SALARIES AND WAGES

Average gross monthly wages of the people employed in the economy in Latvia and Riga is gradually increasing, however, these wages converted into United States dollars are still lower than wages and salaries in most Central and Eastern European countries, except for Bulgaria, Romania and CIS countries.

Average wage is larger in the public sector. However, taken into account the fact that as the public sector does not create new wealth but the private sector does, not a, which possibly indicates that the so-called "grey" economy is still an important component of the economy (see Table 10 ).

The average monthly salary of employed people in Riga is higher than in other regions and towns of Latvia. This to a great extent is linked with the structure of sectors and enterprises and the skill level of workforce (see Figure 62 ).

The highest average gross salary in 2000 in the economy of Riga was in financial sector (660 LVL), followed by water transport, air transport, post and communications, but the lowest - in health and social care sector.

 HOUSEHOLD INCOME AND EXPENSES

According to the household budget surveys in 2000 the disposable incomes of households reached 88.11 LVL per one member of a household per month, which was a 13% increase if compared with the previous year. Expenditure of the households has also increased in recent years and in 2000 it increased by 7% in comparison with the preceding year.  Household in Riga have the highest per household income in Latvia, with the most essential income source being wages and salaries (60% of all income, (see Figure 61 ). 

Food expenditure (31.7%), payments for rent, water, electricity and heating (20.1%) as well as the costs of house property and maintenance of apartments (4.2%) remain the main consumption priorities. The third priority of all households in Riga is purchasing of clothes and footwear (see Table 31 ).

 SOCIAL SECURITY

The social insurance system in Latvia is based on individual social insurance payments into the State insurance budget. The individual insurance payments entitle the insured person to:

• Old age pension
• Disabilities pension
• Loss of support pension
• Illness benefits
• Maternity leave benefits
• Unemployment benefits and accident insurance

In comparison with the preceding year, in 1999 the average old age pension in Riga reached by 28% and equalled 59 Lats (see Figure 63 ).