RMIS2301
Household income rose by 9.1 % in 2022
Results from a survey conducted by the Central Statistical Bureau (CSB) in 2023 show that in 2022, compared to 2021, household disposable income1 increased by EUR 62 or 9.1 % and reached EUR 740 per household member monthly. The upturn was steeper than that registered in 2021 when population income grew by 7.6 %.
Highest income in Riga, lowest in Latgale
The highest household disposable income was recorded in Riga where it reached EUR 860 per household member monthly. In Pierīga it amounted to EUR 845, in Zemgale to EUR 664 and in Kurzeme to EUR 634 per household member monthly. The lowest disposable income was registered in Vidzeme and Latgale – EUR 601 and EUR 536 per household member monthly, respectively. In urban areas monthly income per one household member reached EUR 777 and in rural areas EUR 651.
Sharper income upturn in households formed by couple with three or more children
Disposable income of couples with three or more children rose by 23.0 % (from EUR 508 to 625 per household member monthly). Income in other households with children went up slower: income of couples with one child by 7.0 % (from EUR 788 to 843 monthly), of couples with two children by 6.8 % (from EUR 646 to 690), and of one adult with children by 4.3 % (from EUR 507 to 529).
Income in one-person households rose by 5.0 % (from EUR 766 to 804 monthly): of lone people aged 65+ by 11.8 % and of lone people aged 64 and under by 4.2 %.
Employee income rose faster than income from benefits
Last year, employee income grew faster than the amount of social transfers2 (pensions, benefits, etc. budgetary payments) received. Employee income went up by 11.6 % (from EUR 458 to 511 per household member monthly). Income from social transfers, in turn, increased notably slower – by 6.2 % (from EUR 177 to 188 per household member monthly).
In terms of household type, steeper increase in the income from social transfers was observed in the households of one person aged 65+ (by 13.3 % or from EUR 443 to 502 monthly) and of couples with three or more children (19.6 % or from EUR 112 to 134 monthly). It was because of a stronger State support, i.e., higher state family allowance paid based on the number of children in a family, higher minimum pension amount not subjected to personal income tax, pension index adjustments, etc.
Last year, employee income made 69.0 % of the Latvian household disposable income, social transfers 25.4 %, and self-employment income as well as other income received 5.6 %.
Average income in poorest households – EUR 262 per member monthly
In 2022, the monthly income per household member in the poorest households (belonging to the first income quintile group3) amounted to EUR 262 while in the richest households (fifth group) to EUR 1 592. In the average income level households it varied between EUR 461 (in second group) and EUR 869 (in fourth group). The steepest income rise was observed in the poorest households: by 12.9 % in the first and by 11.9 % in the second income quintile group. Income in other households rose slightly slower.
Household disposable income by quintile group; 2013–2022
(average per household member monthly, EUR)
Quintile group | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | Income increase in 2022, compared to 2021 (%) |
First (poorest households) | 125 | 135 | 150 | 154 | 162 | 186 | 203 | 214 | 232 | 262 | 12.9 |
Second | 228 | 245 | 257 | 266 | 285 | 320 | 353 | 367 | 412 | 461 | 11.9 |
Third | 295 | 317 | 340 | 360 | 401 | 444 | 483 | 509 | 570 | 624 | 9.5 |
Fourth | 413 | 449 | 483 | 514 | 572 | 638 | 680 | 721 | 801 | 869 | 8.5 |
Fifth (richest households) | 780 | 847 | 896 | 942 | 1076 | 1213 | 1290 | 1408 | 1476 | 1592 | 7.9 |
National average | 354 | 387 | 417 | 437 | 489 | 546 | 583 | 630 | 678 | 740 | 9.1 |
Refer to the OSP: MIS060
Income inequality remains high
Regardless of a smaller income rise in the richest households (fifth group), income inequality remained high. In 2022, income of the richest population exceeded that of the poorest population 6.2 times (6.3 times in 2021). In addition, last year Gini coefficient was 34.0 % (34.3 % in 2021).
Income inequality variables; 2015–2022
Variable | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
Gini coefficient4 (%) | 34.5 | 34.5 | 35.6 | 35.2 | 34.5 | 35.7 | 34.3 | 34.0 |
Quintile share ratio (S80/S20)5 | 6.2 | 6.3 | 6.8 | 6.5 | 6.3 | 6.6 | 6.3 | 6.2 |
Refer to the OSP: NNI030 and NNI020
Compared to other European Union (EU) countries6, income inequality in Latvia remains high. The latest data available show that Latvia had the third highest Gini coefficient in the EU. In 2021 higher coefficient was registered only in Bulgaria (38.4 %) and Lithuania (36.2 %). Quintile share ratio was the third highest in the EU as well. Higher ratio was also recorded in Bulgaria (7.3) and Lithuania (6.4).
Household disposable income data source: 2023 EU Statistics on Income and Living Conditions (EU-SILC) survey conducted by the CSB from 31 January to 17 July. The survey covered 10.2 thousand respondents aged 16 and over from 5.8 thousand households.
Within the framework of the 2024 survey the CSB will obtain data on household income in 2023.
Methodological information
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 figures from the survey conducted in 2022 are available in the Eurostat database: Quintile share ratio, Gini coefficient; while national survey results (collected in 2023) 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 27880666
More information on data:
Social Statistics Methodology Section
Darja Behtere
E-mail: Darja.Behtere@csp.gov.lv
Phone: +371 67366901
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