Subsistence minimum

WHAT SHOULD THE SUBSISTENCE MINIMUM BE FROM 1 JULY 2023?

As every year, the subsistence minimum is going up again, with one change: the way the subsistence minimum amounts are calculated.

The amendment to the Act on Assistance in Material Need was approved with several changes concerning the mechanism for indexing the subsistence minimum amounts. Until now, the subsistence minimum amounts were determined on the basis of the growth in net cash income per person or the coefficient of growth in the living costs of low-income households. The amended act changes this mechanism, and the amounts are adjusted only by means of the coefficient of growth in the living costs of low-income households, with a lower value.

The calculation of the subsistence minimum amounts changes from this year. Under the amended Act on the Subsistence Minimum, the subsistence minimum amounts will be adjusted every year as at 1 July of the current calendar year. The calculation is done by multiplying the currently valid subsistence minimum amounts by the coefficient of growth in the living costs of low-income households determined by the Statistical Office of the Slovak Republic (Štatistický úrad SR) for the reference period (from April of the previous calendar year to April of the current calendar year). The amounts are rounded up to the nearest euro cent.

According to information published by the Statistical Office of the Slovak Republic on 15 May 2023, the consumer price index for low-income households rose by 14.7% year on year in April 2023. This coefficient will therefore be decisive for adjusting the subsistence minimum amounts from 1 July 2023.

The new subsistence minimum amounts valid from 1 July 2023 to 30 June 2024 are as follows:

• €268.88 a month for one adult individual,
• €187.57 a month for an additional jointly assessed adult individual,
• €122.77 a month for a minor child who is provided for or a dependent child.

The basic subsistence minimum amount has increased by €34.46 a month. The subsistence minimum affects various other areas, such as income tax, and benefits and allowances for parents.

The subsistence minimum amounts for a given year are set by a measure of the Ministry of Labour, Social Affairs and Family of the Slovak Republic on the adjustment of subsistence minimum amounts. This measure has not yet been published. All the figures mentioned above are based on the law that will affect the level of the subsistence minimum. Should there be any change compared with the figures given above in this article, we will let you know.