Living minimum from 1.7.2022 to 30.6.2023

The minimum subsistence level is the socially recognised minimum threshold of income of a natural person below which a state of material deprivation occurs.

Life Minimum 2023 (from 1.7.2022 to 30.6.2023)

• €234.42 per month for a single natural person of legal age;
• €163.53 per month if there is an additional adult natural person assessed jointly;
• €107.03 per month for a dependent child or a dependent minor child.

Calculation of the subsistence minimum in model situations

• Single adult with dependent child: €234.42 + €107.03 = €341.45 per month.
• Couple of adults (jointly assessed persons) without children: €234.42 + €163.53 = €397.95 per month.
• Couple with one dependent child: €234.42 + €163.53 + €107.03 = €504.98 per month.
• Couple with three dependent children: €234.42 + €163.53 + €107.03 + €107.03 + €107.03 = €719.04 per month.

How is the minimum subsistence level determined?

The minimum subsistence level is always adjusted on 1. July (1 July) of the calendar year on the basis of the coefficient of growth of net cash income per person or the coefficient of growth of the cost of living of low-income households. These data are provided to the Ministry by the Statistical Office of the Slovak Republic.

The amount of the minimum subsistence amount is adjusted by multiplying the applicable minimum subsistence amounts by:

• by the coefficient of growth of net monetary income per person as determined by the Statistical Office of the Slovak Republic – if the coefficient of growth of net monetary income per person for the period 1. quarter of the current calendar year in comparison with 1. quarter of the preceding calendar year is lower than the coefficient of growth of the cost of living of low-income households for the decisive period established by the Statistical Office of the Slovak Republic or
• the coefficient of growth of the cost of living of low-income households established by the Statistical Office of the Slovak Republic for the decisive period – if the coefficient of growth of the cost of living of low-income households for the decisive period is lower than the coefficient of growth of net monetary income per person established by the Statistical Office of the Slovak Republic for the period 1. quarter of the current calendar year compared to the 1. quarter of the preceding calendar year.

The crucial period for which the growth in the cost of living of low-income households is measured is the period from April of the previous calendar year to April of the current calendar year.

Who are the low-income households?

These are households that have an income below a certain threshold set by legislation or statistical data. This threshold is often referred to as the ‘poverty line‘ and may be set as a percentage of average income, minimum wage or other economic indicators. Low-income households are often entitled to apply for various social benefits (subject to certain criteria) in order to provide at least the basic necessities of life and to improve their financial situation.

What is the minimum subsistence level?

The minimum subsistence level is a legislated amount of money that represents the basic income needed to cover the basic needs of life for an individual or family. These needs include food, housing, clothing, health care, education and other essential expenses.

The specific amount of the minimum subsistence income may vary by country, state or region. In some countries, the subsistence minimum is regulated by law and may be updated regularly in line with inflation and changes in the economy. It aims to provide a minimum level of financial security for citizens who do not have sufficient income to meet their basic needs.

Legislation often mentions the subsistence minimum in the context of calculating social benefits, maintenance, debt relief or other financial obligations. For example, in determining the amount of child support, the court may take into account the subsistence needs of both parents and the child when deciding on the fair sharing of financial burdens.

Standard of living

Living standards are usually defined as a measure of the well-being or quality of life in a given community or country. It is measured on the basis of various indicators such as income, education, health, security, access to resources and so on.

Income is one of the key factors affecting living standards. The higher the average income in a given country or society, the higher the level of consumption, access to health care and education, the higher the standard of housing and so on.

In addition to income, many other factors are taken into account when assessing living standards, such as employment (unemployment) rates, working conditions, social mobility, access to resources, cultural and artistic enjoyment and many others.

Education and health are also key factors affecting living standards, as improvements in these areas can increase labour market opportunities, access to higher quality healthcare and improve quality of life.

The assessment of the standard of living can vary depending on culture, society, region and many other factors. Nevertheless, efforts to improve the standard of living of the population are becoming a goal of many countries and organisations at the global level.

What law talks about a living wage?

In Slovakia, the minimum subsistence level is set by law č. 601/2003 Z.z. o životnom minime a o zmene a doplnení niektorých zákonov, ktorý nadobúda účinnosť od 1. januára 2004. Tento zákon definuje životné minimum, určuje spôsob jeho výpočtu a zohľadňuje pravidelné aktualizácie sumy životného minima.

The amount of the minimum subsistence level is adjusted according to different coefficients, so the amount of the minimum subsistence level cannot go down, but it can stay the same.

The Living Wage Act sets different amounts for different categories of the population. For example, there are different amounts for an adult, a dependent child or a person in a shared household, which may change periodically. The law also takes into account the number of persons in the household and their relationships to each other.

Disadvantages of a subsistence minimum?

The living wage is intended to provide basic financial security for individuals and families on low incomes, but there are some drawbacks:

• Individual needs are not taken into account – the subsistence minimum is set as a uniform amount for a certain category of the population and may not take into account individual needs, health problems or other special circumstances that may increase the cost of living.
• Regional differences are not taken into account – the cost of living can vary considerably from region to region. A national minimum subsistence level may not adequately take account of these differences, which can lead to imbalances between the populations of different regions.
• There is insufficient flexibility to take account of inflation and economic changes in society – even if the living wage is regularly updated (annually), its adjustment to inflation and changes in economic conditions may be insufficient or delayed, which may reduce the real value of the living wage.
• May encourage welfare dependency – setting a living wage may create dependency on state welfare benefits and remove incentives to seek employment or improve work skills if the net income from work (minimum wage) is only slightly above the living wage or the benefits attached to it.
• Potential for abuse of the system – there is always a risk that some individuals or families will abuse the minimum subsistence system and receive benefits to which they are not entitled, which can lead to higher social costs and inefficiencies in the system.

More than 60 other variables affect the minimum subsistence level

A common thing that is tied to a living wage is the much-publicised material hardship benefits. The minimum subsistence level also affects dozens of social and health benefits or cash allowances linked to the minimum subsistence level.

The living wage is also linked to some tax figures. For example, the non-taxable part of the tax base per taxpayer, the earnings threshold on which taxes must already be paid or the amount of the tax base at which the non-taxable minimum is cut and higher tax is paid.

The Ministry of Labour, Social Affairs and Family speaks of almost 60 variables that are linked to the subsistence minimum.

The minimum subsistence level also affects, for example, the amounts of parental allowance for people who are also entitled to maternity pay and for parents who have not worked and are not entitled to maternity pay. Both amounts increase from January of each year. Thanks to the increase in the minimum subsistence level, for example, the resocialisation allowance, compensation for the social consequences of severe disabilities and the amount of recurrent allowances to a surrogate parent have also increased from July 2022.