Despite the remaining difference in mentalities, the flow of tourists from Russia and compatriots wishing to stay in Latvia for permanent residence did not dry up even during the years of cooling relations between the countries. If a visitor’s goal is not limited to a walk through the historical center of Riga or attending a concert in Dzintari, then first of all he will be interested in the average salary in Latvia and the likelihood of successful employment.
Job prospects in Latvia
If we focus on the structure of GDP formation, agriculture, woodworking, logistics, trade, real estate transactions, tourism and the public sector are significant for the country’s economy.
According to the Central Statistical Bureau of Latvia (CSB), the GDP figure for 2021 increased by 4.8% compared to 2021, and employment of the population aged 15 to 74 years reached 64.5%.
And if the overall indicator of engagement of the entire population increased by 1.6%, then in the youth segment the increase is not so noticeable - only 0.1%. This means that in 2021, only 33.1% of people aged 15 to 24 were able to work.
At the same time, the unemployment rate in Latvia (the number of people unsuccessfully looking for work) is not the highest in Europe: 6.9% overall and 10.8% among young people. In such conditions, migrants from other countries who did not come at the invitation of an employer will be welcome only in those areas where wages are considered too low for the native population.
Such professions include drivers, salespeople, support and maintenance personnel. In addition, there is one more condition on the path of someone who is interested in how to find a job in Latvia: according to the law, an employer can accept a foreigner into the team only if no Latvians respond to it within 30 days of the vacancy announcement.
In the first quarter, the average salary in Latvia increased by as much as 105 euros: for whom?
According to statistics, in the first quarter of 2021, the average salary in Latvia increased by 105 euros (+9.5%) and reached a record value of 1207 on paper, or 891 euros in hand. From whom? Economist Dmitry Smirnov talks about the official version of our general well-being in MK-Latvia.
Salary levels in Latvia
Over the past couple of years, there has been a tendency to reduce the gap between the average and minimum wages in Latvia. If at the beginning of 2021 the national average was more than twice the minimum, then by the end of 2021 the difference had decreased to 40%. It is worth noting that both values are gradually increasing.
Minimum income
Latvian legislation establishes that with normal working hours, the employer does not have the right to pay an employee less than the minimum wage established in Latvia (Article 61, adopted by the Seimas in 2001). From 2021, the minimum wage is approved.
In August 2021, at its meeting, it was decided to increase the lower wage level to 430 euros per month from January 1, 2021. The document stipulates that the established restriction will apply to all employers and will remain in effect for three subsequent annual periods.
Not least because of such legislative initiatives, the country is experiencing a steady increase in minimum indicators and more unstable dynamics of independent average values. Thus, according to statistics, about a third (30.5%) of Latvian specialists receive no more than 450 euros “net” every month. At the same time, the minimum wage in Latvia remains the same for 16.9% of workers.
The lowest incomes are among workers in the field of catering, real estate transactions, education, personal services, providing assistance with housework and repair work.
Those employed in the tourism industry and the arts (recreation, entertainment, accommodation for visitors) also have low salaries. The average gross salary for employed persons does not exceed 900 euros (before taxes).
If we consider the income of the population by region, statistics say that employees are paid the least in Latgale (708 euros per month, which does not exceed 70% of the national level). Although the dynamics of salary growth in this area is quite high - 9.2% versus a 7.1% increase in Riga.
Average wages
The Bureau of Statistics states that the accrued average salary in Latvia, according to data for the third quarter of 2021, amounted to 1006 euros (approximately 744 euros “net”), which is 8% higher than the value of 2021. There is a noticeable division in economic sectors.
| Sector | Average salary, euro | % growth |
| Total | 1006 | 8 |
| Commercial private enterprises | 992 | 7.7 |
| Government sector | 1036 | 8.5 |
It is worth considering that not only salaries, but also prices are growing every year. Therefore, minus the inflation rate of 2.9%, the growth of net income in various regions did not exceed 7% for 2021.
When compared by industry, the average accrued salary increased most noticeably in healthcare, mining, services and public catering.
| Industry | Average salary by industry before taxes, euros | % growth |
| Financial activities and insurance | 1932 | 0.4 |
| IT and communications | 1584 | 8.4 |
| Energy industry | 1272 | 5.2 |
| Governance and protection | 1260 | 6.9 |
| Mining industry | 1186 | 10.6 |
| Healthcare | 980 | 15.9 |
| Construction | 978 | 7 |
| Transportation and transit of goods | 962 | 6.3 |
| Real estate transactions | 843 | 6 |
| Education | 822 | 6.9 |
| Tourist accommodation and catering | 720 | 11.6 |
Maximum income of employees
Today, the average salary in Latvia ranges from 700 to 1400 euros and, according to statistics, only 25.7% of the working population receives it. A much smaller number of specialists can boast of incomes exceeding 1,400 euros per month. Such workers make up only 4.1% of the officially employed.
