In 2020, household disposable income increased by 8.1 %

Results of the survey conducted by the Central Statistical Bureau (CSB) in 2021 show that, compared to 2019, in 2020 household disposable income¹, increased by 8.1 %, reaching EUR 630 per household member monthly. Population income grew faster than in 2019, when it rose by 6.8 %.

Highest incomes in Riga, lowest in Latgale

The highest incomes were in Riga, where they amounted to EUR 751 per household member per month. In Pierīga incomes were EUR 718 per household member per month, in Zemgale - EUR 557 and in Kurzeme - EUR 527. The lowest incomes were in Vidzeme (EUR 518 per month) and Latgale (EUR 445 per month). In urban areas income per one household member reached EUR 657 monthly and in rural areas – EUR 573 monthly.

Income decreases in households with one adult and children

For households with one adult and children under 17, income per household member fell by 8.9 %, from EUR 483 per household member per month in 2019 to EUR 440 in 2020. For couples with three or more children, income decreased by 0.3 % over the year. Income grew fastest for couples without children and couples with one child, by 13.7 % and 10.6 % respectively.

Income from benefits rises faster than income from wages

The amount of social transfers² (pensions, allowances and other budgetary payments) grew significantly faster than income from labour. Income from social transfers per household member increased by 14.1 %, from EUR 133 per month in 2019 to EUR 152 per month in 2020. In turn, household income from labour per household member increased by only 6.0 %, from EUR 412 to EUR 436 per month. 

Income from labour accounted for 69.2 % of household disposable income and social transfers for 24.1 %.

Income per household member in the poorest households comprised EUR 214 monthly

In 2020 income per household member in the poorest households (1st quintile group) comprised EUR 214 monthly, but in the richest households (5th quintile group) – EUR 1 408 monthly. In households with average income they fluctuated from EUR 367 monthly (2nd quintile group) to EUR 721 monthly (4th quintile group).

Household disposable income by quintile group³; 2011–2020

(on average per household member monthly; EUR)

Official Statistics Portal MIS060

Income inequality is rising faster

As the incomes of the richest households (5th quintile) rise faster, income inequality also increases. In 2020, the income of the richest households was 6.6 times higher than that of the poorest households - 0.3 higher than in 2019. The Gini coefficient was 35.7 % last year, 1.2 percentage points higher than in 2019.

Income inequality indicators, 2014–2020

Refer to the Official Statistics Portal: NNI030 and NNI020

Only Bulgaria is worse off in terms of income inequality in the European Union

Compared to other EU Member States⁶, income inequality in Latvia remained high. According to the latest available data, Latvia had the second highest Gini coefficient compared to other EU countries. In 2019, only Bulgaria had a higher rate (40 %). The quintile share ratio was the second highest in the EU. Only Bulgaria had a higher quintile share ratio in 2019 (8.0), while the situation was similar in Romania, where it was the same as in Latvia - 6.6.

Household disposable income data source: survey on income and living conditions conducted by the CSB in 2021 Survey (EU-SILC – EU Statistics on Income and Living Conditions), which was carried out from 30 January to 15 July. Persons taking part in survey could fill in the questionnaire online or by phone.  Face-to-face interviews were not conducted due to the epidemiological situation of COVID-19. 6 600 households and 11 700 respondents aged 16 years and over participated in the survey.

In the 2022 survey, the CSB will obtain data on household income in 2021.

More information on the survey data is available in the CSB database section “Monetary poverty and income inequality indicators (EU-SILC survey)”.

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 are 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 A 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) quintile 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 2020 are available in the Eurostat database Quintile share ratio, Gini coefficient, while national data on the survey conducted in 2021 are available on the Official Statistics Portal at Population – Disposable income and Poverty and inequality (EU-SILC).

Media requests:
Communication Section
E-mail: media@csb.gov.lv
Phone: +371 67366989, +371 27880666

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