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“There is a tendency for poverty indicators to decrease in all groups in Lithuanian society, society is beginning to live better,” Deputy Minister of Social Security and Labor Eitvydas Bingelis told reporters on Wednesday.
PHOTO GALLERY. Poverty statistics
Most of the winners were families and retirees.
Last year, around 215 thousand people lived in Lithuania below the absolute poverty line. people: their income was up to 251 euros a month, and families of two parents and two children under 14 to 527 euros, according to the latest data from the Department of Statistics.
Commenting on the latest statistics, the Vice Minister emphasized that the indicators for 2019 include revenue for 2018.
“The two groups that have earned the most in society are pensioners, whose inequality has decreased by almost 7 percentage points. This means that, for the first time in the history of Lithuanian independence, the average pension exceeded the risk threshold of Poverty This means that the pension indexation formula ensures that pensions continue to grow.
The other group that has won the most are families raising children. The biggest change that has taken place since that year is families with three or more children. This is the first year that he pays 30 euros. (child’s money – automatic mail)“E. Bingelis said.
The Deputy Minister notes that in order for the poverty indicators in Lithuania to continue to decline, it is necessary to focus on continuing to work with old-age pensions.
“We need to continue indexing pensions, we need to see how to provide the resources for that, we need to make sure that people have the best possible and best job resources. <...>
We need to talk about those older retirees who do not have the required length of service. We need to talk about increasing your welfare pensions. We must also ensure that the pension system is not flat, that when we increase pensions from below, we must ensure that they are not the same for everyone, “Deputy Minister of Social Security and Labor Eitvydas Bingelis told reporters on Wednesday.
The number of poor people decreased
Last year, some 576,000 people lived below the risk of poverty rate. persons. Last year, it represented 20.6 percent. In the country’s population, this indicator decreased by 2.3 percentage points during the year. The absolute poverty rate in 2019 was 7.7 percent. – 3.4 points less than in 2018.
According to the Department of Statistics, 6.2% of the city received disposable income below the absolute poverty line. population (4.8 percent in five large cities, 8.4 percent in other cities), 10.8 percent in rural areas.
The absolute poverty rate for children under the age of 18 was higher than for those of working or retirement age. In 2019, it represented 8.4 percent. and decreased by 5.6 points.
The absolute poverty rate in households with children last year was 6.6 percent. and decreased by 3.8 points, and childless, decreased by 3.4 points to 8.4 percent.
Depending on the composition of the household, families living with a parent with dependent children (absolute poverty rate – 19.5%) and those living alone (17.5%) were more likely to be in absolute poverty.
Among those who work below the absolute poverty line, 1.9 percent, among the unemployed – 38.2 percent, among old-age pensioners – 8.5 percent. Throughout the year, the absolute poverty rate of the active population decreased by 1.1 points, that of the unemployed by 12.6 points and that of retirees by 4.6 points.
Poverty risk rates are also decreasing
Last year’s poverty risk rate was 20.6 percent. and fell 2.3 points during the year. Last year, about 576 thousand. People in the country lived below this threshold.
The poverty risk threshold last year was € 379 per month per person and € 797 for a family with two children under the age of 14. Due to the increase in disposable income, the poverty risk threshold increased by 10% compared to 2018.
17.1% of the city received disposable income below the poverty line. of the population (14 percent in the five largest cities, 22.1 percent in other cities), 27.9 percent in rural areas.
The risk of poverty rate decreased by 1.7 points during the year in urban areas (increased by 0.2 points in the five largest cities and decreased by 4.9 points in other cities) and decreased by 3.4 points in rural areas.
The highest risk of poverty rate was found in the age group over 65 years. In 2019, it represented 31.6 percent. and decreased by 6.1 points during the year. The average old-age pension in the income survey period (2018) was 311.5 euros and represented 82.2%. poverty risk thresholds.
The average old-age pension has been below the poverty risk threshold for several years, but the gap has narrowed: the average old-age pension has risen above the poverty risk threshold.
The risk of poverty rate for children under the age of 18 decreased by 1.2 points during the year and reached 22.7% last year, for people aged 18 to 64, it decreased by 1.5 points to 16.5%.
According to the department, this decrease was primarily due to changes in monetary social support for families with children and the poor. In 2018, social security spending for families and children increased by 43.1 percent.
The minimum wage is not enough.
According to the department, working for the minimum wage did not protect against the risk of poverty: after deducting income tax and social security contributions from the minimum wage, disposable income without income from other sources would be below the threshold of risk of poverty.
The risk of poverty rate for households with children in 2019 was 18.4%. and decreased by 0.4 points during the year. The risk of poverty rate in childless households decreased by 4.5 points during the year and in 2019 amounted to 22.5%.
According to the composition of the household, people living in households made up of adult and dependent children (poverty risk rate of 45.4%) and single people (46.3%) are at the highest risk of falling into poverty.
Among employees, the poverty risk threshold was 7.9 percent, among the unemployed, 54.4 percent, among retirees, 35.1 percent. Compared to 2018, the risk of poverty rate of employed persons decreased by 0.2 percentage points, that of unemployed persons, by 7.9 percentage points, and of old-age pensioners, by 6.6 percentage points.
After deducting social benefits (excluding old-age and widow’s pensions) from disposable income, the poverty risk rate would increase to 30.1% in 2019. The impact of social benefits on the poverty risk rate has increased compared to previous years, with the greatest impact on the poverty risk rate of households with children.
Poverty rates are calculated based on income from the previous year.
The absolute poverty rate is calculated according to the same methodology as the poverty risk rate, the method and the size of the poverty line are different. The absolute poverty line is considered to be the amount required to satisfy the minimum needs, calculated according to the methodology to calculate the amount of the minimum consumption needs of a person (family) approved by the Ministry of Social Security and Labor.
BNS
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