Bulgaria’s average household income hikes by 12.8%

Sofia, Bulgaria: According to the data, the average income per household member in Bulgaria has witnessed a hike of 12.8% year-on-year in the fourth quarter of 2021. On the other hand, the average household expenditure per capita has also increased by around 12.1 per cent. 

The statics has been shared by the National Statistical Institute (NSI) on Tuesday. 

The institute, in its statement, further underlined that an individual had spent 1,885 levs ($1,091.1/963.8 euro) on an average basis in the month of October-December, the previous year. The income of a household equalled 2,037 levs. 

As per data shared by NSI, the wages and salaries of individuals constituted about 55.7 per cent of household income. This percentage is then followed by the pensions with 31.3% and self-employment earnings with around 4.9%. 

Meanwhile, the expenditures for food and non-alcoholic beverages produced up to around 29.3% of the household income, whereas 19.2% of the household income has been made up by the expenditure on housing. 

The contributions made by the taxes and social insurance constitutes around 12.6% of the whole household spending in the fourth quarter. The percentage is further followed by the transport and communication services that stand around 11.3 per cent. 

What exactly is average household income: 

This income is the total calculation of all the combined incomes of individuals who shares a common residence, or we can say people who live in the same home. This average includes every type of income, for instance: salaries and wages, retirement income, near cash government transfers like food stamps, and investment gains.  

The average income varies depending on the number of individuals residing in a home. This income can be utilized as an indicator of the monetary well-being of the citizens of a nation. After the payment of taxes and mandatory contributions, the mean or median are taken as arrows of the standard of living.