Slovenian formula-The level of National Basic Income

The level of National Basic Income is a matter of heated debates. The common formula could be  beneficial as a starting point and first orientation.

The microsimulation[1] showed that Slovenian BI formula proved to be: 1) better for the majority, 2) the same or better for the most vulnerable and 3) better for the lowest deciles and 4) budget neutral.

Slovenian (KOROŠEC, 2010) formula: BI = an average of three components 

1)            Social Assistance for a single person, with no children. It indicates the ‘generosity’ of the current social security system.

2)            ½ of the Poverty Threshold at the point of 60% percent of the median income. It takes into account income distribution and the risk of poverty.

3)            1/3 of the Average Wage (neto). It takes into account the ‘value of work.’

Of course, this partial’ BI (e.g. below Poverty Threshold) may not be a perfect solution but it may be our (last) chance….in Europe and worldwide to act now.