Definition: At-risk-of-poverty rate after social transfers
The "at-risk-of-poverty rate after social transfers" indicator is defined as the share of persons with an equivalised total net income after social transfers (total income) below the 60 % national median income. Net income is total income from all sources minus income tax. The median is the value which splits the distribution of income into two parts of equal size; exactly 50 % of people fall below that value and 50 % are above it. Household income is "equivalised" using a methodology established by the OECD, which takes into account differences in household size and composition, making comparisons more realistic.
Eurostat, "Measuring progress towards a more sustainable Europe. Sustainable development indicators for the European Union. Data 1990-2005", Office for Official Publications of the European Communities, Luxembourg, 2005