The guaranteed minimum income, an indicator of social protection for needy families: 1994–2022

Abstract

This form of support was called social assistance. It was explicitly built around the idea of ​​minimum consumption and had as beneficiaries, especially people / families of working age, without a job, with children in maintenance. One year later, Law 67/1995 proposed the concept of guaranteed minimum income (GMI), designed to cover the consumption needs of the poorest (10%) of Romanians, identified by consumption expenditure per household, approximately 6% of Romanian households. The guaranteed minimum income is a very well-targeted allowance, which identifies people at risk of poverty and social exclusion, being based on testing means, depending on income, household possessions and land owned, and is granted on condition that the beneficiary works in for the benefit of the community, to discourage inactivity. Starting with January 2011, the necessary funds are provided from the state budget through the budget of the Ministry of Labor, Family and Social Protection and consist of financial benefits and services that include: the guaranteed minimum income; health insurance, without the obligation to pay the contribution to the health insurance budget.