle would earn 1,200 LVL each month.
As you can see, the average salary in Latvia is 1,060 EUR while the median salary is 1,200 LVL. This means that the salaries are relatively evenly distributed with a slight skew towards higher salaries. The highest 10% of earners make 5,810 LVL per month while the lowest 10% of earners make only 330 LVL per month. However, 50% of the population earns less than 1,200 LVL each month.
Most people make more than 690 LVL, although a quarter of the population is earning less. The bottom 10% make only 330 LVL, while the top 10% make 5,810 LVL.
This means that if you take all the salaries of all the people in Latvia and put them in order from lowest to highest, the person at the 90th percentile would earn 5,810 LVL each month. This is 3.5 times more than the person at the 10th percentile who earns only 1,610 LVL each month.
To put it another way, 90% of the population earns less than 5,810 LVL per month while 10% of the population earns more than this amount.
Income inequality is relatively high in Latvia with a Gini coefficient of 0.34. This means that 34% of the total income in Latvia is earned by the top 10% of earners. The bottom 10% of earners only make 3% of the total income.
What are the key differences between the average wage and the median salary?
Both average wage and median income are indicators. The average wage is calculated by summing all the wages earned and dividing by the number of people. The median income is the middle value when you put all the incomes in order from lowest to highest.
The key difference is that the average wage can be skewed by a few very high earners while the median income is less affected by outliers. For example, if only 1% of the population earns 5,000 LVL per month, this will skew the average wage upwards but it will have little effect on the median income.
Comparison of Wages for Workers with Diverse Levels of Experience in Latvia
How does salary progress for workers in Latvia?
Workers in Latvia receive a salary increase of approximately 7% every year on average. The size of the salary depends on many factors, including the level of experience.
The average salary for workers with up to 3 years of experience is 538 LVL per month. For those with 4-6 years of experience, the average salary is 633 LVL per month. Those with 7-9 years of experience earn an average of 720 LVL per month, and those with 10 or more years of experience earn an average of 804 LVL per month.
Thus, as workers gain more experience, they can expect to see their salaries increase accordingly. This is in line with what is seen in other countries as well. workers with more experience are typically paid more than those who are just starting in their careers.
Comparing Salaries Based on Education in Latvia
Is there a correlation between education level and salary?
In Latvia, salaries vary depending on educational attainment. The table below compares the average gross monthly salaries of Latvians with different levels of education in 2022.
As can be seen from the table, those with higher levels of education tend to earn more than those with lower levels of education. For example, the average gross monthly salary for a Latvian with a university degree is 1,227 LVL, while the average gross monthly salary for a Latvian with just a secondary school education is only 674 LVL.
Of course, many other factors can affect someone’s salary, such as their field of work, years of experience, and so on. But in general, it seems that having a higher level of education does lead to higher salaries in Latvia.
Gender-Based Salary Comparisons in Latvia
Male workers in Latvia are paid 5% more than their female colleagues on average across all sectors of the economy. This gender pay gap is larger than the EU average of 3%.
When broken down by sector, the largest pay gaps are found in information and communication (9%), manufacturing (8%) and energy (7%). The smallest disparities are observed in education (2%), human health and social work (1%) and wholesale and retail trade (0%).
Latvia has made progress in recent years in narrowing its gender pay gap. In 2010, women were paid 15% less than men on average. This figure has decreased steadily over time and is now 5%.
The government has introduced several policies to help reduce the gender pay gap further. These include measures to encourage flexible working arrangements, increased opportunities for career development and training, and greater transparency around pay and benefits.
Salary Increase Percentage for Latvian Workers
How much are Latvia’s yearly raises? How frequently do workers get a pay increase?
Workers in Latvia may expect to get an 8% pay raise every 18 months. The minimum wage in Latvia is currently 430 LVL per month, and the average worker’s salary is 1,500 LVL per month.
Take note that this also varies from company to company and also on the position that you are working in. Some companies would offer more or lesa s percentage of salary increase. This is just a general overview.
