In 2022, average monthly gross wages and salaries at Estonian companies, institutions and organizations increased 8.9 percent on year to €1,685. Average real wages, however, decreased by 8.8 percent to €1,385 last year, Statistics Estonia said Monday.
In particularly difficult economic conditions, it's worth monitoring not just the average but also real wages, Statistics Estonia analyst Argo Tarkiainen said according to a press release.
"Real wages, which are calculated taking the consumer price index (CPI) into account, reflect purchasing power, i.e. the amount of goods and services that can be purchased for the wages earned," Tarkiainen explained. "So we can see that while average wages and salaries are steadily increasing, people's purchasing power is still lower than it was before the crisis."
Over the year, average monthly gross wages and salaries were once again highest in information and communication (€3,035), financial and insurance activities (€2,708) and energy (€2,392), and lowest in real estate (€1,214) and accommodation and food service activities (€1,058).
Average monthly wages and salaries increased the most, meanwhile, in accommodation and food service activities (by 15.6 percent) and manufacturing (13.2 percent). Wage growth slowed, however, in human health and social work (by 4.4 percent) and other service activities (1.2 percent).
Regionally, average monthly gross wages and salaries in 2022 remained highest in Harju County (€1,834) and Tartu County (€1,690) and lowest in Valga County (€1,185) and Hiiu County (€1,114).
The biggest growth in wages last year was recorded in Ida-Viru County (of 15.4 percent) and Põlva County (13. 8 percent). The monthly average decreased, however, in Valga County (by 1.6 percent) and Hiiu County (by 6.7 percent).
In the fourth quarter of last year, average monthly gross wages and salaries in Estonia stood at €1,775, up 9.2 percent on year. Average real wages for the quarter stood at €1,413, however, down 9.3 percent on year.
Editor: Aili Vahtla