21.6 % of population were at risk of poverty in 2023

Provisional results from a survey on income and living conditions conducted by the Central Statistical Bureau (CSB) in 2024 show that 399 thousand people (21.6 % of the total population of Latvia) were at risk of poverty¹ in 2023, meaning that the disposable income² thereof was below the at-risk-of-poverty threshold. The figure is 0.9 percentage points smaller than that registered in 2022.

In 2023, at-risk-of-poverty rate for employed people of working age (aged 18–64) fell to 8.5 % (by 1 percentage points compared to 2022). High at-risk-of-poverty rate (22.8 %) was recorded for people at pre-retirement age (aged 55–64) and very high for people aged 60–64 (25.5 %, suggesting that one in four people in this group was under the at-risk-of-poverty threshold).

As disposable income of the population grew last year, the at-risk-of-poverty threshold rose as well and reached 641 euro monthly in one-person households (563 euro monthly in 2022) and 1 346 euro monthly (1 182 euro monthly in 2022) in households consisting of two adults with two children (aged 14 and under).

The highest at-risk-of-poverty rate was registered in Latgale (32.7 %) while the smallest in Riga (14.2 %). In Vidzeme it made up 29.8 %, in Kurzeme 26.6 %, and in Zemgale 22.2 %.

At-risk-of-poverty rate increased for elderly, unemployed and households with children

At-risk-of-poverty rate increased for people in vulnerable population groups, reaching 57.7 % for unemployed people aged 18–64 (up by 4.1 percentage points compared to 2022), 41.4 % for elderly aged 65 and over (up by 1.3 percentage points), 30.4 % for one adult with dependent children³ (up by 0.8 percentage points), and 20.8 % for two adults with three or more dependent children (up by 1.3 percentage points). However, for single elderly aged 65 and over it reduced from 67.8 % in 2022 to 66.3 % in 2023. At-risk-of-poverty rate in other types of households remained similar to that registered a year ago.

Social transfers becoming less significant for population income

Social transfers⁴ (i.e., targeted state and municipal support, pensions formed by lifetime social tax contributions) are important to fight the risk of poverty. However, the significance of social transfers in population income has reduced slightly. In 2023, the income received in a form social transfers deceased the share of people at risk of poverty by 16.2 percentage points (by 18.1 in 2022, by 18.2 in 2021, and by 17.1 percentage points in 2020). In case there were no social transfers (i.e., without state and municipal support, e.g., old-age pensions), 37.8 % of the population would be at risk of poverty.

More at-risk-of-poverty and social exclusion variables are currently available in the official statistics portal section Poverty and inequality (EU-SILC) and as of 16 January 2025 will be available in an informative leaflet People at Risk of Poverty and Social Exclusion in Latvia 2023 (in Latvian).

The poverty data were collected with the EU-SILC 2024 survey (EU statistics on income and living conditions) during the period from 31 January to 30 July. It covered 10.5 thousand respondents (people aged 16 and over) living in 6 thousand households. Information about the people at risk of poverty in 2024 will be collected in a similar survey in 2025, including with an online questionnaire.

Methodological information

CSB monetary poverty and social exclusion variables for 2024 reflect the population income received in 2023. Unlike the approach used by the CSB, Eurostat (Statistical Office of European Union) publishes monetary poverty and social exclusion figures with a reference to the year the survey was conducted in, nevertheless the income data used refer to the previous calendar year.

¹ At-risk-of-poverty rate is the share of persons with equivalised disposable income below 60 % of the national median equivalised disposable income.

At-risk-of-poverty threshold is 60 % of disposable income median recalculated per equivalent consumer. Median is the middle value of observations arranged in ascending or descending order.

² 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, pensions and benefits received, regular material assistance from other households, profit from  deposit interest, dividends, shares, income received by children aged under 16, income from property rental, tax return from the State Revenue Service due to overpaid income tax (for business activities, eligible costs – education, medical treatment, etc.).

Equivalised disposable (net) income is household disposable income calculated per equivalent consumer. It is obtained by dividing household income by equivalised household size, which is made using the modified OECD equivalence scale (1.0; 0.5; 0.3). This scale gives a weight of 1.0 to the first adult, 0.5 to any other household member aged 14 and over, and 0.3 to each child aged less than 14.

³ Dependent child is a person aged 0–17 as well as a person aged 18–24 if economically inactive and living with at least one of the parents.

⁴ Social transfers are pensions and benefits paid by State or municipality, child maintenance payments, scholarships, social insurance benefits and compensations, including the ones paid by other countries.

Media requests:
Public Relations 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