In the 1st quarter, the rise in average wages and salaries continued to decelerate

News
Posted on 29 May 2017, 11:00
According to Statistics Estonia, in the 1st quarter of 2017, the average monthly gross wages and salaries were 1,153 euros and the average hourly gross wages and salaries 7.13 euros. Compared to the 1st quarter of 2016, the average monthly gross wages and salaries increased 5.7% and the average hourly gross wages and salaries 3.9%. The year-over-year growth in average monthly gross wages and salaries was 1.2 percentage points slower than in the previous quarter and the year-over-year growth decelerated for the fourth successive quarter.

The average monthly gross wages and salaries were 1,121 euros in January, 1,117 euros in February and 1,228 euros in March. Compared to the previous quarter, the average monthly gross wages and salaries fell 2.4%. This was mainly due to a decrease in irregular bonuses and premiums. Without irregular bonuses and premiums, the average monthly gross wages and salaries decreased 0.9% compared to the previous quarter.

In the 1st quarter of 2017, irregular bonuses and premiums decreased 30.1% per employee compared to the 4th quarter of 2016 and 2.4% per employee compared to the 1st quarter of 2016. Irregular bonuses and premiums affected the year-over-year increase in average monthly gross wages and salaries by 0.3 percentage points. Without irregular bonuses and premiums, the average monthly gross wages and salaries increased 6.0% compared to the 1st quarter of 2016.

Real wages, which take into account the influence of the change in the consumer price index, increased slower (2.6%) than the average monthly gross wages and salaries in the 1st quarter of 2017 compared to the 1st quarter of 2016 due to an increase in consumer prices. Compared to the same quarter of the previous year, real wages have been increasing since the second half of 2011.

The average monthly gross wages and salaries continued to be the highest in information and communication and in financial and insurance activities, respectively 2,004 and 1,917 euros. Compared to the 1st quarter of 2016, the average monthly gross wages and salaries increased the most in other service activities (e.g. activities of membership organisations, repair of household goods, beauty treatment), where the average monthly gross wages and salaries are the lowest (640 euros). The year-over-year growth of 16% in this economic activity is mainly due the increase in minimum wages from 430 euros to 470 euros. Larger year-over-year increases in average monthly gross wages and salaries also occurred in mining and quarrying (11%), electricity, gas, steam and air conditioning supply (11%), wholesale and retail trade (9%) and in information and communication (9%). Compared to the 1st quarter of 2016, average monthly gross wages and salaries decreased or remained relatively constant in administrative and support service activities (-1.3%), agriculture, forestry and fishing (-0.8%), human health and social work activities (-0.2%) and in financial and insurance activities (0.2%).

In the 1st quarter of 2017, the year-over-year growth in average monthly gross wages and salaries was faster than average in the Estonian private sector (6.6%) and in state organisations (6.6%) and slower than average in local government organisations (5.4%) and the foreign private sector (4.2%).

In the 1st quarter of 2017, by county, the average monthly gross wages and salaries were the highest in Harju (1,284 euros) and Tartu (1,140 euros) counties and the lowest in Jõgeva (850 euros), Põlva (840 euros) and Saare (816 euros) counties. The year-over-year growth of average monthly gross wages and salaries was the fastest in Võru (8.4%), Pärnu (7.9%) and Ida-Viru (7.7%) counties.

According to the Wages and Salaries Statistics Survey, the number of employees converted to full-time units increased 6.7% compared to the 4th quarter of 2016 and 2% compared to the 1st quarter of 2016. The biggest year-over-year increase in the number of employees in full-time units occurred in real estate activities (25%), administrative and support service activities (15%) and in information and communication (12%), and the biggest year-over-year decrease occurred in other service activities (12%) and in transportation and storage (7%). Over the course of a year, the number of employees converted to full-time units increased 3% in the private sector and decreased 1% in the public sector.

In the 1st quarter of 2017, the average monthly labour costs per employee were 1,556 euros and the hourly labour costs were 10.10 euros. Compared to the 1st quarter of 2016, the average monthly labour costs per employee increased 5.5%.
Average monthly gross wages and salaries per employee and the change, 1st quarter 2013–1st quarter 2017
Year Quarter Average monthly gross wages and salaries, euros Change compared to the same quarter of the previous year, %
2013 I 900 6.3
  II 976 8.5
  III 930 8.8
  IV 986 7.6
2014 I 966 7.3
  II 1,023 4.8
  III 977 5.0
  IV 1,039 5.3
2015 I 1,010 4.5
  II 1,082 5.8
  III 1,045 6.9
  IV 1,105 6.4
2016 I 1,091 8.1
  II 1,163 7.6
  III 1,119 7.1
  IV 1,182 6.9
2017 I 1,153 5.7

Average monthly gross wages and salaries per employee

Statistics Estonia conducts the Wages and Salaries Statistics Survey on the basis of an international methodology since 1992. In 2017, the sample includes 12,315 enterprises, institutions and organisations. The average monthly gross wages and salaries have been given in full-time units to enable a comparison of different wages and salaries, irrespective of the length of working time. Calculations of the monthly gross wages and salaries are based on payments for time actually worked and remuneration for time not worked. The hourly gross wages and salaries do not include remuneration for time not worked (holiday leave pay, benefits, etc.). In short-term statistics, the average gross wages and salaries are measured as a component of labour costs. Labour costs include gross wages and salaries, employer’s contributions and employer’s imputed social contributions to employees.

The statistics are based on the questionnaire “Wages and salaries”, the deadline of which was 18 April 2017. Statistics Estonia published the quarterly summary in 28 working days. For the statistical activity “Wages and salaries”, the main representative of public interest is the Ministry of Economic Affairs and Communications, commissioned by whom Statistics Estonia collects and analyses the data necessary for conducting the statistical activity.