In 2021 household disposable income grew by 7.6 %

Results of a survey conducted by the Central Statistical Bureau (CSB) in 2022 show that, compared to 2020, in 2021 household disposable income¹, increased by EUR 48 or 7.6 %, reaching EUR 678 per household member monthly. Population income rose slightly slower than in 2020 when upturn constituted 8.1 %.

Highest income in Riga, lowest in Latgale

The highest disposable household income was observed in Riga where it reached EUR 791 per household member monthly. In Pierīga it reached EUR 753 per household member monthly, in Zemgale EUR 631 and in Kurzeme EUR 613. The lowest disposable income was registered in Vidzeme (EUR 513 per household member monthly) and Latgale (EUR 504). In urban areas income per one household member reached EUR 711 monthly and in rural areas EUR 604.

Sharper income upturn in households formed by couple with three or more children and lone parent with children

Disposable income in one-person households grew by 14.2 % (from EUR 671 monthly in 2020 to EUR 766 monthly in 2021). The income of single people aged 65 and over went up by 14.5 % and of those aged up to 64 by 12.8 %.

Income in households formed by lone parent with children aged 17 and under rose by 13.8 % (from EUR 441 per household member monthly in 2020 to EUR 502 in 2021) and income of couples with three and more children by 10.5 % (from EUR 448 to EUR 495). The smallest income increase was observed in households formed by couples with one or two children – of 4.6 % and 4.8 %, respectively.

Steeper income upturn in socially more vulnerable households (those formed by lone parent with children, couple with three and more children, or single elderly) may be related to the State aid granted to mitigate negative impact of COVID-19 restrictions on the income of these households. In 2021, from 1 March to 6 April, households with children received a one-off support payment amounting to EUR 500 per child, while people in retirement and those receiving disability pension/benefit, compensation for the loss of capacity for work, survivor's pension/benefit, or care of a disabled child benefit received a one-off support payment amounting to EUR 200.

Income from benefits rose faster than employee income

The amount of social transfers² (pensions, benefits, etc. budgetary payments) received grew significantly faster than the amount of employee income. Income from social transfers increased by 16.7 % (from EUR 152 per household member monthly in 2020 to EUR 177 in 2021).  Employee income, in turn, went up by only 5.0 % (from EUR 436 per household member monthly to EUR 458).

The share of employee income in the household disposable income constituted 67.6 % while that of social transfers 26.1 %.

Income in poorest households – EUR 232 per member monthly

In 2021 the monthly income per household member in the poorest households (belonging to the first quintile group³) comprised EUR 232, while in the richest households (belonging to the fifth quintile group) EUR 1 475. In households with average income level it varied between EUR 412 (in second quintile group) and EUR 801 (in fourth quintile group). The steepest income rise was observed in households belonging to second, third and fourth quintile groups (of 12.1 %, 12.1 % and 11.1 %, respectively). Slightly slower upturn was recorded in poorest households (belonging to the first quintile group) (of 8.3 %), while the smallest rise was registered in richest households (belonging to the fifth quintile group) (of 4.8 %).

Household disposable income by quintile group; 2012–2021

(average per household member monthly, EUR)

Refer to the OSP database: MIS060

Income inequality is shrinking but remains high

Along with a smaller rise of income in the richest households (belonging to the fifth quintile group), income inequality is reducing. However, in 2021 income of the richest population exceeded that of the poorest population 6.3 times (0.3 times fewer than in 2020). Last year, Gini coefficient amounted to 34.3 %, which is 1.4 percentage points fewer than in 2020.

Income inequality indicators; 2014–2021

Refer to the OSP database: NNI030 and NNI020

Compared to other European Union (EU) countries⁶, in Latvia income inequality remains high. The latest data available show that Latvia had the third highest Gini coefficient in EU. In 2020 higher coefficient was registered only in Bulgaria (39.7 %) and Lithuania (35.4 %). Quintile share ratio was the third highest in the EU as well. In 2019 higher ratio was recorded only in Bulgaria (7.5) and Romania (7.1).

Household disposable income data source: EU Statistics on Income and Living Conditions (EU-SILC) survey conducted by the CSB in 2022 from 30 January to 18 July. People taking part in the survey were able to submit online questionnaire or answer survey questions by phone or face-to-face. The survey covered more than 5.8 thousand households and 10.3 thousand respondents aged 16 and over.

Within the framework of the 2023 survey the CSB will obtain data on household income in 2022.

Methodological explanations

¹ Disposable (net) income is cash income from labour, employee income in kind received by using company car for private needs estimated in cash, income or losses received from self-employment, received pensions and benefits, regular material assistance from other households, profit from interests of deposits, dividends, shares, income received by children aged under 16, income from property rental, receipts from tax adjustments from the State Revenue Service (for business activities, eligible costs – education, medical treatment, etc.).

² Social transfers include pensions and benefits paid by the State or municipality, child maintenance payments, scholarships, social insurance benefits and compensations, including the ones paid by other countries.

³ Quintile group is one fifth (20 %) of the number of the surveyed households grouped in increasing sequence according to the disposable income per one household member. The bottom (first) quintile group includes one fifth of the households with the lowest income, while the top (fifth) comprises one fifth of the households with the highest income level.

⁴ Gini coefficient characterises income inequality. It varies from 0 to 100. Gini coefficient amounts to 0 if there is absolute equality of income (i.e., all population has the same income), but the closer it gets to 100, the greater the inequality of income.

⁵ Quintile share ratio (S80/S20) is the ratio of total equivalised disposable income received by the 20 % of the country’s population with the highest equivalised disposable income (top quintile) to that received by the 20 % of the country’s population with the lowest equivalised disposable income (bottom quintile).

⁶ Eurostat indicators on the survey conducted in 2021 are available in the Eurostat database: Quintile share ratio, Gini coefficient, while national data on the survey conducted in 2022 are available on the official statistics portal: Population – Disposable income and Poverty and inequality (EU-SILC).

Media requests:
Communication Section
E-mail: media@csp.gov.lv
Phone: +371 67366989, +371 278806668

More information on data:
Liene Āboliņa
Social Statistics Data Compilation and Analysis Section
E-mail: Liene.Abolina@csp.gov.lv
Phone: +371 67366727