91
Finance, Accounting and Business Analysis
Volume 8 Issue 1, 2026
http://faba.bg/
ISSN 2603-5324
DOI:
https://doi.org/10.37075/FABA.2026.1.08
Redistributive Effect of Social Transfers in the European Union (2020 –
2024)
Rumen Brussarski
Department of Finance, University of National and World Economy, Sofia, Bulgaria
Info Articles
Abstract
History Article:
Submitted 25 April 2026
Revised 22 May 2026
Accepted 27 May 2026
Purpose: The main purpose of this article is to measure the
redistributive effect of social transfers in the European Union for the
period 2020 – 2024.
Design/Methodology/Approach: The methodology used includes:
empirical analysis of the dynamics of the Gini coefficient of equivalised
disposable income before and after social transfers in the 27 EU Member
States (2020 – 2024); measurement of the relative decrease in the Gini
coefficient as a result of pensions and other social transfers over time;
comparative analysis of results for Bulgaria and EU 27 (average).
Findings: EU Member States have quite different degrees of inequality
in income distribution before social transfers. The redistributive effect of
social transfers also varies greatly across countries. Bulgaria is among
the member states with the weakest redistributive effect of social
transfers.
Practical Implications: The findings highlight progress in social
protection and the development of the economic and social cohesion of
the member states as tasks of the Union.
Originality/Value: The article will contribute to the literature on social
protection and redistribution in the EU. We offer a comprehensive view
of the social transfer system. In most studies, attention is focused only
on pensions or only on other social transfers.
Paper Type: Research paper.
Keywords:
Incomes; redistribution;
social transfers
JEL: H53, H55, I38
Address Correspondence:
E-mail: rbrusarski@unwe.bg
Rumen Brussarski / Finance, Accounting and Business Analysis, Volume 8, Issue 1, 2026
92
INTRODUCTION
The world's first modern welfare state was built by German Chancellor Otto von Bismarck (1815 –
1898). In the 1880s, he carried out radical social reform with the adoption of a package of laws, including:
Sickness Insurance Act of 1883, Accident Insurance Act of 1884, Old Age and Disability Insurance Act of
1889, etc. Germany's pioneering experience has been followed by other countries in Europe and the world.
Bulgaria is among them (National Social Security Institute 2015). Today, social protection is one of the most
important functions of the state.
This article is dedicated to the redistributive effect of social transfers in the European Union (EU) for
the period 2020 – 2024. Part one examines the distribution of income before social transfers (pensions and
other social transfers). In part two, we measure the redistributive effect of pensions, and in part three, the
redistributive effect of other social transfers.
INCOME DISTRIBUTION BEFORE SOCIAL TRANSFERS
The distribution of income before social transfers (including pensions) depends on:
• socio-demographic characteristics (including family structures, population ageing, intra-EU
mobility, migration, etc.);
• access to education (from the very early stages of the life cycle and before entering the labor market
and carrying out economic activity);
• access to healthcare;
• access to housing;
• labor markets functioning;
• incentives for lifelong learning;
• implementing active labor market policies (European Commission. Directorate General for
Employment, Social Affairs and Inclusion 2024.)
Table 1 presents the Gini coefficient of equivalised disposable income before social transfers (pensions
included in social transfers) in the 27 EU Member States (including the EU 27 average) for a period of five
years (2020 – 2024). The Gini coefficient, developed by Corrado Gini in 1912, is a standard statistical
measure of economic inequality, ranging from 0 (perfect equality) to 100 (perfect inequality). It calculates
the distribution of income or wealth across a population (Gini 1912).
