The at-risk-of-poverty rate is based on a “relative" poverty line. It corresponds to the percentage share of people at risk of poverty in the total population. People are considered to be at risk of poverty if their household income is considerably below the standard income level in the country concerned. Their equivalised disposable income is below the at-risk-of-poverty threshold. Thus, poverty is seen as a form of inequality. As this indicator may be calculated everywhere in the same way, regardless of a country's own factors such as social legislation, it is appropriate for international comparisons.
