- The at-risk-of-poverty threshold (ARPT) derived from EU-SILC 2022 was of €10,893.26.
- In 2022, the number of at-risk-of-poverty persons living in private households was estimated at 16.7 per cent of the target population, a decrease of 0.2 percentage points when compared with 2021.
- From EU-SILC 2022, the at-risk-of-poverty or social exclusion rate (AROPE) stood at 20.1 per cent, thus registering a decrease of 0.2 percentage points from 2021.
Introduction
The European Statistics on Income and Living Conditions (EU-SILC) survey is an annual enquiry conducted by the National Statistics Office (NSO) among persons residing in private households in Malta and Gozo. Income statistics refer to calendar year 2021, while non-income components (such as material deprivation) refer to 2022, which is the data collection year.
The average gross household income for 2021 as derived from EU-SILC 2022, was estimated at €43,186, while the average disposable household income was estimated at €34,814 (Table 4).
In 2022, the severe material and social deprivation rate (SMSD) among persons living in households was 4.9 per cent. This figure was 0.5 percentage points lower than that estimated by EU-SILC 2021. The most influential variables were: inability of the household to pay for one week’s annual holiday away from home (33.3 per cent), inability of the household to replace worn-out furniture, and inability of the household to face unexpected financial expenses (15.4 per cent) (Table 9).
At 20.1 per cent, the at-risk-of-poverty or social exclusion rate (AROPE) decreased by 0.2 percentage points when compared to that derived from EU-SILC 2021. The AROPE reveals the share of persons who are either at-risk-of-poverty, severe materially and socially deprived, or residing in a household with low work intensity (applicable only for persons aged 0-64) (Table 1).
At-Risk-of-Poverty or Social Exclusion indicator
The AROPE rate defines the proportion/number of people who are either at risk of poverty, or severely materially and socially deprived, or living in households with very low work intensity. In EU-SILC 2022, the AROPE rate was estimated at 20.1 per cent, registering a decrease of 0.2 percentage points from 2021. A decrease can be noted across the under 18 and 18-64 age groups, with the greatest decrease (1.5 percentage points) experienced among persons aged between 18 and 64 years. Thus, the AROPE rate for this cohort stands at 15.5 per cent. On the other hand, an increase can be noted among persons aged 65 and over, with 3.4 percentage points, thus reaching a rate of 33.3 per cent for this cohort (Table 1).
Table 1. At-risk-of-poverty or social exclusion rates (AROPE) by age group and sex
| Age group | Sex | 2021 | 2022 | |
| % | % | Number of persons below the threshold |
||
| All ages | Males | 18.9 | 18.9 | 50,357 |
| Females | 21.9 | 21.3 | 52,476 | |
| Total | 20.3 | 20.1 | 102,834 | |
| Under 18 | Total | 23.2 | 23.1 | 19,489 |
| 18-64 | Males | 15.7 | 14.9 | 26,499 |
| Females | 18.4 | 16.3 | 25,259 | |
| Total | 17.0 | 15.5 | 51,758 | |
| 65 and over | Males | 27.3 | 29.8 | 13,353 |
| Females | 32.3 | 36.5 | 18,233 | |
| Total | 29.9 | 33.3 | 31,586 | |
The at-risk-of-poverty rate (ARP) among persons below 18 years of age was calculated at 19.3 per cent, down by 0.3 percentage points from the previous year. A decrease of 0.8 percentage points was observed for persons aged 18-64, bringing the ARP rate for this age cohort down to 12.3 per cent in 2022. The rate for those aged 65 or more went up to 30.0 per cent, equivalent to an increase of 1.9 percentage points over EU-SILC 2021 (Table 2).
Table 2. At-risk-of-poverty rates by age group and sex
| Age group | Sex | 2021 | 2022 | |
| % | % | Number of persons below the threshold |
||
| All ages | Males | 15.8 | 15.8 | 42,153 |
| Females | 18.0 | 17.8 | 43,644 | |
| Total | 16.9 | 16.7 | 85,797 | |
| Under 18 | Total | 19.6 | 19.3 | 16,224 |
| 18-64 | Males | 12.3 | 12.2 | 21,710 |
| Females | 14.0 | 12.5 | 19,434 | |
| Total | 13.1 | 12.3 | 41,144 | |
| 65 and over | Males | 25.9 | 26.8 | 12,030 |
| Females | 30.1 | 32.8 | 16,400 | |
| Total | 28.1 | 30.0 | 28,429 | |
Household Income
For income reference year 2021, the average gross household income was estimated at €43,186. On the other hand, the estimate for the average disposable household income was €34,814. Disposable income is defined as the amount of money available to households for spending purposes, after deducting taxes, social contributions, and alimonies (Table 4).
