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Earnings
2008 09 19

Real earnings in the whole economy in 2007 increased by 17 per cent

Statistics Lithuania informs that real earnings in the whole economy, individual enterprise included, in 2007 compared to 2006 increased by 17 per cent, in the public sector – by 13 per cent, in the private sector – by 19.9 per cent.

Average gross monthly earnings in the whole economy, individual enterprise included, in 2007 made LTL 1802.4 and compared to the previous year went up by 20.5 per cent; in the public sector, they were LTL 1891.9 and against 2006 grew by 15.9 per cent, while in the private sector they equaled LTL 1755.9 and against 2006 increased by 23.8 per cent.

In 2007, the most rapid increase in gross earnings was recorded in construction – 28.9 per cent, in hotels and restaurants – 24.8 per cent, wholesale and retail trade – 23.5 per cent.

The highest gross earnings in 2007 were received by the employees working in financial intermediation – LTL 3637.5, public administration and defence; compulsory social security – LTL 2491.3, mining and quarrying – LTL 2379.5. The lowest earnings were in hotels and restaurants – LTL 1033.8, agriculture, hunting and forestry – LTL 1411.2, other community, social and personal service activities – LTL 1501.

The increase in the average gross monthly earnings, individual enterprises included, was conditioned by the rise in wages and salaries since 1 January 2007 for the employees in budgetary institutions and organisations, as well as the rise in the minimum monthly salary and minimum hourly wage since 1 July 2007.

In 2007, the highest gross earnings were paid to employees in Vilnius county – LTL 2075.6, Klaipėda county – LTL 1764.8, Telšiai county – LTL 1735.7, Kaunas county – LTL 1720.2, while the lowest – in Tauragė county (LTL 1332.5).

The most rapid increase in average gross monthly earnings, individual enterprises included, in 2007 against 2006 was in these counties: Alytus – 22.7 per cent, Kaunas – 21.8 per cent, Šiauliai – 20.9 per cent, Tauragė – 20.7 per cent, while the slowest – in Utena county (16.7 per cent).

Average monthly net earnings in the whole economy, individual enterprises included, in 2007 made LTL 1351.9 and compared to 2006 increased by 23.7 per cent; in the public sector, they made LTL 1414.5 and compared to 2006 grew by 19.4 per cent; in the private sector, they made LTL 1319.3 and compared to 2006 grew by 26.7 per cent. A more rapid increase in net earnings was influenced by the increased basic non-taxable income rate (from LTL 290 to LTL 320) and the reduced income tax rate.

The average number of employees in the whole economy, individual enterprises included, in 2007 made 1163.7 thousand, and compared to 2006 increased by 3.8 per cent; in the private sector, it made 765.8 thousand and compared to 2006 increased by 6.5 per cent; in the public sector, it was 397.8 thousand and compared to 2006 decreased by 1.2 per cent.

Since 2004, annual labour statistics indicators have been calculated based on the data of the sample quarterly Earnings Survey and State Social Insurance Fund Board.

Table 1. Average number of employees, average monthly earnings and
indices by sectors 

Fig. 1. Average monthly gross earnings by economic sector

 Table 2. Average number of employees, average monthly gross earnings and
indices in the whole economy by county 

Fig. 2. Average monthly gross earnings by county

Table 3. Minimum rates¹, their changes and consumer price indices 

¹ Rates established by the Government of the Republic of Lithuania.
By Decision No. 543 of the 6 June 2007 of the Government of the Republic of Lithuania (Official Gazette, 2007, No. 65-2525), since 1 July 2007, the minimum monthly salary is LTL 700 and the minimum hourly wage is LTL 4.19.

Average number of employees is the sum of the number of employees working full-time for the whole month and that of employees working part-time not for the whole month recalculated to employees working full-time for the whole month. All employees working in the main and secondary workplace are included. The average number of employees is applied to calculate average earnings of employees.

Average monthly gross earnings refer to earnings before taxes (before deduction of the income tax and state social security contributions paid by the employee).

Average monthly net earnings refer to earnings after taxes (after deduction of the income tax and state social security contributions paid by the employee from average monthly gross earnings).

Index of gross earnings is calculated by dividing average monthly gross earnings of the reporting period by average monthly gross earnings of the base period.

Index of net earnings is calculated by dividing average monthly net earnings of the reporting period by average monthly net earnings of the base period.

Index of real earnings is calculated by dividing the index of net earnings of the corresponding period by the consumer price index of the same period.

Director General                                                                                         Algirdas Šemeta

Contact: Laimutė Maksimavičienė
Deputy Head, Labour Statistics Division
Tel. +370 5 236 4829
E-mail: Laimute.Maksimaviciene@stat.gov.lt  

© Department of Statistics to the Government of the Republic of Lithuania (Statistics Lithuania)
Reproduction and quoting are authorised provided the source is acknowledged.

More information on the issue is available in the publication on earnings in 2007, in publication Labour statistics year book 2007, in the Database of Indicators .

Document updated: 2008 09 19

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