Table 1. Gini coefficient of equivalised disposable income before social transfers (pensions included in social
transfers)
(scale from 1 to 100)
2020
2021
2022
2023
2024
EU 27
50.5
51.8
48.8
48.4
47.8
Belgium
46.1
47.6
46.6
46.3
46.7
Bulgaria
53.4
54.0
52.4
52.9
53.8
Czechia
42.3
44.1
43.1
42.6
42.4
Denmark
49.4
49.2
48.6
48.4
48.0
Germany
54.9
56.4
48.9
48.9
48.7
Estonia
44.7
45.5
45.3
45.4
45.7
Ireland
46.2
46.5
44.7
44.0
41.8
Greece
53.9
54.1
51.7
52.6
51.9
Spain
46.9
50.1
48.1
46.3
45.3
France
57.8
58.8
55.3
54.5
53.3
Croatia
47.2
48.5
44.7
45.0
44.4
Italy
47.6
49.8
49.2
48.0
48.4
Cyprus
47.3
47.2
42.8
41.8
42.7
Latvia
46.8
48.2
46.9
47.0
47.0
Lithuania
49.6
51.2
51.5
51.2
50.5
Luxembourg
58.5
52.2
44.4
45.2
45.7
Hungary
46.4
44.0
43.0
44.0
43.2
Malta
43.9
45.0
44.9
44.0
42.0
Netherlands
47.1
47.0
46.5
47.1
46.2
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93
2020
2021
2022
2023
2024
Austria
46.7
47.5
47.4
47.4
47.8
Poland
45.3
44.7
44.1
44.4
44.5
Portugal
54.4
55.9
48.9
49.7
48.0
Romania
50.5
52.2
49.7
50.1
45.5
Slovenia
42.3
42.8
41.5
41.4
41.5
Slovakia
38.1
39.7
39.1
37.7
40.9
Finland
48.9
49.4
49.5
48.5
48.0
Sweden
56.0
56.9
46.7
48.1
45.5
Source: Eurostat. 2026a. Gini Coefficient of Equivalised Disposable Income before Social Transfers
(Pensions Included in Social Transfers).
https://doi.org/10.2908/ILC_DI12B.
The Member States with the highest persistent inequality in the distribution of equivalised disposable
income before social transfers (including pensions) are:
• France – Gini coefficient from 58.8 (highest value) to 53.3 (lowest value);
• Bulgaria – Gini coefficient from 54.0 (highest value) to 52.4 (lowest value);
• Greece – Gini coefficient from 54.1 (highest value) to 51.7 (lowest value).
At the other extreme (with the lowest degree of inequality in the distribution of equivalised disposable
income before social transfers /including pensions/) are:
• Slovakia – Gini coefficient from 37.7 (lowest value) to 40.9 (highest value);
• Slovenia – Gini coefficient from 41.4 (lowest value) to 42.9 (highest value);
• Czechia – Gini coefficient from 42.3 (lowest value) to 44.1 (highest value).
Thus, within the research period, the highest value of the Gini coefficient of equivalised disposable
income before social transfers (including pensions) was recorded in France (58.8 in 2021), and the lowest –
in Slovakia (37.7 in 2023).
In dynamics, most countries maintain a relatively stable level of the Gini coefficient of equivalised
disposable income before social transfers (including pensions) with a slight tendency to decrease, with the
exception of Lithuania, Estonia and Austria, where inequality is slightly increasing. The largest decline in
the Gini coefficient for the period was shown by Luxembourg (nearly 13 points) and Sweden (over 11 points)
– see Table 1.
Source: Eurostat. 2026a. Gini Coefficient of Equivalised Disposable Income before Social Transfers
(Pensions Included in Social Transfers).
https://doi.org/10.2908/ILC_DI12B.
Figure 1. Gini coefficient of equivalised disposable income before social transfers (pensions included in
social transfers): Bulgaria and the EU 27
53,4
54
52,4
52,9
53,8
50,5
51,8
48,8
48,4
47,8
44
45
46
47
48
49
50
51
52
53
54
55
2020 2021 2022 2023 2024
Gini coefficient of equivalised disposable
income before social transfers (pensions
included in social transfers)
Year
Bulgaria EU 27
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94
The differential between the Gini coefficient of equivalised disposable income before social transfers
(including pensions) in Bulgaria and the EU 27 average increases from around 3 points at the beginning of
the period to 6 points in 2024 (see Figure 1).
