The highest income in Riga, the lowest in Latgale
The highest income 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. 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.
Income grew fastest for couples with three or more children
For couples with three or more children, the income increased by 23% during the year – from 508 to 625 euros 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 788 to 843 euros per month), couples with two children – by 6.8% (from 646 to 690 euros per month) and households with one adult and children – by 4.3% ( from 507 to 529 euros per month).
The income of one-person households increased by 5% – from 766 to 804 euros 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%.
Income from wages increased faster than income from benefits
Last year, income from wages increased faster than income from social transfers (pensions, allowances, etc. budget payments). Income from paid work increased by 11.6% – from 458 to 511 euros per household member per month. On the other hand, the amounts of social transfers received grew significantly slower – by 6.2% (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% (from 443 to 502 euros per month) and for couples with three or more children – by 19.6% (from 112 to 134 euros per month ).
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, etc.
Last year, 69% of the income available to Latvian households was income from paid work, 25.4% – social transfers, and 5.6% – self-employed and other income.
In the poorest households, the average income per person was 262 euros per month
In 2022, the income per household member in the poorest households was 262 euros per month, while in the richest households it was 1,592 euros per month. In households with average incomes, they ranged from 461 euros per month to 869 euros per month.
Households with the lowest incomes had 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.
Income inequality remains high
Although the incomes of the wealthiest households rose more slowly than the rest of the households, income inequality remained high. In 2022, the income of the richest population was 6.2 times higher than the income of the poorest population (in 2021, this income difference was 6.3 times). The Gini coefficient was 34% last year (34.3% in 2021).
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 source of household income data is the CSB 2023 population survey on income and living conditions, which was conducted from January 31 to July 17. 10.2 thousand respondents (aged 16 and over) from 5.8 thousand households took part in the survey.
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2023-12-13 11:23:29
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