What level of income are you rich, poor or average? The Inequalities Observatory, in its annual report, offers a reading grid.
From what level of income are we rich or poor? Do you belong to the popular, middle or affluent classes? The report of the Inequalities Observatory (1) published this Thursday proposes to shed light on the question after having determined the thresholds of standards of living.
The poverty line is thus set at 50% of the median level and the popular categories include all people whose income is in the lowest 30%. The middle classes are located between the poorest 30% and the top 20% of the scale that we call the well-off. At the very top, we set the wealth threshold at twice the median standard of living, detailed by the Observatory.
3800 euros per month, the wealth threshold for a single person
According to its classification, based on 2020 data from Insee, single people are considered poor if their disposable income (after taxes and social benefits) is less than 940 euros per month. They belong to the popular classes with up to 1500 euros in income per month and to the middle classes between 1500 and 2700 euros per month. From 2700 euros of income per month, they are qualified as comfortable by the Observatory, and rich above 3800 euros per month.
Wealth thresholds that change with family composition
Depending on the composition of one’s family, one is not rich or poor at the same level of income. We therefore indicate these thresholds for different types of households. We retain five family configurations and multiply the amounts of income which delimit our categories by a number of shares which depends on the size of the family, explains the Observatory.
Thus, for childless couples, the poverty line passes, according to the Observatory, 1411euros per month. They are part of the middle classes with incomes between 2200euros and 4000euros. According to the Observatory, they are rich above 5,600 euros in income.
Another example for couples with two children over 14 years old. If their monthly income is less than 2350 euros, they are classified as poor, as middle class between 3738 and 6700 euros and as rich above 9400 euros.
Salary, pension… With what income per month are you rich?
(1) 2023 report on inequality in France by the Inequality Observatory