Survey on Income and Living Conditions (SILC) 2024

Quintile Share Ratio

In SILC 2024, the poorest 20% of the population had 9.7% of the nation’s nominal equivalised disposable income, while the richest 20% had 36.6%.  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 2024, 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 3.8 in 2023 and 3.9 in 2022.  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 2024 the Gini coefficient, expressed as a percentage, was 26.9%, compared with 27.5% in 2023 and 27.4% in 2022.  

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 was 45.0%. In other words, the Gini coefficient before social transfers in 2024 was 45.0%, which was down from 47.0 in 2023 and 47.5 in 2022 indicating increased equality in the distribution equivalised gross market income. 

Adding gross market income and social transfers, the Gini coefficient of equivalised gross income was 35.6% in 2024.  

Finally, after deducting tax, social insurance contributions, pension contributions and inter-household transfers paid, the Gini coefficient for net equivalised disposable income was 26.9%, down from 27.5% in SILC 2023. 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.