Statistics Iceland
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At-risk-of-poverty rate among individuals 25 years and older by sex and education 2004-2023

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1/8/2025
Rate/number
2004-2023
LIF01131
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Estimates for 2021-2023 are preliminary. Individuals aged 25 and above. Educational status is classified according to ISCED 2011. The at-risk-of-poverty rate is the share of people with an equivalised disposable income below the at-risk-of-poverty threshold, which is set at 60 % of the national median equivalised disposable income. This indicator does not a directly measure poverty, but low income in comparison to other residents in the country. Disposable income is the total income of a household, after tax and other deductions (transfers to other households), that is available for spending or saving. Disposable income includes all income from work (employee wages and earnings from self-employment); private income from investment and property; transfers between households; all social transfers received in cash. Equivalised disposable income is the total income of a household divided by the number of household members converted into equalised adults; household members are equalised or made equivalent by weighting each according to their age, using the so-called modified OECD equivalence scale. The equivalised disposable income is calculated in three steps:
1. The total (net) household income is calculated by adding up all monetary incomes received from any source by each member of a household; these include income from work, investment and social benefits, plus any other household income. Taxes and social contributions that have been paid are deducted from this sum.
2. Using the OECD equivalence scale, the total household income is divided by the number of „equivalent adults“, in order to reflect differences in a household's size and composition. This scale gives a weight to each member of the household (and then adds these up to arrive at the equivalised household size): 1.0 to the first adult; 0.5 to the second and each subsequent person aged 14 and over; 0.3 to each child aged under 14.
3. Finally, the resulting figure is called the equivalised disposable income and is attributed equally to each member of the household.
The equivalised household size for a family with two adults and two children calculates to 2.1, using the modified OECD scale (1 for the first adult, 0.5 for the second adult, and 0.3 for each child). If this household earns a total income of 500,000 ISK per month, then the equivalised disposable income would be approximately 238,095 ISK (500,000 ISK divided by 2.1).

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95% confidence interval (+/-)

The Statistics on Income and Living conditions survey (SILC) is a sample survey, and therefore there is uncertainty surrounding the results. Confidence intervals are calculated to estimate this uncertainty; it estimates how the sample value represents the true value of the population. With 95% certainty the true estimate is contained within the upper and the lower bounds.

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Estimated numbers are rounded to the next hundred.