Social protection expenditure increased by 7.9 % in 2024

Provisional Central Statistical Bureau data show that social protection expenditure in Latvia amounted to 7 billion 655 million euro in 2024, which is 562 million euro, or 7.9 %, more than in 2023.

The largest increase – of 19.6 % – was recorded in expenditure related to unemployment, mainly due to higher spending on unemployment benefits. Expenditure on sickness and health care rose by 11.1 %, and support for persons with disabilities increased by 9.1 %.

By contrast, a decrease of 10 % was recorded in the function housing, largely reflecting lower municipal spending on the housing allowance.

Social protection expenditure in Latvia 

(annual, million euro)

Refer to the OSP database: PPI010

Expenditure on unemployment benefits increased by 18.7 %

Spending on unemployment benefits was 18.7 % higher year-on-year, reflecting both an increase in the number of recipients (up by 6.3 %) and a rise in the average wage subject to insurance contributions. Data from the State Social Insurance Agency and the State Employment Agency show that, of the 46.6 thousand people registered as unemployed at the end of 2024, 31.1 thousand, or 66.7 %, received unemployment benefit (at the end of 2023 those were 30.2 thousand persons, or 60.0 %). 

Expenditure on health care also rose

The total expenditure on the function sickness/health care grew by 11.1 % in 2024, with the expenditure on outpatient care rising by 9.9 % and reaching 625.1 million euro and the expenditure on sickness benefit increasing by 12.9 % and reaching 374.1 million euro. The increase in expenditure on sickness benefits was mainly driven by the rise in the amount paid out – the average benefit size grew from 772.48 euro in 2023 to 871.67 euro in 2024.

Higher municipal expenditure on personal assistance for persons with disabilities 

Expenditure on the function disability increased by 9.1 % in 2024. Due to higher remuneration of personal assistants and companions, municipal expenditure on personal assistance for persons with disabilities increased by 25.1 % and reached 61.5 million euro. 

Expenditure on social rehabilitation services for victims of violence rose by 55.6 %

Spending on measures to reduce social exclusion increased by 3.5 %. Expenditure on social rehabilitation services for children and adults affected by violence grew by 55.6 % and reached 2.6 million euro. The increase mainly reflects higher remuneration costs in providing social rehabilitation services and a rise in the number of victims receiving support. According to the Ministry of Welfare, the number of persons who received social rehabilitation services due to unlawful acts rose from 2 111 in 2023 to 2 396 in 2024.

Expenditure on old-age pensions up as well – by 8 % 

The bulk of social protection expenditure (44.2 %) went to the population at retirement age, with the largest share – 89.4 % amounting to 3.03 billion euro – allocated to old-age pensions. Driven by the pension index adjustments made last year, total social protection expenditure on the function old age rose by 6.9 % year-on-year. The average monthly old-age pension paid out was 37 euro higher than in 2023, reaching an average of 550 euro and contributing to an overall 8 % increase in total expenditure on old-age pensions.

Expenditure on survivor's pensions grew by 7.5 %

The pension index adjustments made last year, together with the higher minimum survivor’s pension, resulted in a 7.5 % increase in expenditure on survivor's pensions year-on-year. Total expenditure on the function loss of a provider rose by 4.8 % compared with 2023.

Expenditure on the function housing reduced 

Following the rise recorded in 2023 (up by 55.3 %), when additional resources were allocated to compensate for higher energy prices, expenditure on the function housing fell by 10 % in 2024. Expenditure on the housing allowance stood at 43.3 million euro (down by 8 % year-on-year). According to the Ministry of Welfare, the number of housing allowance recipients decreased by 12.1 thousand, from 79.9 thousand in 2023 to 67.8 thousand in 2024.

Expenditure on support for families with children down by 0.4 % 

Due to a decline in the number of children eligible for benefits, expenditure on the family state allowance – granted to families raising children – fell by 0.2 % (to 210.8 million euro), while spending on the parental benefit decreased by 2.7 % (to 128.6 million euro).

Latvia ranks first among the Baltic countries in social benefits expenditure as a share of GDP

Latvia’s expenditure on social protection benefits (benefits, pensions, administrative and other costs) reached 19 % of the gross domestic product (GDP) last year, which is 1.1 percentage points more than in 2023, when it stood at 17.9 %.

Year-on-year figures for the Baltic countries show higher expenditure in all three: up by 1 percentage point in Latvia (from 17.7 % in 2023 to 18.7 % in 2024), by 0.3 percentage points in Lithuania (from 16.6 % to 16.9 %), and by 2.3 percentage points in Estonia (from 15.2 % to 17.5 %).

The EU average stood at 27.3 % of GDP.

Expenditure on social protection benefits per capita at 4 thousand euro

The share of social protection expenditure of the GDP is just one of the variables used to measure social protection spending. Annual expenditure on social protection benefits per capita is also used for this purpose.

In 2024 ¹, Latvia’s figure (4 thousand euro per capita) was slightly lower than in the neighbouring Baltic countries (4.6 thousand euro in Lithuania and 5.1 thousand euro in Estonia). Year-on-year, the indicator increased by 8.8 % in Latvia, by 7.4 % in Lithuania, and by 19.4 % in Estonia.

Methodological information 

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.

Additional statistics for social protection expenditure is available in the official statistics portal database, under State benefits, allowances, pensions and social security.

¹ 2024 data – early estimates for ESSPROS main indicators regarding expenditure on social protection benefits.

Media requests: 
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Email: media@csp.gov.lv
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More information on the data:
Kārlis Smudzis
Social Statistics Data Analysis and Dissemination Section
Email: Karlis.Smudzis@csp.gov.lv
Phone: +371 67366948