RPPI2201
In 2021 social protection expenditure increased by 22.5 %
Provisional data of the Central Statistical Bureau of Latvia (CSB) show that in 2021 Latvian social protection expenditure accounted for EUR 6 billion 440 million, which is EUR 1 billion 183.1 million or 22.5 % more than in 2020. The greatest increase was observed in expenditure on the social protection functions sickness/health care (of 37.9 %), family/children (37.2 %), survivors (30.9 %), and housing (29.7 %).
Social protection expenditure in Latvia by ESSPROS function
(million EUR annually)
| 2019 | 2020 | 2021 (provisional data) | Change in 2021, compared to 2020 (%) | |
million EUR | % | ||||
Total expenditure on social protection | 4 774.5 | 5 256.9 | 6 440.0 | 100.0 | 22.5 |
sickness/health care | 1 378.1 | 1 535.8 | 2 117.5 | 32.9 | 37.9 |
disability | 401.4 | 424.1 | 508.0 | 7.9 | 19.8 |
old age | 2 142.0 | 2 284.1 | 2 523.2 | 39.2 | 10.5 |
survivors | 60.7 | 70.7 | 92.5 | 1.4 | 30.9 |
family/children | 491.6 | 511.0 | 700.9 | 10.9 | 37.2 |
unemployment | 188.2 | 308.7 | 351.7 | 5.5 | 13.9 |
housing | 16.3 | 16.3 | 21.1 | 0.3 | 29.7 |
social exclusion | 30.1 | 32.1 | 40.1 | 0.6 | 25.1 |
administrative costs (estimated) | 64.9 | 73.0 | 83.9 | 1.3 | 14.9 |
other expenditure | 1.3 | 1.2 | 1.0 | 0.0 | -16.4 |
Refer to the OSP database: PPI010
Expenditure on sickness benefits up by 28.8 %
In 2021, expenditure on health grew by 37.9 %, of which expenditure on outpatient care rose by 53.9 % reaching EUR 694.8 million. Due to the change in eligibility for benefit to people affected by COVID‑19 and under quarantine1, expenditure on sickness benefit went up by 28.8 % reaching EUR 312.5 million.
Greater support to families with children (upturn of 37.2 %)
The second greatest upturn in social protection expenditure (of 37.2 %) was observed in social protection function family/children. Aiming to mitigate negative impact of COVID-19 and ease strain on the financial means of families with children, in 2021 state made a one-off support payment (amounting to EUR 500 per child) to one of the parents or a caregiver. According to the State Social Insurance Agency, the support was provided to 375.9 thousand children, thus using EUR 187.9 million of the national budget.
Expenditure on function survivors rose by 30.9 %
Last year, expenditure on the social protection function survivors increased by 30.9 % reaching EUR 92.5 million, of which EUR 15.4 million were spent on the benefit for the spouse of a deceased beneficiary of pension introduced as of 1 January 2019 (EUR 12.4 million in 2019).
Downtime allowance received by 76.3 thousand people
In 2021, with an aim to address potential risks of job cuts or unscheduled downtime, employers were able to apply for a state co-payment to compensate employee wages during idle time (i.e., for a downtime allowance). According to the State Revenue Service, 76.3 thousand people received downtime allowance in 2021 (expenditure on it reached EUR 135.9 million).
Expenditure on GMI grew by 82.5 %
Expenditure on measures to fight social exclusion increased by 25.1 % reaching EUR 40.1 million. Along with the higher guaranteed minimum income (GMI) threshold2 and upturn in the number of beneficiaries, the expenditure on allowance for the provision of GMI rose by 82.5 % reaching EUR 9.5 million in 2021. According to the Ministry of Welfare, the number GMI benefit recipients went up by 8.6 thousand over the year (from 16.5 to 25.1 thousand).
In terms of social protection expenditure share in GDP, Latvia takes the leading position among the Baltic countries
Expenditure on pensions and benefits (incl. administrative and other) took 19.1 % of the gross domestic product (GDP), which is 1.7 percentage points more than in 2020 (17.4 %). Comparison of the Baltic social protection expenditure (share of GDP) in 2020 and 20213 shows an increase of 1.8 percentage points in Latvia (from 17.1 % in 2020 to 18.9 % in 2021) and decrease of 1.6 percentage points (from 19.2 % to 17.6 %) and 2.1 percentage points (from 18.9 % to 16.8 %) in Lithuania and Estonia, respectively.
Since 2004 social protection expenditure statistics in Latvia is compiled based on the ESSPROS (European System of integrated Social PROtection Statistics) methodology. The methodology is aimed at producing internationally comparable information on social protection expenditure diverted from state and local government budgets to meet population needs in this area.
1 According to the amendments to the law On Maternity and Sickness Insurance (Section 41): the sickness benefit shall be granted and disbursed to a person to whom the sick-leave certificate is issued due to contracting COVID-19 or being under quarantine from 16 November 2020 until 30 June 20211 from the first day of the incapacity for work.
2 As of January 2021, GMI threshold has been set to EUR 109 for the first (or only) person in the household (EUR 64 in 2020) and EUR 76 for other members.
3 Data on 2021 – early estimates for ESSPROS functions given by the countries.
Media requests:
Communication Section
E-mail: media@csp.gov.lv
Phone: +371 27880666
More information on data:
Kārlis Smudzis
Social Statistics Data Compilation and Analysis Section
E-mail: Karlis.Smudzis@csp.gov.lv
Phone: +371 67366948
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