Industry Growth Rate in Latvia 2022
- Travel – 5%
- Tourism – 4%
- Healthcare – 5%
- Banking – 2%
- Education – 7%
- Construction – 6%
The average salary in Latvia will continue to grow in 2022, as the economy is expected to expand. The tourism and healthcare industries are expected to see the strongest growth, while the banking sector is forecast to grow more slowly.
Salaries in all sectors are expected to increase, with the highest average salaries expected in the tourism and healthcare industries.
Increase in Salary Per Year by Experience Level
Junior workers in Latvia may receive a 3-5% salary increase, while the salary of a more experienced worker may grow by 5-7%. The highest salary growth is in the IT sector, where workers with 0-5 years of experience can expect an 8% salary increase.
There are significant differences in average salaries between regions in Latvia. In Riga, the average monthly salary is LVL 1 103, while in Latgale it is only LVL 722.
The highest salaries are paid in the information and communication sector – LVL 1 664 on average. The lowest-paid sector is agriculture, forestry and fishing – LVL 491 on average.
Payout Rates for Bonuses and Incentive Payouts in Latvia
While just 47% of Latvian employees reported receiving any bonuses or incentives in the preceding year, 53% of those polled claimed to have not received any bonuses or incentives at all.
Bonuses ranged from 4% to 5% of yearly income for those who received them. The median bonus was approximately EUR 250. The top 25% of earners received bonuses that were worth 6% or more of their yearly income, while the bottom 25% received bonuses that were worth 3% or less of their annual salaries.
Incentive payouts were much less common, with only 8% of respondents saying they had received such a payout in the last year. The median value of incentive payouts was EUR 150.
Overall, it appears that bonuses and incentive payouts are not particularly common in Latvia. However, for those who do receive them, they can be substantial.
Various types of Bonuses and Incentives
Individual Bonuses Based on Performance
Discretionary bonuses are subject to organizational discretion and can be given at any time. They may be awarded to recognize an employee’s great work or to motivate the individual to maintain high levels of productivity.
These types of bonuses are often used in commission-based sales jobs, as they provide extra motivation for employees to achieve sales targets.
Individual bonuses are granted to workers that have demonstrated exceptional performance or have achieved set targets.
The amount of the bonus varies depending on the company and position but is typically a percentage of an employee’s salary.
Company Performance-Based Compensation
Organizations may also offer bonus payments that are based on the overall performance of the company. These can be given to all employees, or just to those who have contributed significantly to the company’s success.
For example, a company that has had a successful year may give all of its employees a bonus equal to 10% of their salary.
Incentive payments may also be given to employees to encourage them to achieve specific goals. These could be individual or team-based targets and may relate to sales figures, productivity levels, or other measures of success.
Seasonal or End-of-Year Payouts
Some companies offer bonuses during seasonal or end-of-year periods. This could be a one-time payment, or it may be added to an employee’s regular salary
For example, a business may give all of its staff a Christmas bonus equal to one week’s pay. Some organizations also offer summer bonuses, which are typically smaller than end-of-year payments.
Payout Bonuses Comparison based on Profession in Latvia
What makes a job worth the high pay and generous bonuses?
In Latvia, there are many different professions, each with its own set of responsibilities, level of experience required, and average salary. Some of the highest paying jobs in Latvia include surgeons, anesthesiologists, and psychiatrists.
Surgeons make an average annual salary of about 174,000 LVL, while anesthesiologists earn approximately 157,000 LVL per year. Psychiatrists earn an average salary of approximately 150,000 LVL annually.
While these are some of the highest paying jobs in Latvia, other professions also offer high salaries and bonuses. For example, investment bankers in Latvia make an average annual salary of about 140,000 LVL. This profession requires a high level of experience and education, but the payoff is significant. Other high-paying jobs in Latvia include marketing managers, sales managers, and financial analysts.
Marketing managers make an average annual salary of about 130,000 LVL. Sales managers earn an average of 120,000 LVL per year. Financial analysts make an average salary of approximately 110,000 LVL annually. Many different factors contribute to how much someone earns in Latvia. Education, experience, and the specific profession all play a role in determining salary levels.
