The main indicators on earnings have been presented
On 4 March, the main indicators on earnings were presented at the State Data Agency. The presentation was made by Deputy Director General Inga Masiulaitytė-Šukevič. Labour law expert Evelina Trukšinienė shared her insights.
Over a year, average net monthly earnings grew by 10 per cent
In IV quarter 2023, against the same period of 2022, average gross monthly earnings (before employee tax) in the whole economy increased by 11 per cent and amounted to EUR 2,110. In IV quarter 2023, average net monthly earnings (after employee tax) amounted to EUR 1,304 and showed a year-on-year increase of 10 per cent.
The real earnings index shows the purchasing power of employees after considering changes in consumer prices, otherwise known as inflation. In IV quarter 2023, against the same period of 2022, this indicator in the whole economy increased by almost 8 per cent. When prices grow faster than net earnings, fewer goods and services are purchased, but when earnings grow faster than prices, an increase in real earnings is observed.
In IV quarter 2023, average net monthly earnings in the public sector were by EUR 150 higher than in the private sector
In IV quarter 2023, net earnings in the public sector amounted to EUR 1,410, which is by EUR 150 more than in the private sector (EUR 1,260). Over a year, average net monthly earnings in the public sector grew faster than in the private sector – by 12 and 9 per cent respectively.
A year-on-year increase in net earnings was observed for all activities
In IV quarter 2023, against the same period of 2022, an increase in earnings was recorded in all economic activities: from 6 per cent (real estate activities) to 17 per cent (administrative and support service activities).
The largest earnings were recorded in enterprises engaged in information and communication (EUR 2,281), financial and insurance (EUR 2,010), professional, scientific and technical activities (EUR 1,640), while the smallest – accommodation and food service activities (EUR 919), real estate activities (EUR 1,041), other service activities (around EUR 1,072).
Net earnings of women were by EUR 77 lower than those of men
In IV quarter 2023, net earnings of men amounted to EUR 1,342, which is by EUR 77 more than those of women (EUR 1,265). In IV quarter 2023, against the same period of 2022, net earnings of women grew faster than those of men – by 11 and 9 per cent respectively. Over a year, the gender pay gap has narrowed by EUR 15.
The largest gender pay gap was recorded for financial and insurance activities
The largest gender pay gap was observed in enterprises engaged in financial and insurance activities – 31 per cent, human health and social work activities – 27 per cent, information and communication – 24 per cent. Net earnings of women have exceeded those of men only in two economic activities (transportation and storage, mining and quarrying), thus the difference is negative and stands at 17 and 3 per cent respectively.
Net earnings gap between regions was EUR 218
In the Capital Region, average net monthly earnings amounted to EUR 1,423 and, compared to the same period of 2022, grew by 9 per cent. In the Central and Western Lithuania Region, net earnings increased by 11 per cent and stood at EUR 1,205. In IV quarter 2023, net earnings gap between these regions was EUR 218 and, over a year, remained almost unchanged (decreased by around EUR 4).
In IV quarter 2023, the largest earnings were recorded in Vilnius city municipality, the smallest – in Zarasai municipality
In IV quarter 2023, an increase in earnings was observed in all municipalities. In IV quarter 2023, the largest average net monthly earnings were in Vilnius city (EUR 1,467), the smallest – in Zarasai district municipality (EUR 917). Net earnings gap between Vilnius city and Zarasai district municipality was EUR 550. In Vilnius, Kaunas and Klaipėda city muncipalities, net earnings exceeded the national earnings by EUR 163, EUR 70 and EUR 1 respectively.
Please see the video and slides of the presentation (in Lithuanian).
Evelina Trukšinienė pointed out that labour law specialists often use statistical data in their daily work. One of the examples is when an employment contract does not correctly state the employee’s salary: “When salary is vaguely determined and an employee needs to prove that the employee earns more than the minimum, it is possible to refer to statistical data both for the country, the region, and by type of economic activity, and prove that such a minimum monthly wage could not have been set.”
The expert shared how the average earnings indicator is applied in practice: “For us as lawyers, this indicator is very important in general, as the recommended rates for services are linked to the national average earnings. Depending on what they are, the courts award costs to the successful party accordingly. Although these are only recommendations by the Minister of Justice, the courts take a very strict view of them.”