Calculate your Minimum income standard

FAQs

• How accurate is the MESL Calculator?

  Our calculations for the tax, PRSI, USC, social welfare entitlements and medical card eligibility may not be fully accurate for your situation. We have to make certain assumptions in our calculations and these may not all be true in your particular circumstances.

• What is the MESL Calculator?

  The MESL Calculator shows the weekly cost of the goods & services people in Ireland have agreed are needed to live with dignity. The calculator lets you work out the cost of a MESL for a household like yours.

  By answering a few simple questions to describe your household the calculator produces the average weekly MESL budget for a household like yours. It can then either calculate the salary that would need to be earned to afford a MESL or check if the social welfare income a household like yours may be eligible for would meet the MESL costs.

• What is the Minimum Income Standard?

  The Minimum Income Standard (MIS) is the gross salary each employed adult in a household would need to earn to afford a Minimum Essential Standard of Living.

  The MIS method, calculates the PAYE income tax liability, PRSI contribution and amount of USC payable, and assesses eligibility for any social welfare entitlements applicable to the household type. Household income is calculated on the basis of incremental increases in salary, re-assessing the adequacy of household income at each step.

  The MIS method involves multiple iterations of these calculations, each iteration representing a €0.10 incremental increase in hourly salary. The MIS for a household is reached at the point where total household income meets the MESL expenditure need of the specified household type.

• What types of households are covered by the MESL calculator?

  Our aim is to cover a broad range of household types in our research, but we are only able to consider a limited number of household types and compositions. For this reason we have concentrated on the most commonly found household types.

  The MESL research has established the minimum needs for the following household types:

  • Two Parent households with up to four children
  • One Parent household with up to four children
  • Single working-age adult, living alone
  • Couple, working-age, cohabiting
  • Older single adult, living alone
  • Older couple

  These household types represent approximately 90% of households in Ireland.

• What assumptions are made when calculating income from employment?
  • For calculating income from employment full-time salaries are based on an average 37 ½ hour week, and part-time salaries on working 19 hours in an average week.
  • In calculating the net salary for a dual income two-parent household we assume that the parents are eligible to be jointly assessed for tax.
  • In calculating the Income Tax liability of the household entitlement to the basic tax credits applicable to the household type described is assumed. PRSI contributions are calculated on the basis of Class A.
  • The levying of Universal Social Charge is calculated as standard. The reduced rate is applied when the household situation indicates full Medical Card entitlement.
  • Please note the calculation of the Universal Social Charge may not be fully accurate for household situations with a Medical Card and annual gross salary of over €60,000.
• What assumptions are made for means test & eligibility for Social Welfare, Medical Card, etc?
  • For means tested supports, it is assumed that the household has no savings, assets, or other sources of income which would affect the eligibility or rate of payment.
  • We assume individuals in receipt of an unemployment Jobseeker’s payment are entitled to the full personal rate, and also the full rates for any qualified adult and child increases.
  • Assuming that the minimum working hours for any individual in employment averages 19 hours per week assures the household meets the basic working hour eligibility criteria for the Working Family Payment.
  • For Medical Card & GP Visit Card eligibility the HSE guidelines are followed and allowances made for transport and childcare costs; however the allowances made in our calculations differ from your actual costs.
  • It is assumed that all children in the household aged from 4 to 18 (inclusive) are in full-time education. Therefore, the household may be entitled to the Back to School Clothing and Footwear Allowance, and Child Benefit is included for all children in the household.
• What assumptions are made for income and supports for older people?
  • For calculating State Pension rates we assume maximum entitlement to the Contributory Pension.
  • For the Non-Contributory State Pension, we assume the means test qualifies the household for the highest rate of payment (under 80). It is also assumed that the increase for any Qualified Adult is paid at the full rate.
  • We do not include any private pension or other income in the calculations, and assume no tax liability for the household.
  • It assumed the household will qualify for a full Medical Card and the Fuel Allowance
• Why can only some areas of expenditure be adjusted?

  The MESL basket is based on research with members of the public who have agreed the goods and services required to enable an acceptable standard of living. This provides a universal baseline, but certain assumptions are made about how that baseline is reached.

  In reality, a household can require different expenditure to reach the same minimum standard. This is not the result of a choice, but due to circumstances the household has little control over.

  That is why you can adjust areas of the MESL basket cost to reflect your circumstances, for example housing, home energy and transport needs, but not food or clothing costs.

• Why is my household type not included?

  There is a great variety in the make-up of households and peoples’ living situations. The MESL research aims to establish the minimum needs of as broad a range of household types as possible.

  The research is always developing, but we are not able to cover every household situation.

  For that reason we have concentrated on the most commonly found household types, as the MESL data and calculator are limited to single family-unit households, households comprised of either a single adult or a couple, and up to four dependent children.

  The households not covered by the current MESL data, are households with additional adults (e.g. a family household with children, parents and grandparent) and households with more than four children. These represent approximately 10% of households in Ireland.

• When is the MESL Calculator updated?

  The Calculator uses the latest MESL living costs data available. The latest MESL figures are published in June each year, and the Calculator is updated to use these shortly after publication.

  The MESL Calculator income calculations are updated in the first quarter of each year.