28% of Latvian Residents Consider the Pay System at Their Workplace Unfair

Nearly one in three people in Latvia, or 28%, believe the pay system at their workplace is unfair, according to a survey carried out by the research company Norstat. Among employed people only, the share is one in three (34%).

Survey results

Respondents were asked how fair, meaning non-discriminatory, the pay system at their workplace is. Almost half (44%) answered that it is fair or rather fair, while 28% said it is unfair or rather unfair. Another 12% could not answer, and 16% do not have a paid job. The most extreme answer, "unfair", was chosen by 11% of residents.

Men and women feel unfairness to a similar degree: 28% and 29% respectively consider their pay unfair.

Differences by income

The lower an employee's personal income, the more often they regard pay at their workplace as unfair. Among those with a net monthly income of 751–1,000 euros, 35% say so, compared with 11% of those earning more than 2,000 euros.

Juris Zālāns, head of the benefits management platform Beneflo, said a sharp gap between men and women had been expected, but those with proportionally lower pay complain about discrimination most. Among managers earning 2,000 euros net or more, only one in ten (11%) points to discrimination and unfairness.

EU directive and the gender pay gap

Zālāns links the survey data to the implementation of the EU Pay Transparency Directive. The directive aims to narrow the pay gap between men and women and will require employers to take into account not only salary but also all bonuses and benefits.

In several sectors the gap is already twice the average: 35.1% in arts, entertainment and recreation, 30.5% in health and social care, 29.5% in finance and insurance, and 25.8% in information and communication technology. These figures are calculated on monetary pay alone. Once benefits such as gym memberships, extra days off on 1 September or company cars are included, the gap may become even more noticeable.

According to Zālāns, people do not see the pay gap as a gender issue, partly because the problem is hidden: employees rarely know what a colleague earns, let alone what benefits they receive. The directive will change that.