Development of the average net income in the EU

Definition of Income:

“The total disposable income of a household is calculated by adding together the personal income received by all of household members plus income received at household level. Missing income information is imputed.” – Eurostat

Disposable household income includes:

– all income from work (employee wages and self-employment earnings)

– private income from investment and property

– transfers between households

– all social transfers received in cash including old-age pensions

Equivalence scale:

“To take into account the impact of differences in household size and composition, the total disposable household income is “equivalised”. The equivalised income attributed to each member of the household is calculated by dividing the total disposable income of the household by the equivalisation factor. Equivalisation factors can be determined in various ways. Eurostat applies an equivalisation factor calculated according to the OECD-modified scale first proposed in 1994 – which gives a weight of 1.0 to the first person aged 14 or more, a weight of 0.5 to other persons aged 14 or more and a weight of 0.3 to persons aged 0-13.” – Eurostat

Household definition:

“A ‘private household’ means “a person living alone or a group of people who live together in the same private dwelling and share expenditures, including the joint provision of the essentials of living”. EU-SILC implementing regulation number 1983/2003 on updated definitions, defines households in terms of sharing household expenses and (for non-permanent members) in terms of duration of stay and (for temporarily absent members) in terms of duration of absence.” –  Eurostat

Data Source:



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