Risk of poverty (i50)

Definition: the share of the population at risk of poverty is the ratio of the number of persons with a net equivalised disposable income below 60% of the national median, to the total population. Net disposable income is equal to the sum of the gross incomes of all household members less taxes, social security contributions and transfers between households (EC, 2016). In order to obtain the net equivalised disposable income, the net disposable income is divided by an equivalence factor (the so-called 'modified OECD' equivalence scale). An adult has a factor of 1, each additional person from the age of 14 a factor of 0.5 and each additional person under the age of 14 a factor of 0.3. The net equivalised disposable income makes it possible to compare the standard of living of people, taking into account the economies of scale resulting from a joint household and the composition of the household. It is assumed that the standard of living of persons with a net equivalised disposable income below 60% of the national median in the total population is insufficient to meet the minimum acceptable living patterns in Belgium. People at risk of poverty are part of the target group of people at risk of poverty or social exclusion, as defined in the framework of the Europe 2020 strategy.