Guaranteed Minimum Income - Elements

Elements

A system of guaranteed minimum income can consist of several elements, most notably:

  • a minimum wage, either set by law or resulting from negotiations of employers or their organizations with trade unions;
  • a calculation of the social minimum, usually below the minimum wage;
  • a safety net, to help citizens or families without sufficient financial means survive at the social minimum. This may be a transfer or, in some cases, a loan, and is generally conditional to availability for work, performance of community services, some kind of social contract, or commitment to a reintegration trajectory;
  • child support by the state;
  • student loans and grants;
  • state pension for the elderly.

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