| Description |
The indicator reflects the purchasing power of households and their ability to invest in goods and services or save for the future, by accounting for taxes and social contributions and monetary in-kind social benefits. It is calculated as the adjusted gross disposable income of households and Non-Profit Institutions Serving Households (NPISH) divided by the purchasing power parities (PPP) of the actual individual consumption of households and by the total resident population. |
|---|---|
| Rationale |
Indicator is used to monitor progress towards SDG 10 on reducing inequality within and among countries and SDG 1 on ending poverty in all its forms everywhere, which is embedded in the European Commission’s Priorities under ‘Supporting people, strenghtening our societs and our social model’. |
| Content and progress |
The indicator is also included as main indicator in the Social Scoreboard for the European Pillar of Social Rights. The European Pillar for Social Rights, adopted in 2017, sets out a number of key principles to support fair and well-functioning labour markets and welfare systems. Those principles address topics related to inequality, by tackling both inequality of outcomes (income and wealth inequality) and inequality of opportunities: from wage-setting to social protection systems (including minimum income), gender equality, enabling social services, childcare and support to children, old-age income, health care and access to housing. While GDP per capita is used to measure the economic performance of a country, gross household disposable income provides an indication of the average material well-being of people. The indicator therefore measures whether the EU Member States are converging in terms of people’s incomes. |
| Long-term objective |
No description |