Employment income made up 81.0 per cent of the total gross household income for 2021. The share of social benefits (including old-age benefits) for 2021 stood at 15.5 per cent (Chart 1).
Chart 1. Household gross income distribution
No Data Found
National Equivalised Income (NEI) Distributions
The NEI of a household is defined as the household’s total disposable income divided by its ‘equivalent size’ (also referred to as consumption units). The NEI takes into account the size and age distribution of household members. The Gini coefficient is one of the measures of income inequality that varies between 0 and 100 per cent. A Gini coefficient of 0 per cent indicates a perfectly equal distribution of income. On the other hand, a Gini coefficient of 100 per cent indicates that there is full inequality of income.
The S80/S20 ratio, which compares the average NEI of the highest and lowest 20 per cent income earners, was calculated at 4.8 (Table 4).
The Gini coefficient for Malta, as derived from EU-SILC 2022, decreased by 0.1 percentage points to 31.1 per cent, when compared to the previous year (Table 4).
Monetary poverty (ARP)
The at-risk-of-poverty threshold (ARPT) is defined as 60 per cent of the median NEI. EU-SILC respondents whose NEI falls below this threshold are considered to be at-risk-of-poverty (ARP).
The ARPT derived from EU-SILC 2022 was estimated at €10,893, 6.6 per cent higher when compared to the previous year (Table 4).
Based on the income year 2021, the number of at-risk-of-poverty persons living in Malta was estimated at 85,797 or 16.7 per cent of the target population (Table 4).
Chart 2 provides a comparison between the growth indices of the ARPT, the ARP rate (Table 2) and the AROPE rate (Table 1)
Chart 2. Comparison of the at-risk-of-poverty threshold, the at-risk-of-poverty rate and the at-risk-of-poverty or social exclusion rate in index form
(EU-SILC 2015 = 100)
No Data Found
When all social transfers, including pensions, are excluded, the at-risk-of-poverty rate (ARP) for 2022 increases by 18.4 percentage points, or 94,368 persons (Table 5). This illustrates the importance of social welfare in assisting the most vulnerable persons in society.
The ARP rate for households with and without dependent children were calculated at 15.3 and 18.1 per cent respectively (Table 6). Members of single parent households were noted to be more susceptible to being at-risk-of-poverty, with 43.3 per cent of these having an equivalised disposable income below the ARPT. Members of one person households with an age of 65 years or more, and members of households with two adults, and three or more dependent children, were also more prone to being at-risk-of-poverty (Table 6).
The ARP rate among persons living in households with at least one member aged 0-64 years, decreased as the household work intensity increased (refer to methodological note 4). Indeed, 73.3 per cent of persons living in households with very low work intensity were found to be at-risk-of-poverty in EU-SILC 2022 (Table 7).
An increase was recorded in the at-risk-of-poverty rates for the retired and other inactive persons for the reference year (refer to methodological note 4) when compared to the previous EU-SILC. On the other hand, there was a decrease in the at-risk-of-poverty rate for those employed, while the rate for those unemployed remained the same as that in the previous year (Table 8).
At a district level, the distribution of persons under the ARP threshold was uneven across the Maltese Islands, with the Northern Harbour district having the largest share of ARP persons followed by the Northern district. On the other hand, the South Eastern district registered the lowest ARP rate (Map 1).
Map 1. Distribution of the at-risk-of-poverty (ARP) rate by district: 2022
Material and Social Deprivation Indicators
The Material and Social Deprivation indicators are based on 13 items, of which seven deprivation items relate to the person’s household and six deprivation items relate to the persons themselves. The list of components was adopted by the EU Member States in 2017 (refer to methodological note 5). From this set of variables two major indicators are obtained, namely the Material and Social Deprivation (MSD) indicator and the Severe Material and Social Deprivation (SMSD) indicator.
When compared to 2021, the highest increases in 2022 were recorded in the respondents who said that their household was unable to afford a meal with meat, chicken, fish or vegetarian equivalent every second day, respondents who said that they found it difficult to regularly participate in a leisure activity, and respondents who found it difficult to spend a small amount of money each week on themselves (Chart 3a and Chart 3b).
Chart 3a. Household Material and Social Deprivation rates among respondents