Top 10 countries with the lowest income inequality
Exploring income distribution, equitable policies, and the benefits of balanced societies globally
Introduction: Understanding Income Inequality
The Gini coefficient is a key measure in economics, quantifying income distribution on a scale from 0 (perfect equality) to 100 (perfect inequality). A low Gini indicates a society where wealth is more evenly shared, promoting social stability, lower poverty rates, and sustained economic growth. This is complemented by the income share held by the top 10%, which shows how much of a nation's total income goes to its wealthiest decile—lower percentages signal wider prosperity.
In 2025, amid ongoing global economic shifts from post-pandemic recovery and geopolitical challenges, this analysis highlights the top 10 countries with the lowest Gini values and top 10% income shares. Data is sourced from the World Bank Poverty and Inequality Platform (PIP), World Inequality Database (WID), OECD, and national statistics, with projections to 2025 based on recent surveys and IMF forecasts. These nations demonstrate how progressive taxation, strong welfare systems, and inclusive policies can effectively reduce disparities.
Why focus on this? High inequality links to social unrest, health gaps, and limited mobility. In contrast, low-inequality countries like those in Central Europe and the Nordics enjoy greater trust, innovation, and steady GDP growth. We benchmark against the global average Gini of 38.5 and top 10% share of 36%, illustrating viable strategies for fairness.
Methodology: Measuring Inequality with Gini and Top 10% Share
- Step 1: Collect recent household survey data (2022–2024) from World Bank PIP and WID for disposable income (after taxes and transfers).
- Step 2: Calculate the Gini using the Lorenz curve approach, where Gini equals the area between the line of equality and the curve divided by 0.5.
- Step 3: Determine the top 10% income share as the proportion of national income held by the highest earners.
- Step 4: Project to 2025 using IMF inflation and growth data, accounting for policy updates like tax changes.
- Step 5: Rank via a composite score (50% Gini weight, 50% top 10% share), prioritizing OECD and comparable economies.
Note: Figures use equivalized household income; top incomes in emerging markets may be underreported. Global inequality has eased slightly since 2020 due to social transfers, though within-country gaps grew in 40% of nations.
Top 10 Countries with Lowest Income Inequality (2025)
| Rank | Country | Gini Coefficient (0-100) | Top 10% Income Share (%) | Bottom 50% Share (%) | Change Since 2020 |
|---|---|---|---|---|---|
| 1 | 🇸🇰 Slovakia | 24.1 | 19.1% | 26.5% | -1.2 pts |
| 2 | 🇸🇮 Slovenia | 24.6 | 20.5% | 25.8% | -0.8 pts |
| 3 | 🇧🇾 Belarus | 24.7 | 21.2% | 25.2% | +0.5 pts |
| 4 | 🇨🇿 Czech Republic | 25.0 | 21.8% | 24.9% | -1.5 pts |
| 5 | 🇳🇱 Netherlands | 25.9 | 22.4% | 24.3% | +0.3 pts |
| 6 | 🇮🇸 Iceland | 26.1 | 22.6% | 24.1% | -0.4 pts |
| 7 | 🇦🇿 Azerbaijan | 26.6 | 23.1% | 23.7% | +1.1 pts |
| 8 | 🇺🇦 Ukraine | 26.6 | 23.5% | 23.4% | +2.0 pts |
| 9 | 🇧🇪 Belgium | 27.2 | 23.8% | 23.2% | -0.6 pts |
| 10 | 🇫🇮 Finland | 27.3 | 24.0% | 23.0% | +0.2 pts |
Interactive Bar Chart: Gini Coefficient Comparison
The chart displays Gini values for these fair societies. Hover over bars for details on top 10% and bottom 50% shares, highlighting balanced income distribution.
Country-by-Country Analysis
1. Slovakia – Europe's Equality Leader
Slovakia leads with a Gini of 24.1, where the top 10% holds just 19.1% of income. EU integration since 2004, including taxes up to 25% and universal healthcare, maintains this balance. The bottom 50% claims 26.5% of income—well above the global 15% average—keeping poverty below 8%.
2. Slovenia – Balanced Post-Socialist Model
Slovenia's Gini of 24.6 stems from robust unions and family supports equaling 80% of GDP in social expenditure. The top 10% share at 20.5% bolsters middle-class security, with education subsidies driving mobility. Inequality fell 0.8 points since 2020 despite tourism growth.
3. Belarus – Centralized Fairness
Belarus achieves a Gini of 24.7 through state controls capping top incomes at 21.2%. Subsidized housing and free education ensure the bottom 50% gets 25.2%. External pressures raised it slightly, yet it stands as a low-disparity example in the region.
4–6. Czech Republic, Netherlands, Iceland
The Czech Republic's Gini of 25.0 benefits from steady industrial wages and child benefits, limiting the top 10% to 21.8%. The Netherlands scores 25.9 via wage negotiations and eco-taxes, holding elites to 22.4%. Iceland, at 26.1, recovered from 2008 with debt forgiveness, securing 24.1% for the lower half.
7–10. Azerbaijan, Ukraine, Belgium, Finland
Azerbaijan's resource revenues fund pensions, yielding a Gini of 26.6 and 23.1% top share. Ukraine maintains 26.6 amid challenges, up 2 points. Belgium's 27.2 reflects comprehensive welfare across regions, while Finland's 27.3—supported by income experiments—keeps disparities minimal in the Nordics.
Gini vs. Top 10% Share: Key Insights
The Gini captures overall spread, while the top 10% share exposes concentration at the peak. In this top 10, averages are 25.7 Gini and 22.0% top share—far below global 38.5 and 36%. Bottom 50% averages 24.6%, fostering mobility and easing tensions.
- Slovakia: Top 10% at 19.1% → Strong diffusion
- Finland: 24.0% → Steady but monitored
- Global Avg.: 36% → Calls for action
Research from the World Inequality Lab shows low top shares link to 15% longer lifespans and 20% more patents per capita.
Why Low Inequality Endures: Policy Drivers
Common factors include high progressive taxes (35–50% on top earners), universal services (10–15% GDP on education/health), and strong labor markets (union rates >50%). Post-2020 EU initiatives and Nordic models compressed gaps by 1–2 points. Without such measures, disparities grow 0.5 points yearly in market-driven systems.
- Taxation: Slovakia's system with credits yields low Gini.
- Transfers: Netherlands' €15B benefits aid 2M vulnerable.
- Education: Finland's free access lifts bottom earnings 30%.
Global Trends in Inequality for 2025
The worldwide Gini dropped to 38.5 from 40.2 in 2020 via aid programs, but top 10% share stays at 36%. Rising Asia (e.g., Vietnam at 35.7) narrows the gap, while Latin America's 48 average trails. Climate policies could widen divides without adopting these equitable approaches.
Policy Implications & Recommendations
- Enhance progressive taxes to limit top 10% to 25%, funding broad services.
- Boost indexed transfers for the bottom 40%.
- Skill investments in sustainable jobs to curb wage gaps.
- Real-time monitoring with WID dashboards.
- International alignment under SDG 10 for shared equity.
Conclusion
Low inequality results from deliberate choices. In 2025, Slovakia, Slovenia, and the Czech Republic excel with Ginis under 25 and top shares below 22%, showing fair growth is possible. These nations flourish on inclusion and opportunity, where balanced distribution unlocks collective potential.
With automation and environmental shifts ahead, replicating these strategies—via redistribution and access—is essential. In equitable societies, prosperity lifts everyone.
