Gross and net income ratio of top 20 percent to bottom 20 percent in the EU 2022

The ratio of the top 20 percents' income to that of the bottom 20 percent of earners is a common way to measure income inequality. In the European Union, this ratio was 9.47 before taxes and 7.98 after taxes in 2022. The EU country with the highest ratio of high earners to low earners was Ireland, which had a pre-tax ratio of 15.48 and post-taxes and transfers a ratio of 12.27.

Many European countries are known for their progressive taxation systems and strong social benefits, meaning that post-taxes and social transfers, their income inequality is much lower than what it is in gross terms. This is particularly the case for countries such as Germany, which has the fourth-highest gross income inequality between its highest earners and lowest earners, but has the ninth-highest inequality ratio when taxes and transfers are factored in. The country with the smallest disparity between high and low earners in Europe was Slovakia in 2022, with a gross ratio of 4.56 and a net ratio of 4.18.