EUROMOD is a tax-benefit microsimulation model that enables to calculate, in a comparable manner, the effects of taxes and benefits on household incomes and work incentives for the population of each EU country and for the EU as a whole.

EUROMOD applies user-defined tax and benefit policy rules to harmonised micro-data on individuals and households, calculates the effects of these rules on household income, and then outputs results – still at the micro level. The effects of different policy scenarios can be analysed and compared in the user’s chosen statistical software.

EUROMOD consists of three parts:

  1. Database – the Estonian country component of EUROMOD uses microdata from Estonian Social Survey (by Satistics Estonia); for cross-country comparison usually data from EU-SILC (European Union Survey of Income and Living Conditions) is used, which is EU-level version of the Estonian Social Survey, although including less variables.
  2. Policy rules and parameters of tax and benefit systems in 2005-2023, including hypothetical rules. The rules also depend on the available variables in microdata.
  3. Technical programme files for managing the workflow of the model and coducting simulations.


EUROMOD aims to simulate as much as possible of the tax and benefit components of household disposable income. Generally, the following instruments are simulated in all countries:

  • income taxes (national and local),
  • social contributions (paid by the employees, self-employed and employers),
  • family benefits,
  • housing benefits,
  • social assistance and other income-related benefits.


Euromod in English