However, overall, Latvia is a country with high wages and generous bonuses when compared to other countries around the world. If you’re looking for a high-paying job, Latvia is certainly a good place to start your search!
Seniority-Level Bonuses Compared in Latvia
Although average salaries in Latvia are low compared to other countries, there are significant differences in pay based on experience and seniority. For example, entry-level employees earn an average salary of LVL 663 (EUR 933), while those at the management level earn LVL 1,831 (EUR 2,57) per month.
In addition to experience, another factor that affects earnings is education. Employees with a higher education degree earn an average of LVL 1,028 (EUR 1,441) per month, while those with secondary education earn an average of LVL 697 (EUR 974) per month.
These numbers show that there is a significant difference in earnings based on experience and education level. However, it is important to note that these are only averages and some employees may earn more or less than the amounts stated above.
In addition to experience and seniority bonuses, Latvian employers also offer some benefits to their employees. These benefits can include health insurance, paid vacation days, and transportation allowances. For example, the average Latvian worker receives 10 paid vacation days per year.
Salary Information for Prominent Careers in Latvia
Careers such as business, architecture, and engineering are quite prominent in Latvia. The average salary for these careers is around LVL 1,714 (EUR 2,400).
If you are looking for a career in Latvia that is both financially and professionally rewarding, then a business-related field may be the best option for you. The average salary for business professionals in Latvia is LVL 1,714 (EUR 2,400).
Architecture is another popular career choice in Latvia. The average salary for architects is also LVL 1,714 (EUR 2,400).
Engineers are in high demand in Latvia. The average salary for engineers is slightly higher than other professions at LVL 1,857 (EUR 2,600).
Overall, the average salary in Latvia is quite good. Many careers offer high salaries and Latvia is a great place to live and work.
If you are considering a move to Latvia, then be sure to research the average salary for your desired profession. You can also use this information to negotiate a higher salary when applying for jobs in Latvia.
Latvian Wage Comparisons Per City
In Riga, the average salary of employees is around 1,400 LVL and the minimum wage is 580 LVL. In Daugavpils, the average salary is slightly lower at 1,210 LVL while the minimum wage is still 580 LVL. However, in Liepaja, the average salary is 1,170 LVL and the minimum wage is only 430 LVL.
The minimum wage in Latvia is currently set at 580 LVL per month for all workers over the age of 18. This figure is set to increase to 610 LVL in 2021 and 630 LVL in 2022. The minimum wage in Latvia is lower than the average salary in all three of the country’s largest cities.
The average salary in Riga is 1,400 LVL per month, while the minimum wage is 580 LVL. In Daugavpils, the average salary is slightly lower at 1,210 LVL, but the minimum wage remains at 580 LVL. In Liepaja, however, the average salary drops to 1,170 LVL and the minimum wage decreases to 430 LVL.
Latvia’s Standard Hourly Rate
In Latvia, the average hourly earning is 8 LVL. The monthly minimum wage is set at 280 LVL. The average monthly salary in Latvia is about 700-800 LVL, which is around 400 EUR. The average Latvian worker earns about 1,000 EUR per month.
The cost of living in Latvia is relatively low compared to other European countries. For example, a meal in a restaurant costs about 7-10 EUR, while a cappuccino coffee costs around 2 EUR.
In general, the salaries in Latvia are lower than the salaries in Western European countries. However, the cost of living is also lower, which makes it possible to live a comfortable life on a relatively modest salary.
Latvia Government vs. Private Sector Pay
Averaging across all sectors, government workers in Latvia earn 7% more than their private-sector colleagues. The pay gap is even larger when comparing the top 10% of earners in each sector – government workers earn almost 18% more.
This difference is due in part to the type of jobs typically found in the public sector. For example, a higher proportion of Latvian government employees are employed as professionals (such as lawyers, doctors and teachers), while a greater share of private-sector workers is employed in low-skilled jobs.
Overall, these findings suggest that government workers in Latvia earn more than their counterparts in the private sector. However, it is important to note that this may be due in part to the types of jobs typically found in each sector.
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