PENSIONS
Pensions are the most solid social transfer. People in the EU are having fewer children, living longer
and the population is aging. According to Eurostat data, the total number of live births in the EU has
decreased from 6.80 million children in 1964 to 3.55 million children in 2024 (almost 2 times in 6 decades).
For the same period the total fertility rate (the number of live births per woman) dropping from 2.62 in 1964
to 1.34 in 2024 (also almost 2 times). In 2024 the highest total fertility rate was recorded in Bulgaria (1.72),
and the lowest in Malta (1.01).
In 2024, life expectancy at birth in the EU was 81.7 years. Тhe highest life expectancy at birth was
recorded in Italy and Sweden (both 84.1 years), and the lowest in Bulgaria (75.9 years). Thus, in 2024
the median age of the EU’s population reached 44.7 years (from 39.4 years in Ireland to 48.7 years in Italy).
Over 1/5 of the EU population is aged 65 or older. Almost half (over 45%) of people aged 50–74 in the EU receive
some form of pension.
The current European system of integrated social protection statistics (ESSPROS) Manual and User
Guidelines identifies seven pension categories (Eurostat 2016):
• Disability pension (periodic payments intended to maintain or support the income of someone
below the reference retirement age who suffers from a disability which impairs his or her ability to work or
earn beyond a minimum level laid down by legislation).
• Early retirement benefit due to reduced capacity to work.
• Old-age pension (periodic payments intended to maintain the income of the beneficiary after
retirement from gainful employment at the reference age or to support the income of elderly persons
/excluding support of limited duration/).
• Anticipated old-age pension (periodic payments intended to maintain the income of beneficiaries
who retire before the reference age as established in the relevant scheme).
• Partial pension (periodic payment of a portion of the full retirement pension to older workers who
continue to work but reduce their working hours or whose income from a professional activity is below a set
ceiling).
• Survivors’ pension (periodic payments to people whose entitlement derives from their relationship
with a deceased person protected by the scheme /widows, widowers, orphans and similar/).
• Early retirement benefit due to labor market reasons.
Table 2 presents the Gini coefficient of equivalent disposable income before social transfers (pensions
excluded from social transfers) in the 27 EU Member States (including the EU-27 average) for the research
period. Comparing the data with those in Table 1, the significant decrease in the Gini coefficient as a result
of pensions is clearly visible. An interesting detail is that the only country with a Gini coefficient after
pensions consistently above 40 for the entire period is Bulgaria (see Table 2). Only Lithuania is close to our
result. At the other extreme is Slovakia with a Gini coefficient after pensions of 25 – 26. In the other member
states, the Gini coefficient after pensions varies over a fairly wide range (between 28 and 38).
Table 2. Gini coefficient of equivalised disposable income before social transfers (pensions excluded from
social transfers)
(scale from 1 to 100)
2020
2021
2022
2023
2024
EU 27
34.9
35.9
34.9
34.7
34.3
Belgium
32.7
32.9
32.8
31.9
32.6
Bulgaria
43.2
43.9
41.6
40.6
41.7
Czechia
27.5
28.7
28.2
27.9
27.1
Denmark
35.4
35.7
35.2
35.5
35.9
Germany
36.2
38.1
35.6
35.8
35.5
Estonia
34.9
35.1
35.8
35.8
35.3
Ireland
37.3
37.6
36.8
36.5
34.3
Greece
34.5
35.7
34.2
34.7
34.6
Spain
35.5
38.3
36.2
35.0
34.6
France
36.9
37.4
37.5
37.2
37.0
Croatia
31.6
32.3
31.1
32.4
32.2
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95
2020
2021
2022
2023
2024
Italy
35.2
37.2
36.7
35.7
36.3
Cyprus
32.8
32.7
31.8
31.7
32.3
Latvia
37.2
38.5
37.3
36.8
36.9
Lithuania
39.5
40.5
41.3
40.4
39.8
Luxembourg
37.8
35.4
33.1
34.5
34.0
Hungary
32.6
30.8
29.6
31.5
30.5
Malta
33.5
34.5
34.2
35.0
33.7
Netherlands
33.0
32.1
31.7
32.2
31.6
Austria
33.0
33.5
33.7
33.8
33.9
Poland
31.1
30.6
30.1
30.6
30.4
Portugal
34.1
35.8
35.0
36.3
34.5
Romania
36.3
36.5
34.6
33.3
30.8
Slovenia
28.6
28.0
27.1
27.5
27.9
Slovakia
24.9
26.6
25.3
25.7
26.7
Finland
34.3
34.2
34.7
34.1
33.6
Sweden
35.3
35.5
34.4
35.7
33.6
Source: Eurostat. 20206b. Gini Coefficient of Equivalised Disposable Income before Social Transfers
(Pensions Excluded from Social Transfers).
