Poverty in Germany: This is how the limit to the subsistence level is defined!

Poverty in Germany: This is how the limit to the subsistence level is defined!

An analysis by the German Economic Institute (IW) on the risk of poverty in Germany recently found that the definition of poverty is relative and depends on various factors such as income, household size and employment status. According to the results, a distinction is made between absolute (living income that threatens existence) and relative poverty (comparative to the standard of living). In the European Union, a person is considered to be at risk of poverty if their income is less than 60% of the median income.

For 2022, the poverty line for people living alone was a monthly net income of less than 1,390 euros. Single parents with a child under 14 had a poverty limit of 1,800 euros, while couple households with two children had a poverty limit of 2,910 euros. The study is based on EU-SILC data from 2023, which looks at income levels in 2022. The calculation takes into account net income after taxes, duties and transfer payments as well as rental benefits from owner-occupied property.

Statistical background on the risk of poverty

The modified OECD scale is used to take into account different costs of living. For a family of four, a monthly net income of 3,880 euros is considered middle class, while a single person is classified in this category from just 1,850 euros. In 2022, about 14.4% of the population lived below the poverty line. Particularly affected are young adults aged 18 to 24 with an at-risk-of-poverty rate of 24.6%, single parents (23.7%) and people living alone (26.4%).

The analysis also showed that women (15.1%) are more affected by poverty than men (13.7%). Among the employed, only 6.6% are considered poor, while 46.5% of the unemployed are at risk of poverty. 18.3% of pensioners and pensioners were classified as at risk of poverty in 2023. Interestingly, subjective perceptions of poverty often differ from objective criteria; many Germans do not feel poor. In the 2023 ALLBUS survey, over half of those surveyed classified themselves as middle class, regardless of their actual income.

In addition to the IW analysis, it is known that various international poverty measures are established. Loud Statistics Austria People with a net household income of less than 60% of the median income are considered to be at risk of poverty. It is also found that households with low work intensity utilize less than 20% of their work potential. The key figures recorded are based on administrative and survey data from the annual EU-SILC survey.