Footnotes

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- Methodological explanations

Data on income for the calculation of poverty and social exclusion indicators for year t (SILC survey year) are from year t-1 (SILC income reference year).

AT-RISK-OF-POVERTY THRESHOLD is defined as 60% of median equivalised (net) disposable income of all households using the OECD modified equivalence scale. The scale gives to the first adult in the household weight 1, to children under 14 weight 0.3 and to every other person 14 or more years old weight 0.5. A four-member household of two adults and two children thus has 2.1 equivalent household members (calculation: 1x1+1x0.5+2x0.3=2.1), a two-member household of two adults thus has 1.5 equivalent household members (calculation: 1x1+1x0.5=1.5). The at-risk-of-poverty threshold can be calculated for any household by multiplying the threshold for a one-person household by the number of equivalent adult household members. The threshold for a household of two adults can be calculated by multiplying the threshold for a one-member household by 1.5; the threshold for a household of two adults and two children can be calculated by multiplying the threshold for a one-member household by 2.1.

The indicator 'at-risk-of-poverty or social exclusion rate' was used to monitor the EU 2020 Strategy goals. From 2021 onwards, the achievement of the goals of the EU strategy until 2030 will be monitored with the indicator 'at-risk-of-poverty or social exclusion rate' calculated for all EU Member States according to a slightly changed methodology. According to the new methodology for calculating the 'at-risk-of-poverty or social exclusion rate', the 'at-risk-of-poverty rate' remained unchanged, the 'severe material deprivation rate' was replaced by the 'severe material and social deprivation rate' and the 'very low work intensity rate' is calculated by a slightly changed methodology.

AT-RISK-OF-POVERTY OR SOCIAL EXCLUSION RATE (EU 2030 Strategy) is the percentage of persons who are at risk of poverty or severely materially and socially deprived or living in households with very low work intensity. Persons are only counted once even if they are present in two or three sub-indicators.

AT-RISK-OF-POVERTY OR SOCIAL EXCLUSION RATE (EU 2020 Strategy) is the percentage of persons who are at risk of poverty or severely materially deprived or living in households with very low work intensity. Persons are only counted once even if they are present in two or three sub-indicators.

AT-RISK-OF-POVERTY RATE is the percentage of persons with an equivalised disposable income below the at-risk-of-poverty threshold, which is set at 60 % of the national median equivalised disposable income (after social transfers).

SEVERE MATERIAL AND SOCIAL DEPRIVATION RATE (EU 2030 Strategy) is defined as the percentage of persons that can not afford at least 7 out of 13 items due to lack of financial resources: 1) to pay rent or mortgage, utility bills, loan payments, 2) to keep home adequately warm, 3) to face unexpected expenses in the amount of at-risk-of- poverty threshold, 4) to eat meat, fish or a protein equivalent every second day, 5) a week of holiday away from home, 6) a car, 7) to replace worn-out furniture, 8) to replace worn-out clothes with some new ones, 9) to have two pairs of properly fitting shoes, 10) to get together with friends/relatives for a drink/meal at least once a month, 11) to have regular leisure activities, 12) to spend a small amount of money each week on him/herself (“pocket money”), or 13) to have an internet connection.

SEVERE MATERIAL DEPRIVATION RATE (EU 2020 Strategy) is defined as the percentage of persons that can not afford at least 4 out of 9 items due to lack of financial resources: 1) to pay rent or mortgage, utility bills, loan payments, 2) to keep home adequately warm, 3) to face unexpected expenses in the amount of at-risk-of-poverty threshold (EUR 700), 4) to eat meat, fish or a protein equivalent every second day, 5) a week of holiday away from home, 6) a car, 7) a washing machine, 8) a colour TV, 9) a telephone.

VERY LOW WORK INTENSITY RATE (EU 2030 Strategy) is the percentage of persons aged 0-64 living in households where the adults (aged 18-64) worked less than 20% of their total work potential (expressed in months) during the past year (SILC income reference year).

VERY LOW WORK INTENSITY RATE (EU 2020 Strategy) is the percentage of persons aged 0-59 living in households where the adults (aged 18-59) worked less than 20% of their total work potential (expressed in months) during the past year (SILC income reference year).

PERSISTENT AT-RISK-OF-POVERTY RATE is the percentage of persons who were below the at-risk-of-poverty threshold in the current year and at least two out of the preceding three years.

Inequality of income distribution is measured by S80/S20 quintile share ratio and Gini coefficient. The higher they are the greater is the income inequality.

S80/S20 QUINTILE SHARE RATIO is the ratio between the sum of equivalised disposable household income of the top 20% of the income distribution to the bottom 20%. The persons are classified into five quintile groups according to the net disposable income per equivalent household member. The first quintile group includes 20% of persons from the households with the lowest equivalised income, the fifth quintile group includes 20% of persons from the households with the highest equivalised ncome.

GINI COEFFICIENT is the measure of income concentration. Its value is between 0 and 1 or between 0 and 100% when it is shown in percent.