https://doi.org/10.2908/ILC_DI12C.
For a more precise assessment of the effect of pensions on the distribution of equivalised disposable
income, we calculate the percentage change in Gini coefficient of equivalised disposable income due to
pensions. The formula is:
(1)
where:
G
P
is percentage change in Gini coefficient of equivalised disposable income due to pensions;
G
2
– Gini coefficient of equivalised disposable income before social transfers (pensions excluded from social
transfers);
G
1
– Gini coefficient of equivalised disposable income before social transfers (pensions included in social
transfers).
The results are presented in Table 3.
Table 3. Percentage change in Gini coefficient of equivalised disposable income due to pensions
(%)
2020
2021
2022
2023
2024
EU 27
-30.9
-30.7
-28.5
-28.3
-28.2
Belgium
-29.1
-30.9
-29.6
-31.1
-30.2
Bulgaria
-19.1
-18.7
-20.6
-23.3
-22.5
Czechia
-35.0
-34.9
-34.6
-34.5
-36.1
Denmark
-28.3
-27.4
-27.6
-26.7
-25.2
Germany
-34.1
-32.4
-27.2
-26.8
-27.1
Estonia
-21.9
-22.9
-21.0
-21.1
-22.8
Ireland
-19.3
-19.1
-17.7
-17.0
-17.9
Greece
-36.0
-34.0
-33.8
-34.0
-33.3
Spain
-24.3
-23.6
-24.7
-24.4
-23.6
France
-36.2
-36.4
-32.2
-31.7
-30.6
Croatia
-33.1
-33.4
-30.4
-28.0
-27.5
Italy
-26.1
-25.3
-25.4
-25.6
-25.0
Cyprus
-30.7
-30.7
-25.7
-24.2
-24.4
Latvia
-20.5
-20.1
-20.5
-21.7
-21.5
Lithuania
-20.4
-20.9
-19.8
-21.1
-21.2
Luxembourg
-35.4
-32.2
-25.5
-23.7
-25.6
Hungary
-29.7
-30.0
-31.2
-28.4
-29.4
Malta
-23.7
-23.3
-23.8
-20.5
-19.8
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2020
2021
2022
2023
2024
Netherlands
-29.9
-31.7
-31.8
-31.6
-31.6
Austria
-29.3
-29.5
-28.9
-28.7
-29.1
Poland
-31.3
-31.5
-31.7
-31.1
-31.7
Portugal
-37.3
-36.0
-28.4
-27.0
-28.1
Romania
-28.1
-30.1
-30.4
-33.5
-32.3
Slovenia
-32.4
-34.6
-34.7
-33.6
-32.8
Slovakia
-34.6
-33.0
-35.3
-31.8
-34.7
Finland
-29.9
-30.8
-29.9
-29.7
-30.0
Sweden
-37.0
-37.6
-26.3
-25.8
-26.2
Source: Author’s own calculations
The largest relative decrease in the Gini coefficient as a result of pensions is present in:
• Sweden: -37.6% (2021);
• Portugal: -37.3% (2020);
• France: -36.4% (2021).
