One in five workers belongs to Generation Z: what about their salaries?
10/25/2024
Aušrinė Ambrolaitytė, Figure Baltic Advisory analyst
The proportion of Generation Z (born between 1997 and 2012) entering the Baltic labor market is increasing, with current data showing that nearly one in five workers belongs to this generation. Additionally, it's predicted that by 2025, Generation Z will represent over a quarter of the global workforce.
More and more professionals of the youngest generation are seeking to establish themselves in both Lithuanian and global labor markets. The most popular fields of work in the Baltic countries include customer service and management, information technology (IT) and telecommunications, sales and marketing. According to our calculations, more than half of Generation Z is working in these fields.
The gender pay gap is evident
Let’s use the Lithuanian example in this article. According to our compensation survey, the average basic monthly salary in Lithuania is 2195 EUR (gross) and the average hourly salary is 7,2 EUR (gross). Meanwhile, the average annual base remuneration is 22971 EUR (gross) and the total remuneration with variable components, including commissions, variables and other bonuses, is 24959 EUR (gross).
Our survey also assesses the pay gap between men and women, taking into account the EU Directive on Pay Transparency coming into effect in less than two years, in June 2026. It aims to ensure that employers adhere to equal pay for equal work. According to the data, Generation Z men earn more than women: 4,2% more in hourly pay, 14,2% more in basic monthly pay, 17,1% more in basic annual pay and 19,1% more in total annual pay.
However, it is not yet possible to draw any definitive conclusions, as the positions held by staff in different areas of work and the weight of responsibilities are not taken into account. In order to better assess the real wage gap between Generation Z men and women, it would be better to look at medians rather than averages – the central values that divide the entire set of values in half. In this way, we find that the gaps are not as pronounced, and in some cases even non-existent, for example, in terms of hourly pay, both men and women earn the same. At the same time, the difference between the basic monthly salary is up to 5%.
The highest salaries are found in the IT sector
Our remuneration study also evaluated the areas where Generation Z currently works and how much they earn on average. The highest earning sectors in Lithuania are IT and telecommunications, with an average monthly base salary of 3032 EUR (gross), an average annual base salary of 36377 EUR (gross), and a total annual salary of 38387 EUR (gross).
Meanwhile, the lowest salaries are in customer service and management. Although the average basic monthly remuneration is 1606 EUR (gross) and is not the lowest among the other industries, those working in this sector receive the lowest average basic and total annual remuneration: 15935 EUR (gross) and 17819 EUR (gross) respectively.
The wages of Generation Z and older employees are not determined by their age group, but rather by their experience, skills, and the conditions of the labor market in their specific field. Similar trends are likely to apply to Generation Alpha, who will be entering the labor market in a few years.