Social minimum

The legal minimum subsistence level as the outcome of a political decision-making process.

The standard norm for the minimum household income is laid down in legal regulations and varies with the composition of the household. The standard norm for a (married) couple with only underage children is equal to the income support benefit for a couple plus (age-dependent) child allowance. The standard norm for over-65s is the old age (AOW) pension.

The social minimum is adjusted on an annual basis. In 2005, for instance, the social minimum was adjusted downwards, whereas in 2006 it rose noticeably for various groups. If the social minimum grows, it implies that incomes which retain their purchase power might dip just below the social minimum.