If we talk about where, geographically or in what field, maximum earnings await professionals, then several patterns can be identified:
- high salaries in Latvia by profession and industry remain in financial activities and insurance, telecommunications, and electricity supply;
- regional maximum – the highest earnings in Riga and the Riga region;
- by specialty and qualification - the highest salaries are for managers (up to 7,200 euros), leading specialists, programmers, engineers and financial analysts (within 1,500-2,000 euros).
In addition, access to positions with a decent salary will only be open to those who:
- speaks Latvian and, preferably, English;
- has a higher education obtained in the EU or a diploma from a university recognized in Europe;
- received a residence permit with an open work visa or an EU Blue Card confirming a residence permit or work permit within the borders of the European Union.
On top of that, the country has a legislative priority for employment for Latvian citizens. This is expressed in restrictive rules for hiring foreigners.
The employer is obliged to report the open vacancy to the State Employment Agency (NVA) to eliminate the possibility that a local specialist will be left without work. Next, a monthly check is carried out against the employer to determine the availability of a Latvian candidate for this post.
Only a small group of specialists are not subject to this rule:
- self-employed persons (entrepreneurs and founders of their own companies);
- artists, coaches and athletes, specialists involved in organizing competitions and cultural events;
- specialists in international agreements;
- foreign teachers with special accreditation.
What is the average salary in Latvia in 2021: what professions are most in demand
Latvia became part of the European Union in 2004, and 10 years later it was included in the eurozone. And although the amount of the minimum average salary can hardly be called astronomical, for a person from the post-Soviet space, labor migration to this state promises good prospects for development. The standard of living in Latvia is European, the people are friendly, and there are plenty of jobs for foreigners.
What distinguishes Latvia from other European countries is the closeness of the Latvian mentality to ours, so it will be much easier to adapt. Latvia is basically the same people from the CIS, so there will be no language barrier, even if you don’t know Latvian. Russian speech is very common here - in second place after the native language. Although the economy in Latvia is at a rather modest position and average level, compared to the rest of Europe, it is stable, and you can count on a confident regular income. The most in-demand professions in the country:
- top manager;
- truck driver;
- IT worker;
- programmer;
- director.
Young Latvians are eager to go to the “other” Europe, since they are ambitious people, and they quickly feel cramped in their native country. Because of this, a large number of jobs are freed up for foreigners, with a good minimum salary, I must say.
Salary depending on specialty
Average statistical indicators do not reflect the distribution of income of the population depending on profession and position. The highest salaries are offered to management and highly specialized specialists in the financial, information and IT fields.
In comparison, a teacher’s salary in Latvia may be several times lower and approach the legally established minimum (by the way, for education workers it was increased to 700 euros).
The ranking of net income by main areas looks something like this:
- first manager – 3,300 euros/month;
- programmer – 1,370 euros/month;
- sales manager – 1,233 euros/month;
- auditor – 1,188 euros/month;
- engineer – 1,079 euros/month;
- lawyer – 1,048 euros/month;
- marketer – 959 euros/month;
- electrician, welder – 750-790 euros/month;
- doctor – 749 euros/month;
- teacher – 731 euros/month;
- police officer – 727 euros/month;
- taxi driver, driver – 708 euros/month;
- nurse/nurse – 516 euros/month;
- auxiliary worker – 477 euros/month.
To determine an objective level of expected income in a narrower industry, you can use.
Since the country has a minimum wage limit for an employee’s normal workload during the month, the estimated hourly wage also cannot be lower than this indicator.
The derived indicator is used for partial loading. In this case, the salary of a part-time doctor may be less than 430 euros per month. However, per hour of employment it cannot be lower than 2.33-2.69 euros/hour.
The specific amount must be determined according to the rules of Articles 131 and 133 of the Latvian Labor Law and the standards of hours worked.
Difference by region
There is also a division on a regional basis. The highest salaries are predictably recorded in Riga, but if taken as a percentage, then in the capital there is a slowdown in income growth. In 2021, it barely exceeded 7%.
| Statistical region | Name in Latvian | Accrued wages in Latvia, euro/month | Growth rate in 2021,% |
| Total countrywide | LATVIA | 1006 | 8 |
| Riga | Rīgas statistiskais reģions | 1124 | 7.1 |
| Pririzhsky | Pierīgas statistiskais reģions | 957 | 9.7 |
| Kurzemsky | Kurzemes statistiskais reģions | 876 | 11 |
| Vidzemsky | Vidzemes statistiskais reģions | 818 | 8.9 |
| Zemgallian | Zemgales statistiskais reģions | 861 | 8 |
| Latgalian | Latgales statistiskais regions | 708 | 9.2 |
If we conduct a cross-comparison across regions in the context of specialties with different qualifications, it turns out that the salary in Riga and Latgale for an employee in the same position is strikingly different.
