Welfare of persons; key figures

Table explanation

Description topics

Equivalised income

The disposable income is defined as the gross income minus current transfers paid (like alimony payments to an ex-partner), income insurance premiums, health insurance premiums and tax on income and wealth. Gross income is the sum of income from labour, income from self-employment, income from property, payments from the government and other receipts (like alimony payments by an ex-partner).

The equivalised income is the disposable income corrected for differences in household size and composition. The correction factor used reflects the advantages of scale of households with two or more members. The single person household is used as the reference household. The equivalised income is a measure of the prosperity of (members of) a household.

Number of persons

Number of persons in private households with a known income on January 1st of the reporting year whose household income is well-known.

Mean equivalised income

Mean standardised disposable income per person.

Personal income

Personal income is defined as income from labour, income from self-employment, allowances from income insurance (like unemployment benefits) and social facilities (except for child benefits). Premiums for income insurance (except for national insurances like social welfare) are deducted from the personal income.

Number of persons with income

Number of persons with personal income in private households on January 1st of the reporting year.

Mean personal income

Mean personal income per person.

Personal income is defined as income from labour, income from self-employment, allowances from income insurance (like unemployment benefits) and social facilities (except for child benefits). Premiums for income insurance (except for national insurances like social welfare) are deducted from the personal income.

Median development purchasing power

Purchasing power is defined as the equivalised household income adjusted for price developments, which are based on the consumer price index (CPI). Purchasing power is used to determine income changes (in real terms), but may also be used to determine (developments in) differences in prosperity between individuals or households.

The development is measured by the median change in purchasing power. The median is defined as the value separating the higher half from the lower half. In simple terms, it may be thought of as the "middle" value of a data set.

Persons economically independent

Number of economically independent persons as a percentage of all persons in a category.

Economic independence in accordance with policy is connected to the social benefit level of a single person. Someone is considered to be economically independent if the personal net income from work (employed as well as self-employed) is equal to or exceeds this level.

Persons in poverty

The number of people living in poverty, as a percentage of the total population per category.

The poverty line is based on basic necessities. If, after paying fixed costs for housing, energy, and health insurance, there is insufficient money left for other necessities, a household—and its members—are considered poor. The poverty line for a household depends on the type of household. The more people in a household, the more money is needed to live and participate in society. The required amounts are determined by the Nibud (National Institute for Family Finance Information) for 35 different types of households. In addition to money for housing, energy, insurance, clothing, and daily groceries, this also includes things like a telephone, internet access, and social activities.

To determine whether a household is living in poverty, not only income but also the household's capital buffer (savings or other available assets) is considered. A household is not considered poor if its capital buffer can cover expenses at the poverty line level for at least twelve months.