Survey on Income and Living Conditions (SILC) 2023

Quintile Share Ratio

In SILC 2023, the poorest 20% of the population had 9.6% of the nation’s nominal equivalised disposable income, while the richest 20% had 37.0%.  See figure 4.1.

The quintile share ratio is the ratio of the total equivalised disposable income received by the 20% of persons with the highest income (fifth quintile) to that received by the 20% of persons with the lowest income (first quintile). 

In SILC 2023, the quintile share ratio stood at 3.8, indicating that the total income of the richest 20% was almost four times that of the poorest 20%. The corresponding value was 3.9 in 2022 and 3.7 in 2021.  See table 4.2.

Gini Coefficient

The Gini coefficient measures income equality across the entire income distribution.  It is the ratio of the area between the line of perfect equality and the observed Lorenz curve to the area between the line of perfect equality and the line of perfect inequality.  A Gini coefficient value of 0% denotes perfect equality, indicating that income is distributed equally amongst all persons.  A Gini Coefficient of 100% would denote perfect inequality where all the income is held by one person. 

In SILC 2023 the Gini coefficient, expressed as a percentage, was 27.5%, compared with 27.4% in 2022 and 26.7% in 2021

The Gini coefficient is typically calculated on equivalised disposable income. If calculated using equivalised gross market income only (i.e. employment, pension and other income) the Gini coefficient would have been 47.0%. In other words the Gini coefficient before social transfers in 2023 was 47.0%.

Adding gross market income and social transfers, the Gini coefficient (after social transfers) was 36.5% in 2023.

Finally, after deducting tax, social insurance contributions, pension contributions and inter-household transfers paid, the Gini coefficient for net equivalised disposable income was 27.5%. This illustrates the income redistributive effect of the social welfare and taxation systems on reducing income inequality. See figure 4.2 and table 4.3.