Income and living conditions of the population of Lithuania (edition 2020)
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The EU relative poverty indicators are compiled according to a common methodology: the relative poverty threshold is calculated as the relative share of the average income of the country’s population; persons with income below this threshold are considered living in poverty. However, when comparing the relative poverty among the countries, insufficient consideration is given to differences in terms of standard of living: e.g., in the countries with a high standard of living, persons living below the relative poverty threshold, while having far less opportunities to meet their needs than the rest of the society, still can satisfy more than just their essential needs, so they do not feel as living in poverty. The relative poverty indicators calculated according to the EU common methodology is agreed to be called the at-risk-of-poverty indicators. At-risk-of-poverty threshold in the EU countries is calculated as 60 per cent of the median equivalised disposable income in cash.
20.6 per cent of the country’s population received the equivalised disposable income in cash below the at-risk-of-poverty threshold. In 2019, at-risk-of-poverty rate in urban and rural areas stood at 17.1 and 27.9 per cent respectively. In 2019, the at-risk-of-poverty threshold was EUR 379 per month for a person living alone, EUR 797 – for a family composed of two adults and two children aged under 14. Compared to 2018, due to an increase in disposable income of population, the at-risk-of-poverty threshold grew by 10 per cent.
Compared to 2018, overall at-risk-of-poverty rate decreased by 2.3 percentage points: in five major cities – increased by 0.2 percentage points, in other cities and towns – decreased by 4.9 percentage points, in rural areas – decreased by 3.4 percentage points.
At-risk-of-poverty rate by place of residence, 2015–2019
The latest and detailed data are available in the Database of Indicators
In 2019, in the households with children, the at-risk-of-poverty rate stood at 18.4 per cent, and compared to 2018, it decreased by 0.4 percentage points. In the households without children, the at-risk-of-poverty rate over a year decreased by 4.5 percentage points and stood at 22.5 per cent in 2019. In terms of household composition, persons living in households composed of one adult with dependent children and in one-person households were those at the largest risk of poverty (the at-risk-of-poverty rate – 45.4 and 46.3 per cent respectively).
7.9 per cent of employed persons, 54.4 per cent of unemployed persons and 35.1 per cent of retired persons were living below the at-risk-of-poverty threshold. Compared to 2018, the at-risk-of-poverty rate of employed persons decreased by 0.2, that of unemployed – 7.9, that of retired persons – 6.6 percentage points.
Working on a minimum wage did not preclude the risk of poverty: with the deduction of income tax and social-security contributions from the minimum wage, the disposable income, with no other source of income, would be below the at-risk-of-poverty threshold.
The decrease in the at-risk-of-poverty rate of the retired persons was determined by an increase in old-age pensions. In the survey period (2018), the average old-age pension amounted to EUR 311.5 and accounted for 82.2 per cent of the at-risk-of-poverty threshold. The average old-age pension has been below the at-risk-of-poverty threshold for several consecutive years; however, during the survey period, this difference decreased: the average old-age pension increased more than the at-risk-of-poverty threshold.
For further terms, see the Dictionary of Statistical Terms.