While Europe prepares for new pay transparency rules, most employees in Latvia already experience distrust towards the pay system — and often do not understand how their income is formed.
In Latvia, the issue of unequal pay remains widespread. According to a survey conducted by the online recruitment company Alma Career Latvia, 68% of workers in Latvia have encountered situations where they believe their pay was unfair. This data reflects the situation in the country prior to the implementation of the European Union directive on pay transparency, which will impose stricter requirements on employers regarding salary disclosure.
This problem particularly affects women — 74% of surveyed women indicated that they had experienced unequal pay, while among men, 51% acknowledged such experiences. This confirms that wage inequality in Latvia continues to have a pronounced gender character.
At the same time, the data reveals a significant lack of information — almost half, or 48%, of workers do not know how their salary is determined. This indicates a lack of transparency that may contribute to distrust and dissatisfaction in the workplace.
"The experience of unequal pay in Latvia is not isolated cases, but a systemic problem. It is particularly concerning that employees often lack clear information about how their salary is determined. This creates a breeding ground for distrust and can affect both employee engagement and loyalty," notes Krista Rozina, Marketing and Communications Manager at Alma Career Latvia.
Analyzing data across various job groups, it is evident that the sense of inequality is most pronounced among employees who have the least influence over their pay — lower-level workers. At the same time, these groups also exhibit the least understanding of salary formation principles.
"The lower the position, the greater the uncertainty regarding pay issues. This means that transparency in organizations is often a privilege rather than a standard," adds Rozina.
Considering the upcoming changes, organizations should already start evaluating their pay systems and communication with employees.
The survey was conducted at the end of 2025 by the recruitment company Alma Career Latvia, involving around 500 workers in Latvia who shared their experiences and attitudes towards the formation and transparency of pay.