Several countries show a high and persistent relative decrease in the Gini coefficient due to pensions:
• Czechia – between -36.1% and -34.5%;
• Greece – between -36.0% and -33.3%;
• Slovakia – between -35.3% and -31.8%;
• Slovenia – between -34.7% and -32.4%.
At the other extreme (with the smallest relative decrease in the Gini coefficient, as a result of pensions)
are:
• Ireland: -17.0% (2023);
• Bulgaria: -18.7% (2021);
• Lithuania (2022) and Malta (2024): -19.8%.
Some countries show a small and persistent relative decrease in the Gini coefficient due to pensions:
• Latvia – between -20.1% and -21.7%;
• Estonia – between -21.0% and -22.9%;
• Spain – between -23.6% and -24.7%;
• Italy – between -25.0% and -26.1%.
In the remaining EU member states, the relative change in the Gini coefficient of equivalised
disposable income as a result of pensions is around -30% (see Table 3).
Source: Author’s own calculations
Figure 2. Percentage change in Gini coefficient of equivalised disposable income due to pensions: Bulgaria
and the EU 27
-19,1
-18,7
-20,6
-23,3
-22,5
-30,9
-30,7
-28,5
-28,3
-28,2
-35
-30
-25
-20
-15
-10
-5
0
2020 2021 2022 2023 2024
Percentage change in Gini coefficient of
equivalised disposable income due to pensions
Year
Bulgaria EU 27
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The relative decrease in the Gini coefficient as a result of pensions in Bulgaria is smaller than in the
EU 27 (average), but the difference is decreasing (from nearly -12 percentage points in 2020 to below -6
percentage points at the end of the period) – see Figure 2.
SOCIAL TRANSFERS (PENSIONS EXCLUDED FROM SOCIAL TRANSFERS)
This part of the paper is dedicated to the redistributive effect of other social transfers (all social
transfers that are not pensions). In fact, they provide social protection across the entire spectrum of risks and
needs defined by the ESSPROS Manual and User Guidelines (Eurostat 2016):
• Sickness/Health care;
• Disability;
• Old age;
• Survivors;
• Family/children;
• Unemployment;
• Housing;
• Social exclusion not elsewhere classified.
Other social transfers include:
• cash payments to protected people;
• reimbursements of expenditure made by protected people;
• goods and services directly provided to protected people.
Table 4 presents the Gini coefficient of equivalised disposable income after pensions and other social
transfers in the 27 EU Member States (including the EU-27 average) for the research period.
Table 4. Gini coefficient of equivalised disposable income
(scale from 1 to 100)
2020
2021
2022
2023
2024
EU 27
30.0
30.2
29.6
29.6
29.4
Belgium
25.3
24.1
24.7
24.3
24.6
Bulgaria
40.0
39.7
38.4
37.2
38.4
Czechia
24.2
24.8
24.8
24.4
23.7
Denmark
27.3
27.0
27.7
28.2
28.6
Germany
30.5
31.2
29.0
29.4
29.5
Estonia
30.5
30.6
31.9
31.8
30.8
Ireland
27.6
26.6
26.9
27.4
26.4
Greece
31.4
32.4
31.4
31.8
31.8
Spain
32.1
33.0
32.0
31.5
31.2
France
29.2
29.3
29.8
29.7
30.0
Croatia
28.3
29.2
28.5
29.7
29.8
Italy
32.5
32.9
32.7
31.5
32.2
Cyprus
29.3
29.3
29.0
29.3
30.1
Latvia
34.5
35.7
34.3
34.0
34.2
Lithuania
35.1
35.4
36.2
35.7
35.3
Luxembourg
31.2
29.6
29.1
30.6
30.1
Hungary
28.2
27.4
26.9
28.6
28.0
Malta
30.3
31.2
31.1
33.0
30.8
Netherlands
28.2
26.4
26.3
26.5
25.9
Austria
27.0
26.7
27.8
28.1
28.4
Poland
27.2
26.8
26.3
27.0
26.0
Portugal
31.2
33.0
32.0
33.7
31.9
Romania
33.8
34.3
32.0
31.0
28.0
Slovenia
23.5
23.0
23.1
23.4
23.8
Slovakia
20.9
21.8
21.2
21.6
21.7
Finland
26.5
25.7
26.6
26.6
26.1
Sweden
26.9
26.8
27.6
29.5
27.6
Source: Eurostat. 2026c. Gini coefficient of equivalised disposable income.
