While statistics show stable salary growth and economists talk about the normalization of the labor market, many working residents of Latvia feel the reality quite differently.
On paper, the numbers are growing, but in everyday life, this is not felt — salary increases are "eaten up" by rising prices, bills, and food expenses. This is especially painfully felt by those who perform physically demanding and necessary work for society but receive a salary that barely covers living expenses after taxes. Maris shares his story — he works physically but earns very little. Where is the justice in this?
"I work physically hard. Every day. After work, my back, arms, and legs hurt. This is a job that requires strength, endurance, and responsibility. And for this, I receive 1150 euros before taxes. On paper, the amount looks larger than it actually is — after taxes, significantly less remains. I believe this is abnormal.
Everywhere they talk about salary growth. Statistics show percentages, graphs, and optimistic forecasts. But where do you see this growth? We, the working people, do not feel it. The only thing we feel is the rise in prices: in stores, at gas stations, and especially this winter — in bills.
You go into a store — 50 euros disappear in a couple of days. Bread, milk, meat, vegetables — everything is getting more expensive. You can forget about quality food altogether. In winter, bills rise, while salaries do not keep up. And if there are children or a loan — the tension is constant: will it last until the end of the month? And often it does not. On payday, you pay everything, buy your child a chocolate bar — and for the last two weeks until the next payday, you don’t know how to buy milk.
We work, pay taxes, build this country, but it feels like it only gets harder every year. Salaries grow on paper, but life in reality becomes more expensive. And then the question arises — why is physically demanding, necessary work for society valued so low? We do not feel salary growth. We only feel that we are not valued," writes Maris.
It was previously reported that almost half — 44% of residents of Latvia — believe that their salary will not increase this year, according to representatives of Citadele Bank citing survey results. At the same time, 47% of residents expect a salary increase of up to 10%. A more significant increase — over 10% — is hoped for by 8% of respondents. These data reflect a more pragmatic attitude among working people: after a more rapid salary growth last year, society's expectations are becoming more moderate.
According to data from the Central Statistical Bureau, in the third quarter of 2025, the average gross salary in Latvia reached 1835 euros, increasing by 132 euros or 7.8% over the year, while the average net salary grew even faster — by 10.5%, reaching 1361 euros. In the European Union, salaries are not rising as quickly — in the eurozone, labor costs increased on average by about 3–4% per year.
The chief economist of the bank, Karlis Purgailis, notes that such a pace of salary growth creates increasing challenges for enterprises, however, it is expected that wage growth in Latvia will continue to exceed the average European indicator, although it will become more moderate than in previous years.
He predicts that this year salaries may rise by about 6.5%.
"Overall, the survey data signal a normalization of the labor market after the rapid upheavals of previous years. Workers' sentiment is becoming more pragmatic — salary growth is increasingly seen not as a given action by employers, but rather as an additional bonus," Purgailis believes.
The survey results show that expectations for salary growth vary significantly depending on age, while gender has little impact on these expectations. The most optimistic are young working people aged 18 to 29 — only a third of them do not expect a salary increase, while a relatively large part hopes for growth of more than 10%. This is characteristic of the beginning of a career, when salary dynamics are more often determined by job changes, professional growth, and competition for employees.
With age, expectations become more cautious. In the age group of 50 to 59 years, already half of the respondents do not expect any salary increase, and among people aged 60 to 74, more than half of respondents hold this opinion. This indicates more limited opportunities for salary growth in the later stages of a career, as well as a greater focus on stability and security.
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