Adequacy of Guaranteed Minimum Income benefits
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This indicator measures the income of jobless families relying on minimum-income safety-net benefits as a percentage of the median disposable income in the population. This can be compared with a poverty line defined as a fixed percentage of median income. For instance, if the poverty threshold is 50% of median income, a value of 30% means that benefit entitlements alleviate poverty risks of 60%

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1. Both the numerator and denominator are adjusted for family size ("equivalised") using the square root of family size.
2. Median disposable incomes are calculated for the whole population, before housing costs (or other forms of “committed” expenditure). Values are from national surveys in or close to the reference year.
3. The net household income of the family claiming GMI benefits includes only cash benefit entitlements and no other income sources. No entitlement to unemployment benefits is assumed.
4. Where GMI benefit entitlements change over time, calculations refer to the second month of benefit receipt. Where receipt of GMI benefits is subject to activity tests, such as active job-search or being available for work, these requirements are assumed to be met by all household members.
5. Where benefit rules are not determined on a national level but vary by region or municipality, results refer to a “typical” case (e.g. Michigan in the United States, the capital in some other countries). A full description of the policies included in the calculations for each country is available
here.
6. Family benefits are included in the calculations subject to relevant income and eligibility conditions. Calculations for families with children are for families with two children aged 4 and 6. Neither childcare benefits nor childcare costs are considered. Adults are aged 40, are both out of work, and are assumed to have full work capacity.
7. If housing benefits are included in the calculations, these are calculated assuming a household renting in the private market paying rent equal to 20% of the average wage. Rent levels are the same for all family types.
8. For a detailed description of the assumptions underlying the OECD Tax-Benefit model and the related policy indicators, please see the methodology document.
9. For more information, visit the project webpage or contact the OECD tax-benefit team.

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The first preliminary release of year T-1 indicators is in February. As this release is based on projected wage values and preliminary information on tax rules, any use of these indicators should include the following disclaimer: “Results based on preliminary data and wage estimates”. The second final release of year T-1 indicators is scheduled in April.

Adequacy of Guaranteed Minimum Income benefitsAbstract

This indicator measures the income of jobless families relying on minimum-income safety-net benefits as a percentage of the median disposable income in the population. This can be compared with a poverty line defined as a fixed percentage of median income. For instance, if the poverty threshold is 50% of median income, a value of 30% means that benefit entitlements alleviate poverty risks of 60%

Other data characteristics

1. Both the numerator and denominator are adjusted for family size ("equivalised") using the square root of family size.
2. Median disposable incomes are calculated for the whole population, before housing costs (or other forms of “committed” expenditure). Values are from national surveys in or close to the reference year.
3. The net household income of the family claiming GMI benefits includes only cash benefit entitlements and no other income sources. No entitlement to unemployment benefits is assumed.
4. Where GMI benefit entitlements change over time, calculations refer to the second month of benefit receipt. Where receipt of GMI benefits is subject to activity tests, such as active job-search or being available for work, these requirements are assumed to be met by all household members.
5. Where benefit rules are not determined on a national level but vary by region or municipality, results refer to a “typical” case (e.g. Michigan in the United States, the capital in some other countries). A full description of the policies included in the calculations for each country is available
here.
6. Family benefits are included in the calculations subject to relevant income and eligibility conditions. Calculations for families with children are for families with two children aged 4 and 6. Neither childcare benefits nor childcare costs are considered. Adults are aged 40, are both out of work, and are assumed to have full work capacity.
7. If housing benefits are included in the calculations, these are calculated assuming a household renting in the private market paying rent equal to 20% of the average wage. Rent levels are the same for all family types.
8. For a detailed description of the assumptions underlying the OECD Tax-Benefit model and the related policy indicators, please see the methodology document.
9. For more information, visit the project webpage or contact the OECD tax-benefit team.

Validation

The first preliminary release of year T-1 indicators is in February. As this release is based on projected wage values and preliminary information on tax rules, any use of these indicators should include the following disclaimer: “Results based on preliminary data and wage estimates”. The second final release of year T-1 indicators is scheduled in April.