https://doi.org/10.2908/TESSI190.
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98
Comparing the data with those in Table 2, the significant decrease in the Gini coefficient as a result
of other social transfers is clearly visible. The country with the highest Gini coefficients of equivalised
disposable income after all social transfers is Bulgaria – 40 in 2020 and slightly lower thereafter. At the other
extreme (the country with the lowest Gini coefficients of equivalised disposable income after all social
transfers) is Slovakia – 20.9 in 2020 and slightly higher thereafter (see Table 4).
Countries with a relatively high Gini coefficient of equivalised disposable income after social transfers
are Lithuania (over 35) and Latvia (over 34), and countries with a relatively low Gini coefficient of
equivalised disposable income after social transfers are Slovenia (a little over 23), Czechia and Belgium (a
little over 24) and Finland (a little over 25). In the other member states, the Gini coefficient after social
transfers ranges between 26 and 33.
For a more precise assessment of the effect of other social transfers (all social transfers that are not
pensions) on the distribution of equivalised disposable income, we calculate the percentage change in Gini
coefficient of equivalised disposable income due to other social transfers. The formula is:
(1)
where:
G
ST
is percentage change in Gini coefficient of equivalised disposable income due to other social transfers;
G
4
– Gini coefficient of equivalised disposable income;
G
2
– Gini coefficient of equivalised disposable income before social transfers (pensions excluded from social
transfers).
The results are presented in Table 5.
Table 5. Percentage change in Gini coefficient of equivalised disposable income due to social transfers
(pensions excluded from social transfers)
(%)
2020
2021
2022
2023
2024
EU 27
-14.0
-15.9
-15.2
-14.7
-14.3
Belgium
-22.6
-26.7
-24.7
-23.8
-24.5
Bulgaria
-7.4
-9.6
-7.7
-8.4
-7.9
Czechia
-12.0
-13.6
-12.1
-12.5
-12.5
Denmark
-22.9
-24.4
-21.3
-20.6
-20.3
Germany
-15.7
-18.1
-18.5
-17.9
-16.9
Estonia
-12.6
-12.8
-10.9
-11.2
-12.7
Ireland
-26.0
-29.3
-26.9
-24.9
-23.0
Greece
-9.0
-9.2
-8.2
-8.4
-8.1
Spain
-9.6
-13.8
-11.6
-10.0
-9.8
France
-20.9
-21.7
-20.5
-20.2
-18.9
Croatia
-10.4
-9.6
-8.4
-8.3
-7.5
Italy
-7.7
-11.6
-10.9
-11.8
-11.3
Cyprus
-10.7
-10.4
-8.8
-7.6
-6.8
Latvia
-7.3
-7.3
-8.0
-7.6
-7.3
Lithuania
-11.1
-12.6
-12.3
-11.6
-11.3
Luxembourg
-17.5
-16.4
-12.1
-11.3
-11.5
Hungary
-13.5
-11.0
-9.1
-9.2
-8.2
Malta
-9.6
-9.6
-9.1
-5.7
-8.6
Netherlands
-14.5
-17.8
-17.0
-17.7
-18.0
Austria
-18.2
-20.3
-17.5
-16.9
-16.2
Poland
-12.5
-12.4
-12.6
-11.8
-14.5
Portugal
-8.5
-7.8
-8.6
-7.2
-7.5
Romania
-6.9
-6.0
-7.5
-6.9
-9.1
Slovenia
-17.8
-17.9
-14.8
-14.9
-14.7
Slovakia
-16.1
-18.0
-16.2
-16.0
-18.7
Finland
-22.7
-24.9
-23.3
-22.0
-22.3
Sweden
-23.8
-24.5
-19.8
-17.4
-17.9
Source: Author’s own calculations
Rumen Brussarski / Finance, Accounting and Business Analysis, Volume 8, Issue 1, 2026
99
The largest relative decrease in the Gini coefficient as a result of other social transfers is present in:
• Ireland: -29.3% (2021);
• Belgium: -26.7% (2021);
• Finland: -24.9% (2021).
