Study for developing a methodology for determining the household subsistence minimum

The subsistence minimum in Estonia is calculated on the basis a methodology that relies on a consumption basket drawn up nearly 20 years ago. Although the cost of the basket is regularly updated based on the CPI, this approach has several shortcomings. The main disadvantages of the current approach, as highlighted in the technical description of the project, include that the methodology is outdated (does not consider needs that have changed over time); does not account for the differing needs of various target groups; and there is a lack of procedures for the regular comprehensive revision of the basket. According to the terms of reference for the project, the methodology to be developed in the study must overcome the aforementioned shortcomings. The research tasks are divided into two main objectives: 1. Development of a methodology for determining and regularly updating the subsistence minimum appropriate for Estonian conditions, including: Preparation of a sample budget in at least four categories (food expenses, housing-related expenses, other individual expenses, healthcare expenses); analysis of which households should be differentiated in the methodology; development of consumption weights suitable for Estonia; development of a methodology for the regular updating of the subsistence minimum. 2. Analysis of the adequacy and accessibility of the subsistence benefit, based on the subsistence minimum developed in the previous stage. The analysis will address both the number of different types of households that qualify for the subsistence benefit and the psychological accessibility of the benefit. Proposals will be made regarding the methodology for determining the subsistence benefit and the relationship between the subsistence level and the subsistence minimum. This application describes a vision of a methodology that enables the achievement of the study tasks, as well as the research team, schedule, and risks associated with conducting the study.