Average net salary, euro/month:
| Job title | Riga and the Riga region | Kurzeme | Zemgale | Latgale |
| Chief executive officer | 3302 | 3052 | 3031 | 2796 |
| Financial Director | 2173 | 1972 | 2022 | 1879 |
| Economist / commercial director | 2111 | 1860 | 1839 | 1604 |
| IT specialist, programmer | 2200 | 1900 | 1900 | 1700 |
| Pilot | 2526 | 2523 | 2564 | 2481 |
| Sailor | 2445 | 2442 | 2483 | 2400 |
| Junior cook, baker | 482 | 340 | 350 | 300 |
| Teacher, junior teacher | 472 | 372 | 378 | 340 |
| Cleaner, maid | 430 | 340 | 330 | 330 |
Salaries comparable to those in Riga can be boasted by hired workers in Jurmala: the average income here is 986 euros.
Taxes and net wages
In all employment contracts, the section on wages indicates only gross wages (before deduction of taxes and contributions). It is clear that at the end of the month the employee receives a much smaller amount.
The principle of withholding fees from employee income and accruing liabilities at the expense of the employer has been successfully applied not only in Russia. Salary taxes in Latvia are levied according to a similar scheme:
- income tax is withheld from earnings on a progressive scale: 20% from amounts not exceeding 1,667 euros, and 23% from amounts exceeding this mark, and for annual income above 55,000 euros the rate was raised to 31.4%;
- Social insurance contributions: 11% - deduction from accrued income at the expense of the hired person, 24.09% - at the expense of the employer.
It must be remembered that income tax is calculated after social contributions are deducted. In addition, workers with low earnings or those with disabled dependents are subject to a non-taxable minimum, updated in 2021: 230 euros per month for workers, 270 euros for pension recipients.
To simplify calculations, you can use.
Standard of living and dynamics of salary growth in Latvia
Relatively low salaries, especially in the field of consumer services and public catering, do not prevent Latvians from feeling quite comfortable in the country. This is explained by the fact that the cost of living in Latvia is not as high as in other EU countries.
Prices for basic products and utility bills make it possible to live even on a minimum wage.
The lion's share of costs falls on housing maintenance: if you don't have your own apartment, then renting even a one-room studio in Riga (not in the center) will cost 250-270 euros per month, plus payment of utilities (100-200 euros).
Otherwise, living costs in Latvia are comparable to the costs of Russians at home. A thrifty housewife can reduce food costs to 20 euros per week. If you don’t save, the grocery basket will cost 50 euros.
Transport in Latvia is somewhat more expensive than in Russia: a liter of gasoline costs 1-2 euros, travel on public transport costs 2 euros per trip. The cost of mobile communications and high-speed Internet will not exceed 30 euros per month.
However, the concept of a living wage is necessary for a foreigner not only for practical reasons and for budget planning. According to the rules of the Cabinet of Ministers (Noteikumi par ārzemniekam nepieciešamo finanšu līdzekļu apmēru un finanšu līdzekļu esības konstatēšanu), in order to extend a residence permit in Latvia, you will need to prove that a citizen of another state is able to support himself and his household.
The amount of required personal funds is calculated based on the average salary for the past year and varies depending on the category of the invited specialist:
- a member of the company's board must confirm earnings of 1,852 euros/month;
- employee from among the professions in demand – 1,111 euros/month;
- EU Blue Card holders need 1,389 euros/month;
- employees employed under a contract must show a salary of 926 euros/month or more;
- foreign pensioners need to confirm 576 euros of pension per month;
- for each minor family member - plus 129 euros/month in excess of the required income.
Average Pension in Latvia in 2021
- Pensioners living in Riga and living to 100 years of age have the right to claim a one-time payment of 150 euros.
- Providing free travel on public transport.
- Old people with a pension of less than 128 euros per month are paid a subsidy.
The average pension in Latvia in 2021 is 320.27 euros.
According to data for the past 2021, we can conclude that this year the average old-age pension in Latvia has increased by 18.53 euros. But it is worth understanding that not all pensioners receive such pension payments.
This value is an average, which is calculated based on the amount of total pension payments and the number of pensioners of this state.
Pension in Latvia in 2021
- The first is that it is made up of the amount of payments that you previously made while you were working.
- The second - this level consists of those funds that the state specifically allocated for future pensions.
- Third - this level involves the voluntary accumulation of funds, i.e. you, as a working person, could make contributions to the Pension Fund to provide yourself with another additional pension.
First, let's look at what the pension payment system consists of and what it includes. According to the latest data, about half a million people live in Latvia. And over the past few years, this figure has increased even more.
It is also worth noting that the number of people who have reached retirement age is growing every year, and therefore there is a need to adopt reform in this area.
Average pension in Latvia in 2021
There are certain benefits to buying a home as a senior. But only if a number of conditions are met. Pensioners living with a minor are entitled to a 50% discount on taxes. When purchasing real estate, foreigners are given the right to obtain a residence permit for 5 years.
The benefit is calculated by deduction from citizens' income into public or private funds. Some of them are closed. They are established by government agencies or large enterprises. The pension system consists of 3 levels.
