Cash Transfers and Guaranteed Minimum Income Programs:
Research, Evaluation, and Policy
Prague, Czech Republic
September 9-10, 2024
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“Navigating EU Standards: Poland's Struggle with Minimum Income Adequacy, Coverage and Take-Up”
Ryszard Szarfenberg, University of Warsaw
The European Union has recently adopted the Recommendation on Adequate Minimum Income Ensuring Active Inclusion, yet there is limited knowledge on national-level implementation. National case studies are crucial, and Poland's unique system, developed under 1990s' socio-economic pressures, provides an insightful example. Poland's current minimum income system, established in 2004, includes the last resort social assistance benefit (zasiłek okresowy). However, four key limitations exist: 1) Income poverty alone is insufficient for eligibility. 2) The minimum standard has often been below the extreme poverty line. 3) The guaranteed amount is only 50% of the full income gap. 4) Eligibility periods are municipally discretionary. These limitations suggest non-compliance with EU standards of Adequacy of Income Support and Coverage of Minimum Income. This paper addresses the following questions based on the EU Recommendation: 1) Does Poland have a transparent methodology for setting minimum income levels? 2) Is this methodology legally defined and stakeholder-inclusive? 3) Does it consider overall income sources, specific household needs, and living standards? 4) Does income support meet national at-risk-of-poverty thresholds or necessary living costs? 5) Is the minimum income level regularly reviewed and adjusted? 6) Do means-testing thresholds reflect household living standards? 7) Are household incomes and assets proportionately considered for eligibility? 8) Is access to minimum income continuous for eligible individuals? This analysis reveals the complexities and challenges of aligning Poland's minimum income system with EU standards, providing valuable insights into national implementation.