07.02.2023

THE EU COUNCIL ADOPTED A RECOMMENDATION ON THE MINIMUM INCOME

The Council of the European Union has announced that it has adopted a recommendation on the minimum income, which aims to combat poverty and social exclusion, increase employment, access to basic services for citizens without sufficient means.

Although all EU countries have social security systems, progress in making them accessible is uneven, so the Council recommends that countries provide and improve these systems with minimum income rates and other accompanying cash benefits, including in kind.

It is recommended that the level of the minimum income be determined according to a clear methodology, in accordance with national legislation and with the participation of stakeholders, taking into account the common sources of income, the particular needs of disadvantaged people and households, the income of the lowest paid or minimum wage earners, living standards and purchasing power, price changes.

EU countries are expected to take action to achieve an appropriate level of income support by 2030 at the latest, while maintaining budget sustainability.

States should regularly review and change the minimum income value. In times of economic downturn, flexibility in the calculation of the minimum income can play an important role in mitigating adverse social consequences and supporting the economy, the announcement added.

In 2021, more than 95.4 million Europeans are still at risk of poverty or social exclusion, especially among women, according to figures cited by the Council of the EU.