At the same time, the statistics office states that the highest income last year was in Riga, where it reached 860 euros per household member per month. In Pieriga they were 845 euros, in Zemgale – 664 euros and in Kurzeme – 634 euros per household member per month. On the other hand, the lowest income was in Vidzeme – 601 euros and in Latgale – 536 euros per month.
In cities, income per household member reached 777 euros per month, and in rural areas – 651 euros per month.
The data also show that the income of couples with three or more children increased by 23% during the year – from EUR 508 to EUR 625 per household member per month. The income of the other households with children grew more slowly. The income of couples with one child increased by 7% – from EUR 788 to EUR 843 per month, for couples with two children – by 6.8% or from EUR 646 to EUR 690 per month, and for households with one adult and children – by 4.3% or from 507 euros to 529 euros per month.
The income of one-person households increased by 5% – from EUR 766 to EUR 804 per month. The income of single seniors aged 65 and over increased by 11.8% and for persons up to the age of 64 – by 4.2%.
Last year, income from wages increased faster than income from social transfers, namely pensions, allowances and other budget payments. Income from paid work increased by 11.6% – from EUR 458 to EUR 511 per household member per month. On the other hand, the amount of social transfers received grew more slowly – by 6.2%, or from 177 to 188 euros per month.
During the year, income from social transfers increased more rapidly for single senior citizens aged 65 and over – by 13.3% or from 443 euros to 502 euros per month, as well as for couples with three or more children – by 19.6% or from 112 euros to 134 euros per month. The Statistical Office notes that this is related to state support measures, increasing the family state allowance depending on the number of children, increasing the amount of the minimum pension not subject to personal income tax, indexing pensions.
Last year, 69% of the disposable income of Latvian households was income from paid work, 25.4% – social transfers, and 5.6% – self-employed and other income.
In 2022, in the poorest households (in the first quintile group), the income per household member was 262 euros per month, whereas in the richest households (in the fifth quintile group) – 1,592 euros per month. In households with average incomes, they ranged from 461 euros per month (in the second quintile group) to 869 euros per month (in the fourth quintile group). Households with the lowest incomes, i.e. in the first and second quintile groups, experienced the fastest income growth. The income of these households increased by 12.9% and 11.9%, respectively. The income of the other households grew more slowly.
Although the income of the wealthiest households (of the fifth quintile group) rose more slowly than the rest of the households, income inequality still remained high, the statistics office states, adding that in 2022 the income of the richest residents was 6.2 times higher than the income of the poorest residents, while in 2021 this income gap was 6.3 times. The Gini coefficient was 34% last year, and in 2021 – 34.3%.
The Statistical Office also states that, compared to other European Union (EU) member states, Latvia still has high income inequality. According to the latest available data, Latvia had the third highest value of the Gini coefficient compared to other EU countries. In 2021, the rate was higher only in Bulgaria (38.4%) and Lithuania (36.2%). The quintile ratio index was also the third highest in the EU. Similar to the Gini coefficient, the quintile ratio index was higher only in Bulgaria (7.3) and Lithuania (6.4).
The source of household income data is the 2023 population survey of the Central Statistics Office on income and living conditions, which was conducted from January 31 to July 17. 10,200 respondents aged 16 and over from 5,800 households took part in the survey.
A quintile group is one-fifth (20%) of the number of households surveyed, grouped in increasing order by their disposable income per household member. The lowest (first) quintile group includes the fifth of households with the lowest income, while the highest (fifth) includes the fifth of households with the highest income.
On the other hand, the Gini coefficient characterizes income inequality. It ranges from 0 to 100. The Gini coefficient is 0 if there is absolute income equality, that is, all residents have the same income, but the closer it gets to 100, the greater the income inequality.
2023-12-13 16:35:00
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