The indicator reflects the purchasing power of households and their ability to invest in goods and services or save for the future, by accounting for taxes and social contributions and monetary in-kind social benefits. It is calculated as the adjusted gross disposable income of households and Non-Profit Institutions Serving Households (NPISH) divided by the purchasing power parities (PPP) of the actual individual consumption of households and by the total resident population. The values are also offered as an index calculated in relation to the European Union average set to equal 100. If the index of a country is higher than 100, this country's level of adjusted gross disposable income of households per person is higher than the EU average and vice versa. Please note that this index is intended for cross-country comparisons rather than for temporal comparisons. Finally, the disparities indicator offered for EU27 (from 2020) is calculated as the coefficient of variation of the national figures. This time series offers a measure of the convergence of household income between the Member States of the EU.
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