Several countries show a high and persistent relative decrease in the Gini coefficient due to other
social transfers:
• Sweden – between -24.5% and -17.4%;
• Denmark – between -24.4% and -20.3%;
• France – between -21.7% and -18.9%.
At the other extreme (with the smallest relative decrease in the Gini coefficient, as a result of other
social transfers) are:
• Malta: -5.7% (2023);
• Romania: -6.0% (2021);
• Cyprus: -6.8% (2024).
Some countries show a small and persistent relative decrease in the Gini coefficient due to other social
transfers:
• Portugal – between -7.2% and -8.6%;
• Latvia – between -7.3% and -8.0%;
• Bulgaria – between -7.4% and -9.6%.
In the remaining EU member states, the relative change in the Gini coefficient of equivalised
disposable income as a result of other social transfers varies over a fairly wide range (between -20% and -
10%) – see Table 5.
Source: Author’s own calculations
Figure 3. Percentage change in Gini coefficient of equivalised disposable income due to social transfers
(pensions excluded from social transfers): Bulgaria and the EU 27
The relative decrease in the Gini coefficient as a result of other social transfers in Bulgaria is smaller
than in the EU 27 (average) and the difference is relatively constant (around 7 percentage points) – see Figure
3.
CONCLUSION
The member states with the highest persistent inequality in the distribution of equivalised disposable
income before pensions and other social transfers are France, Bulgaria and Greece, and the member states
with the lowest degree of inequality in the distribution of equivalised disposable income before pensions and
other social transfers are Slovakia, Slovenia and Czechia. In dynamics, most countries maintain a relatively
-7,4
-9,6
-7,7
-8,4
-7,9
-14,0
-15,9
-15,2
-14,7
-14,3
-18
-16
-14
-12
-10
-8
-6
-4
-2
0
2020 2021 2022 2023 2024
Percentage change in Gini coefficient of
equivalised disposable income due to social
transfers (pensions excluded from social
transfers)
Year
Bulgaria EU 27
Rumen Brussarski / Finance, Accounting and Business Analysis, Volume 8, Issue 1, 2026
100
stable level of the Gini coefficient of equivalised disposable income before pensions and other social transfers
with a slight tendency to decrease, with the exception of Lithuania, Estonia and Austria, where inequality
is slightly increasing.
The largest relative decrease in the Gini coefficient as a result of pensions is present in Sweden,
Portugal and France, and the smallest relative decrease in the Gini coefficient, as a result of pensions was
recorded in Ireland, Bulgaria and Lithuania.
The largest relative decrease in the Gini coefficient as a result of other social transfers is present in
Ireland, Belgium and Finland, and the smallest relative decrease in the Gini coefficient, as a result of other
social transfers was recorded in Malta, Romania and Cyprus.
The relative decrease in the Gini coefficient as a result of pensions and other social transfers in
Bulgaria is smaller than in the EU 27 (average).
Acknowledgments
Not applicable.
Funding
This work was financially supported by the University of National and World Economy Research
Programme (Research Grant No. 4/2026/A).
Data Available Statement
The data used is publicly available. The author can provide additional information upon request.
Conflict of interest
The author declares no conflict of interest.
AI Tools Statement
The author confirm that no AI tools were used in the preparation of this manuscript.
Author contribution
Not applicable.
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