Abstract

Methodology for defining poverty line and its binding to the guaranteed minimal payments is suggested. The methodology for calculation poverty line is based on the combination of two approaches – the relative and the absolute. The first one ensures connection of poverty line to the de facto income distribution into the society and the second – ensuring the minimal living standard. Methodological solutions are presented for defining guaranteed minimal payments (minimal salary/wage, social pension and social benefits), which reflex directly or indirectly the dynamics of poverty line.