Indicator 10.30 Relative median at-risk-of-poverty gap

The indicator is calculated as the distance between the median equivalised total net income of persons below the at-risk-of-poverty threshold and the at-risk-of-poverty threshold itself, expressed as a percentage of the at-risk-of-poverty threshold. This threshold is set at 60 % of the national median equivalised disposable income of all people in a country and not for the EU as a whole.

Indicator is used to monitor progress towards SDG 10 on reducing inequality within and among countries: which is embedded in the European Commission’s Priorities under ‘Supporting people, strenghtening our societes and our social model’. The European Pillar of Social Rights sets out 20 key principles to support fair and well-functioning labour markets and welfare systems. These principles address topics related to inequality by tackling both inequality of outcomes and inequality of opportunities: from wage-setting to social-protection systems, gender equality, enabling social services, childcare and support to children, old-age income, healthcare and access to housing.

The European Pillar of Social Rights Action Plan turns the Principles of European Pillar of Social Rights into concrete actions to benefit citizens. It proposes headline targets regarding employment rate, adult participation in learning and risk of poverty and social exclusion for the EU to reach by 2030. The European Semester is a key delivery tool of the Pillar and coordinates the economic and fiscal policies of EU Member States. As part of its Green Deal, the European Commission has announced that the European Semester will be refocused to integrate the SDGs and to put sustainability and the well-being of citizens at the centre of economic policy.

No specific quantitative long-term target has been defined at European Union level for this indicator. The indicator is used for long-term monitoring of changes in GDP per capita adjusted for purchasing power parity and, at EU aggregate level, for monitoring developments in economic disparities between Member States. Long-term analysis of the indicator enables monitoring of the convergence of economic activity among EU Member States.